BOSTON – In a stunning turn of events, Certified Public Accountant David Plunkett from Lynn was sentenced today in federal court for his role in a decade-long mortgage fraud scheme that defrauded financial institutions out of millions. Plunkett, 57, received a slap on the wrist with time served—approximately one day in prison—and three years of supervised release.
Plunkett’s sentence follows his guilty plea to bank fraud and aiding in the submission of false tax returns. The Lynn CPA was part of a larger scheme that involved co-defendants Joseph Bates III and George Kritopoulos, who were previously sentenced for their roles in the scam.
In September 2018, Plunkett was charged alongside Bates and Kritopoulos. The trio ran a fraudulent operation from 2006 through 2015, targeting multi-family buildings in Salem, Mass., converting them into condominiums, and then selling them to unsuspecting buyers who were unable to repay the loans.
The fraudulent scheme involved falsifying documents to lenders, including false tax returns prepared by Plunkett that contained inflated income figures. Kritopoulos, who was sentenced to four years in prison, was also convicted of conspiracy, wire fraud, and obstruction of justice. Bates received an 18-month sentence for his involvement.
The trio’s fraudulent activities resulted in substantial losses to lenders and foreclosures on several properties. Plunkett was ordered to pay $147,500 in restitution to victims and $64,284 to the Internal Revenue Service.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta of the Federal Bureau of Investigation have been leading the investigation into this sophisticated fraud scheme.
Related Federal Cases
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Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: White Collar Crime|Organized Crime
- Source: Official Source ↗
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