BOSTON – A Lynn Certified Public Accountant (CPA), David Plunkett, 57, was handed a lenient sentence of one day in prison and three years of supervised release by U.S. District Court Judge Richard G. Stearns for his involvement in a decade-long mortgage fraud scheme.
Plunkett, who pleaded guilty to bank fraud and aiding in the submission of false tax returns in February 2019, was also ordered to pay $147,500 in restitution to victims and $64,284 to the IRS. The sentence came after Plunkett’s co-defendants, Joseph Bates III and George Kritopoulos, faced harsher penalties for their roles in the scam.
In September 2018, Plunkett was charged alongside Bates and Kritopoulos. Kritopoulos received a four-year prison term and two years of supervised release, while Bates was sentenced to 18 months in jail and three years of supervision. Both men were ordered to pay substantial restitution and fines.
Between 2006 and 2015, the trio engaged in a scheme that defrauded banks by submitting false information on behalf of borrowers who were induced to purchase properties, predominantly in Salem, Mass. Kritopoulos converted multi-family buildings into condominiums, while Bates recruited new buyers for individual units. Plunkett’s role involved preparing false tax returns and providing other forged documents to support fraudulent mortgages.
Among the 21 properties involved, borrowers defaulted on their loans in all but two instances, leading to foreclosures and significant losses for lenders. The scheme included false representations about employment, income, assets, and intentions of occupying properties.
The case highlights the lengths scammers will go to exploit financial systems, and the consequences faced by those who perpetuate such schemes. U.S. Attorney Rachael S. Rollins and the Federal Bureau of Investigation’s Boston office led the investigation into this complex fraud.
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Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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