TRENTON, N.J. – In a stunning turn of events, James Bortolotti, 53, the former Chief Lending Officer of Bank-1, was sentenced today to 18 months in prison for his role in a fraudulent loan scheme that duped the Small Business Administration (SBA). U.S. Attorney Rachael A. Honig announced the sentence.
Bortolotti pleaded guilty before U.S. District Judge Michael Shipp for one count of knowingly making false statements to influence SBA actions. The sentence was imposed via videoconference, reflecting the ongoing impact of the COVID-19 pandemic on court procedures.
Documents and court statements revealed that Bortolotti exploited an SBA lending program designed to boost small business loans by providing a 75% guarantee. Despite knowing the application for a $3.75 million SBA-backed guarantee contained false information, he signed it off on February 29, 2012.
Bank-1 hired consultants to facilitate these applications, and Bortolotti’s actions resulted in a total of $5 million in loans to a business in Robbinsville, New Jersey. Alongside the prison term, he was ordered to pay $3.17 million in restitution to the SBA and sentenced to three years of supervised release.
Acting U.S. Attorney Honig praised the investigative efforts of various agencies, including the SBA-Office of Inspector General (SBA-OIG), FDIC-Office of Inspector General (FDIC-OIG), FBI, and FHFA-Office of Inspector General (FHFA-OIG). Assistant U.S. Attorney Lee M. Cortes Jr. represented the government in this case.
The sentence sends a strong message about the consequences of financial fraud and underscores the commitment to justice within federal law enforcement agencies.
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Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption|White Collar Crime
- Source: Official Source ↗
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