Steven D. Griffin, Bank Fraud, Vermont 2016

GRIMY TIMES EXCLUSIVE: Former CFO of Berlin, New Hampshire-Based Business Sentenced to 24 Months of Home Confinement for Multi-Million Dollar Bank Fraud Scheme.

Steven D. Griffin, 59, of Berlin, New Hampshire, was sentenced yesterday by Chief Judge Christina Reiss to 24 months of home confinement as part of a five-year term of supervised release. Griffin was also ordered to pay $500,000 in restitution.

As part of the sentencing, Griffin admitted to submitting or causing to be submitted inflated figures for assets of Isaacson Structural Steel, Inc., including inventory, to Passumpsic Savings Bank, and other banks participating in loans totaling over $12 million, including a $2 million loan guaranteed by the Small Business Administration in late 2010.

Griffin was part owner and Vice President and CFO of ISSI, which before its bankruptcy was one of the largest businesses in the North Country. ISSI fabricated steel used in commercial construction. It entered into construction contracts to provide not only the steel for commercial buildings but also to provide subcontractor services, principally the erection of the steel.

According to court records, between August 2007 and April 2011, ISSI officers regularly submitted false and inflated figures to the banks regarding the value of ISSI’s assets. ISSI submitted these false statements about assets in borrowing base certificates and financial statements. ISSI regularly inflated its assets by a million dollars or more.

Griffin was convicted of making a false statement to a financial institution. The court imposed a lengthy period of home confinement due to Griffin’s health, which he cited as a mitigating factor in his sentencing. The United States is represented in this matter by Assistant U.S. Attorneys Paul Van de Graaf and Timothy Doherty.

The investigation, which is ongoing, is being conducted by the Federal Bureau of Investigation, the Office of Inspector General for the Federal Deposit Insurance Corp., and the Office of Inspector for the Small Business Administration. Sentencing for ISSI’s CEO, Arnold Hanson, is scheduled for November 23, 2016. Griffin’s case serves as a reminder of the consequences of corporate fraud and the importance of ensuring the integrity of financial institutions.

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