BOSTON, Massachusetts – Three men have been charged with defrauding a Massachusetts-based bank and the U.S. Small Business Administration (SBA) in a scheme to secure bank loans guaranteed by the SBA.
Ted Capodilupo, 56, of South Easton; Joseph Masci, 70, of Boston; and Brian Ferris, 43, of Braintree, were charged with one count each of conspiracy to commit bank fraud.
According to the charging documents, between 2015 and 2018, Capodilupo, Masci and Ferris agreed to defraud the bank and the SBA by submitting fraudulent loan applications to the bank, which administered the SBA’s small business express loan program. The loan applications misrepresented the identity of the real loan recipients and the businesses for which the loans were sought.
Capodilupo and Masci allegedly fabricated federal tax forms submitted in support of the fraudulent loan applications, falsified applicant signatures and falsely indicated that no broker had assisted in preparing or referring the loan applications. Capodilupo and Masci allegedly charged borrowers fees for obtaining these fraudulent loans. Ferris, who worked as a loan officer at the bank, caused the bank to issue loans for which Capodilupo and Masci submitted applications and received a kickback from Capodilupo and Masci of approximately $500 per loan.
The alleged scheme generated approximately $270,000 in fees for Capodilupo and Masci. Many of the loans that the bank issued as a result of the fraudulent applications ultimately defaulted, resulting in substantial losses to the bank.
The charge of conspiracy to commit bank fraud provides for a sentence of up to 30 years in prison; five years of supervised release; a fine of up to $1 million or twice the gross gain or loss, whichever is greater; restitution; and forfeiture. The defendants have agreed to plead guilty.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Key Facts
- State: Massachusetts
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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