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Loan Fraud Scheme Exposed in Massachusetts
BOSTON, Massachusetts – A brazen loan fraud scheme has been brought to justice, with three individuals sentenced for conspiring to defraud a bank and the U.S. Small Business Administration (SBA).
Ted Capodilupo, 58, of South Easton; Joseph Masci, 72, of Boston; and Brian Ferris, 45, of Braintree, were each sentenced by U.S. Senior District Court Judge Mark L. Wolf to one year and one day in prison and two years of supervised release.
Capodilupo and Masci were each ordered to pay restitution of $1,424,087, while Ferris was ordered to pay restitution of $1,236,251.
The defendants had previously pleaded guilty to one count each of conspiracy to commit bank fraud.
The illicit scheme operated between 2015 and 2018, during which time Capodilupo and Masci submitted dozens of fraudulent loan applications on behalf of ineligible borrowers.
Ferris, a loan officer at a Massachusetts-based bank, processed the fraudulent loan applications and in some cases fabricated federal tax forms in support of the applications.
As a result of the scheme, the bank issued loans that ultimately defaulted, resulting in substantial losses to the bank.
Acting U.S. Attorney Joshua S. Levy and other federal officials made the announcement, marking a significant victory in the fight against financial crimes.
Assistant U.S. Attorney David M. Holcomb of the Securities, Financial & Cyber Fraud Unit prosecuted the case, bringing the perpetrators to justice.
The sentencing of these individuals serves as a stark reminder of the consequences of engaging in loan fraud schemes and the importance of vigilance in protecting the financial system.
Key Facts
- State: Massachusetts
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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