FORMER SOUTH HADLEY RESIDENT CONVICTED OF MORTGAGE FRAUD
SPRINGFIELD, Mass...A former resident of South Hadley was convicted today in federal court of defrauding lending institutions in connection with a multi-million dollar loan fraud scheme that operated in Massachusetts and Florida between 2004 and 2007.
JASON FOISY, 34, of Port Orange, FL and formerly of South Hadley, Mass., pleaded guilty before U.S. District Judge Michael A. Ponsor to one count of conspiracy, two counts of wire fraud, one count of bank fraud and one count of money laundering.
At today’s plea hearing, the prosecutor told the Court that had the case proceeded to trial the Government’s evidence would have proven that FOISY was part of a multi-million mortgage fraud and bank fraud conspiracy involving more than 100 real estate transactions in Florida and Western Massachusetts and multiple business lines of credit originating out of a West Springfield Bank. The prosecutor said that the scheme involved an aggregate loan value of at least $75 million dollars and that the vast majority of the loans went into default. The prosecutor said that the scheme reached its pinnacle in October 2006, when FOISY and co-defendant James June, started construction of a $6.6 million waterfront home in an exclusive area of Fort Lauderdale.
The government described co-defendant JUNE as the orchestrator of the scheme with FOISY assisting in its execution in a variety of ways including bringing friends and family members into the scheme; accompanying friends and family members on house hunting trips; manufacturing false bank statements; running errands; attending closings; and otherwise keeping the scheme going.
Judge Ponsor scheduled sentencing for October 21, 2011.
FOISY faces up to 30 years in prison on each of the wire fraud and bank fraud counts to be followed by five years of supervised release and a $250,000 fine; up to 10 years in prison on the money laundering count to be followed by three years of supervised release and a $250,000 fine; and up to five years imprisonment on the conspiracy count to be followed by three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and William Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation - Boston Field Office made the announcement today. The South Hadley Police Department, Massachusetts State Police and the Northwestern District Attorney’s Office also assisted with the investigation. The case is being prosecuted by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Branch Office Unit.
Receive information regarding those charged in the Boston Marathon bombing cases.
Giving Back to the Community through a variety of venues & initiatives.
Financial Fraud Enforcement Task Force
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Stay Connected: Visit us on Twitter