U.S. Attorney's Office Recovers $3.6 Million in Restitution for Financial Crime Victims

PHOENIX, Ariz. – The U.S. Attorney’s Office for the District of Arizona has returned over $3.6 million in restitution to the victims of fraud perpetrated by Joseph Nicholas Gagliano.

Gagliano, an Arizona resident, was sentenced in October 2013 to 30 months in prison following his conviction on one count of Conspiracy to Commit Bank Fraud. U.S. v. Joseph Nicholas Gagliano, CR 12-00364-PHX-GMS. Gagliano obtained Small Business Administration (SBA)-backed loans and loan modifications by providing false information on the loan documents about his identity, assets, and liabilities. Gagliano defaulted on the loans, resulting in substantial losses to the lenders and the SBA. As part of his sentence, the court ordered Gagliano to pay over $3.6 million in restitution.

After identifying Gagliano’s commercial dealings and assets, the U.S. Attorney’s Office pursued enforcement using its statutory judgment collection tools. Due to those efforts, Gagliano agreed to a payment agreement and the Office collected Gagliano’s restitution obligation in full. As a result, Gagliano’s crime victims, including the taxpayer supported SBA, have received full compensation for the harm caused by Gagliano’s scheme.

This debt was collected by the U.S. Attorney’s Office Financial Litigation Program (“FLP”). The FLP is responsible for collecting criminal monetary penalties, including fines and restitution, owed to federal crime victims. The FLP works to identify debtors’ assets and income and uses both federal and state law remedies to enforce collection from debtors’ non-exempt property.

Assistant U.S. Attorney Kevin Rapp, District of Arizona, Phoenix, handled the prosecution and Assistant U.S. Attorney Vincent Creta, District of Arizona, Phoenix, handled the financial litigation.  
 

CASE NUMBER:           CR 12-00364-PHX-GMS
RELEASE NUMBER:    2024-072-Gagliano

# # #

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.