Former Loan Officer Sentenced to Over One Year in Prison for Million-Dollar Heloc Scheme

BOSTON – A former loan officer was sentenced in federal court in Springfield, Mass. for defrauding his employer, MassMutual Federal Credit Union, out of almost $1 million.

Brian Socha, 45, of Brookfield, Mass., was sentenced by U.S. District Court Judge Mark G. Mastroianni to 18 months in prison, to be followed by two years of supervised release. Socha was also ordered to pay $902,541.15 in restitution for bank fraud. Socha admitted to defrauding MassMutual Federal Credit Union out of almost $1 million while he worked there as a loan officer.

Socha hacked into co-workers’ computers on over 20 occasions to covertly raise the credit limit and lower the interest rate to below market levels on the home equity line of credit (HELOC) on the home he owned with his wife. Over a period of six years, Socha increased the HELOC credit limit from $135,500 to $995,000 and adjusted the HELOC interest rate from 7.25% to 1.99%. Socha spent the stolen funds on his personal enjoyment and lifestyle.

United States Attorney Leah B. Foley and Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation Boston Division made the announcement. Assistant U.S. Attorney Caroline Merck of the Springfield Office is prosecuted the case.