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Press Release

Ludlow Woman Pleads Guilty To Bank Fraud

For Immediate Release
U.S. Attorney's Office, District of Massachusetts

BOSTON - A Ludlow woman pleaded guilty yesterday in federal court in Springfield to bank fraud.

Beth Zastawny, 53, pleaded guilty to one count of bank fraud and three counts of money laundering. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Oct. 1, 2019.

Zastawny committed bank fraud in connection with a $4.2 million loan package for her Chicopee based company, Diecast Connections Company Inc. In January 2015, Blue Hills Bank, relying upon Zastawny’s false representations, extended the loans. Zastawny submitted fake financial statements to the bank, and she made false representations about Diecast's assets and liabilities to make it appear that Diecast's financial condition was much stronger than it was. After obtaining the loan proceeds, Zastawny paid back creditors who had not been disclosed to the bank, and the funds were used for purposes not called for in the loan agreement between Diecast and Blue Hills Bank. In July 2016, Blue Hills Bank foreclosed on the loan after Zastawny failed to meet the terms of the loan agreement, which resulted in a substantial loss for the bank.

Bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $1 million. Each money laundering count provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

 United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.

Updated May 22, 2019

Financial Fraud