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Press Release

Ludlow Woman Sentenced for Bank Fraud

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

BOSTON – A Ludlow woman was sentenced today in federal court in Springfield for bank fraud.

Beth Zastawny, 53, was sentenced by U.S. District Court Judge Mark G. Mastroianni to one day in prison and three years of supervised release.  In the first year of supervised release, the defendant will be subject to home confinement.  In May 2019, Zastawny pleaded guilty to one count of bank fraud and three counts of money laundering.

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 made false representations about Diecast’s assets and liabilities in order to make it appear that Diecast’s financial condition was much stronger than it actually 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.

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 prosecuted the case.

Updated January 7, 2020

Financial Fraud