Two Loan Brokers and One Bank Loan Officer Charged in Bank Fraud Scheme
Defendants agree to plead guilty to charging borrowers fees for fraudulent loan applications they submitted using fabricated information
BOSTON – Three men were charged yesterday, and have agreed to plead guilty, in connection with a scheme to defraud a Massachusetts-based bank and the U.S. Small Business Administration (SBA).
Ted Capodilupo, 56, of South Easton; Joseph Masci, 70, of Boston; and Brian Ferris, 43, of Braintree, were charged with one count each of conspiracy to commit bank fraud.
According to the charging documents, between 2015 and 2018, Capodilupo, Masci and Ferris agreed to defraud the bank and the SBA by submitting fraudulent loan applications to the bank, which administered the SBA’s small business express loan program, to secure bank loans guaranteed by the SBA. Specifically, it is alleged that Capodilupo and Masci, who operated a loan brokerage business, submitted dozens of fraudulent loan applications to the bank on behalf of borrowers ineligible for traditional business loans. These loan applications misrepresented, among other things, the identity of the real loan recipients and the businesses for which the loans were sought.
Capodilupo and Masci also allegedly fabricated federal tax forms submitted in support of the fraudulent loan applications, falsified applicant signatures and falsely indicated that no broker had assisted in preparing or referring the loan applications. Capodilupo and Masci allegedly charged borrowers fees for obtaining these fraudulent loans. It is alleged that Ferris, who worked as a loan officer at the bank, caused the bank to issue loans for which Capodilupo and Masci submitted applications and received a kickback from Capodilupo and Masci of approximately $500 per loan. The alleged scheme generated approximately $270,000 in fees for Capodilupo and Masci. Many of the loans that the bank issued as a result of the fraudulent applications ultimately defaulted, resulting in substantial losses to the bank.
The charge of conspiracy to commit bank fraud provides for a sentence of up to 30 years in prison; five years of supervised release; a fine of up to $1 million or twice the gross gain or loss, whichever is greater; restitution; and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; Patricia Tarasca, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), New York Region; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office; Stephen Donnelly, Acting Special Agent-in-Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection; and Amaleka McCall-Brathwaite, Special Agent in Charge of SBA OIG’s Eastern Region, made the announcement. Assistant U.S. Attorney David M. Holcomb of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.