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Justice News

Department of Justice
U.S. Attorney’s Office
Northern District of Iowa

FOR IMMEDIATE RELEASE
Wednesday, November 28, 2018

Former Business Owner from Marion Sentenced to Over Two Years in Prison for Bank Fraud

Bank Lost Over $850,000 as a Result of a Two-Year Long Fraud

A man who previously operated a freight business and created fake documents for his bank was sentenced today to more than two years in prison.

David Giannetto, age 63, from Marion, Iowa, received the prison term after a May 23, 2018, guilty plea to one count of bank fraud.

In a plea agreement, Giannetto admitted that he produced numerous fraudulent invoices that he provided to his bank in order to continue to receive financing to operate his business.  Giannetto created fake invoices purporting to show he had performed work for various customers and then sold those invoices to his bank to secure his financing.  Information at sentencing showed that Giannetto submitted more than 600 fraudulent invoices in a two-year period.  As a result, the bank loaned him more than $850,000 that he was unable to repay before closing his business and declaring bankruptcy.

Giannetto was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.  Giannetto was sentenced to 27 months’ imprisonment.  He was ordered to make $872,065 in restitution his bank.  He must also serve a five-year term of supervised release after the prison term.  There is no parole in the federal system.  Giannetto was released on the bond previously set and is to surrender to the United States Marshal on December 31, 2018.

The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Bureau of Investigation.  Court file information at https://ecf.iand.uscourts.gov/.  The case file number is 18-cr-20.

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Topic(s): 
Financial Fraud
Component(s): 
Updated November 29, 2018