Braintree man, two others charged in federal bank fraud conspiracy case
BOSTON – A bank loan officer from Braintree is one of three men who has agreed to plead guilty in a scheme to defraud a Massachusetts-based bank and the U.S. Small Business Administration, prosecutors said.
Brian Ferris, 43, of Braintree; Ted Capodilupo, 56, of Easton; and Joseph Masci, 70, of Boston, were charged Tuesday with one count each of conspiracy to commit bank fraud.
Charging documents submitted by prosecutors allege that between 2015 and 2018, the three agreed to defraud the bank and the Small Business Administration by submitting fake loan applications. The bank, which was not named in a statement from the U.S. Attorney's Office, administered the Small Business Express Loan Program and the applications were used to secure bank loans guaranteed by the federal agency.
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Prosecutors allege 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 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 these fraudulent loans, prosecutors said.
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Ferris, who worked as a loan officer at the bank, caused the bank to issue the loans and was paid a kickback of approximately $500 per loan from Capodilupo and Masci, prosecutors said. The alleged scheme generated approximately $270,000, prosecutors said. Many of the loans that were made based on the fraudulent applications ultimately defaulted, resulting in substantial losses for the bank.
The charge of conspiracy to commit bank fraud carries 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. The sentences are imposed by a U.S. District Court judge based on federal sentencing guidelines and other statutory factors.
This article originally appeared on The Patriot Ledger: Federal bank fraud charges against Braintree man, two others
