FORMER OWNER OF LOAN DEPOT SENTENCED TO PRISON FOR MORTGAGE INVESTMENT FRAUD, U.S. ATTORNEY'S OFFICE ANNOUNCES
BOSTON, Feb. 28 /PRNewswire/ -- The former owner of "The Loan Depot" mortgage brokerage business was today sentenced to a lengthy jail term upon his October 1993 conviction on mail fraud charges, the U.S. Attorney's Office announced. Donald K. Stern, United States Attorney, announced that William J. Camuti, 49, formerly of One Audubon Road, Wellesley, Massachusetts, was sentenced to a 116-month term of incarceration on 11 counts of having violated the mail fraud statute in connection with a program to market so-called "mortgage pools" to investors. United States District Judge William G. Young, the sentencing judge, also directed Camuti to pay his victims restitution in the total amount of $2,528,000. Camuti is the former owner of Capital Finance Corporation, which, under the name "The Loan Depot," conducted an extensively-advertised loan brokerage business in Randolph, Massachusetts during the 1980's and early 1990's. Loan Depot Service Corporation, a related entity, offered investment opportunities to persons wishing to place their funds in "mortgage pools" secured by real estate mortgages. The evidence at trial showed that, between February 1989 and December 1990, Camuti participated in a scheme whereunder individuals were asked to commit funds on security falsely claimed to consist of first or second mortgages obtained by "The Loan Depot" on single family or owner-occupied two family houses located in Massachusetts towns like Needham, Wellesley, Weston, Sudbury and Wayland. The evidence showed that more than 60 persons were induced to pay more than $3.8 million to Camuti or his companies. Camuti admitted on the witness stand that he never intended to collateralize repayment of investor monies with residential mortgages. In July of 1993, Camuti was found guilty following a jury trial in a federal court in Kansas on bank fraud and money laundering charges. He was sentenced in Kansas on Thursday, October 21, 1993 to a prison term of 54 months. The sentence imposed in Boston today is to run concurrently with the sentence previously imposed in Kansas. The Massachusetts case was investigated by Inspectors of the United States Postal Inspection Service and was prosecuted by Assistant United States Attorney William P. Stimson of Stern's Economic Crimes Unit. -0- 2/28/94 /CONTACT: Press Officer of the U.S. Attorney's Office, 617-223-9445/
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DJ -- NE023 -- 6045 02/28/94 18:16 EST EST electroshock therapy.