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ADDITIONAL CHARGES FILED IN CONNECTION WITH DEVELOPMENT OF EAST BOSTON GUMBALL FACTORY

 BOSTON, Jan. 12 /PRNewswire/ -- A second Information was filed today by the U.S. Attorney's Office in Boston in connection with a conspiracy to defraud four lenders to provide mortgages for the purchase of condominiums in East Boston, Mass.
 U.S. Attorney A. John Pappalardo announced that Aleta Marrocco, 26, of Belmont, Mass., was charged in a one-count Information filed today. The Information charges Marrocco with conspiracy to commit mail fraud.
 The Information charges Marrocco for her role in a conspiracy related to the sale of condominiums in the so-called Gumball Factory Building located at 130-150 Orleans Street, East Boston. Marrocco was an employee of Monmar Investment Corporation. Monmar was the sales agent for condominiums in the Gumball Factory Building.
 The illegal scheme consisted of a plan whereby Marrocco and others would sell condominiums in the rehabilitated Gumball Factory Building and would fraudulently obtain financing for the buyers of the units. Marrocco and others would falsely inform mortgage companies that the buyers had made a substantial cash downpayment on the condominiums. In fact, most if not all of the downpayment was never paid. Instead, a secret second mortgage was granted by the seller but not disclosed to the lender, or in some instances, the borrower never made the deposit that was represented to the banks. In addition, Marrocco and her co- conspirators knowingly prepared false and fraudulent mortgage applications for buyers of condominiums in the Gumball Factory Building, which allowed buyers to qualify for mortgages they otherwise would be unable to obtain.
 Pappalardo stated his office is continuing to investigate and prosecute individuals who perpetrate fraud on mortgage lenders. The United States Attorney confirmed that the investigation into the development and sale of condominiums in the Gumball Factory Building, and elsewhere in East Boston is continuing.
 This case was investigated by Special Agents of the Boston office of the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Lon F. Povich of the Economic Crimes Unit of the United States Attorney's Office.
 -0- 1/12/92
 /CONTACT: Press Officer, U.S. Attorney's Office, 617-223-9445/


CO: ST: Massachusetts IN: SU:

TM -- NE021 -- 4243 01/12/93 18:03 EST
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Publication:PR Newswire
Date:Jan 12, 1993
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