Printer Friendly

FIVE DEFENDANTS CONVICTED IN SCHEME TO DEFRAUD THE BANK FOR SAVINGS, MALDEN, MA

 FIVE DEFENDANTS CONVICTED IN SCHEME TO DEFRAUD
 THE BANK FOR SAVINGS, MALDEN, MA
 BOSTON, Sept. 10 /PRNewswire/ -- Five defendants were convicted yesterday evening of conspiracy, bank fraud and false statement charges in connection with a scheme to defraud The Bank for Savings, Malden, Mass., a Massachusetts savings bank which failed on March 20, 1992 and was taken over by the Federal Deposit Insurance Corporation. U.S. Attorney A. John Pappalardo announced that Steven M. Rostoff, 48, of Middleton, Mass. was convicted on 72 counts; David R. Rostoff, 43, of Lynnfield, Mass., was convicted on 33 counts; James I. Harris, 48, of Peabody, Mass., was convicted of 53 counts; Dolores DiCologero, 51, of Revere, Mass., was convicted of 3 counts; and Paul J. Boniauto, 60, of
Malden, Mass., was convicted of 11 counts. The convictions follow a 25 day trial and five days of jury deliberations.
 U.S. District Judge Rya W. Zobel, who presided over the trial, set Nov. 18, 1992 for sentencing of each of the five defendants. They face maximum sentences of five years of incarceration and $250,000 fines on each of the conspiracy and bank fraud charges on which they were convicted and two years incarceration and a $250,000 fine on each of the false statement charges.
 David and Steven Rostoff and James I. Harris were principals in Patriot Real Estate Development Corporation (Patriot), a Peabody, Mass., real estate brokerage and development firm, which was active in the condominium conversion market throughout New England during the period December, 1985 to the spring of 1988. An 87 count indictment returned by a federal Grand Jury in Boston, on Jan. 8, 1992, charged that the Rostoffs and Harris executed a scheme to defraud The Bank for Saving, a Malden savings bank, in connection with the granting of over 500 loans, totalling $30 million, to persons purchasing condominiums being sold or marketed by Patriot. The scheme involved representations to the bank that at least a 10 percent down payment was made on each condominium purchase, when, in fact, the borrowers were making no down payment and merely paying closing costs.
 DiCologero was an assistant vice-president at the bank and the former head of the mortgage loan department. Evidence at the trial showed that she received referral fees totalling over $13,000, made payable to her husband, in connection with the referral of customers to Patriot. Her son and daughter-in-law were also hired by Patriot to do appraisal and clerical work and received payments totalling approximately $35,000. In July, 1987 Dicologero's husband purchased a condominium for which no down payment was made, although the settlement statement showed a $7,700 deposit having been made.
 Boniauto was the closing attorney, representing the bank, in connection with several hundred of these loans. The evidence at trial showed that he prepared the settlement statements and other documents relating to these loans and that he purchased two condominiums in July, 1987, without making cash down payments. Boniauto argued that he had a barter arrangement with the Rostoffs in which he reduced his legal fees for certain other legal work he performed in return for credit toward down payments on the condominiums he purchased.
 U.S. Attorney Pappalardo said the case evidences the efforts of the U.S. Attorney's Office and the FBI to investigate and vigorously prosecute allegations of fraud involving federally insured financial institutions. Pappalardo thanked the FDIC, Division of Liquidation, Franklin, Mass., for its cooperation in the prosecution of this case.
 The case was investigated by Special Agents assigned to the Boston office of the FBI and presented to the Grand Jury by Assistant U.S. Attorney Robert J. Lynn. Assistant U.S. Attorneys Peter A. Mullin and Jonathan L. Kotlier prosecuted the cashusetts IN: SU:


CH -- NE014 -- 8205 09/10/92 16:42 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 10, 1992
Words:635
Previous Article:NATION'S LARGEST HOMEWORK HOTLINE OPENS FOR NEW SCHOOL YEAR
Next Article:CHEMICAL BANKING $200 MIL 7.92 PERCENT PFD. STOCK RATED 'BBB+' BY FITCH --FITCH FINANCIAL WIRE--
Topics:


Related Articles
BANK OFFICER, LAWYER AND 3 DEVELOPERS CHARGED IN FRAUD SCHEME
CAMBRIDGE ATTORNEY INDICTED FOR BANK FRAUD
CHELSEA REAL ESTATE AGENT PLEADS GUILTY TO DEFRAUDING DIME SAVINGS BANK
TWO CHARGED IN SCHEME TO DEFRAUD COMFED SAVINGS BANK AT CHANCERY COURT IN LYNN, MASS.
DEVELOPER PLEADS GUILTY TO DEFRAUDING DIME SAVINGS BANK
SIX DEFENDANTS SENTENCED FOR DEFRAUDING DIME SAVINGS BANK OF NEW YORK IN CONNECTION WITH CONDOMINIUMS IN BROCKTON
CAMBRIDGE CITY COUNCILOR CONVICTED ON CONSPIRACY CHARGES, U.S. ATTORNEY'S OFFICE ANNOUNCES
Seven Indicted in Connection to $20 Million Loan Scheme, Reports U.S. Attorney.
Somerville Man Indicted for a String of Bank Robberies, Reports U.S. Attorney.
Two Plead Guilty to USDA Mislabeling/Repackaging and Tax Scheme, Reports U.S. Attorney.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters