FORMER EXECUTIVE SECRETARY OF THE TOWN OF ARLINGTON PLEADS GUILTY TO CHARGES OF BANK AND MAIL FRAUD
FORMER EXECUTIVE SECRETARY OF THE TOWN OF ARLINGTON
PLEADS GUILTY TO CHARGES OF BANK AND MAIL FRAUD
BOSTON, Aug. 13 /PRNewswire/ -- The former executive secretary of the town of Arlington, pleaded guilty today to charges of bank fraud and mail fraud in connection with schemes to obtain loans from a bank and a mortgage company.
U.S. Attorney A. John Pappalardo announced that Frederick E. Pitcher of 59 Beverly Rd., Arlington, pleaded guilty to charges of bank fraud and mail fraud in a hearing today before U.S. District Judge Joseph L. Tauro. A federal prosecutor informed Judge Tauro that in 1988, Pitcher and James H. Kearns obtained a $790,000 loan from Winter Hill Federal Savings Bank of Somerville, Mass., and 10 loans totalling $770,000 from Citicorp Mortgage, Inc. of St. Louis, Mo. The prosecutor stated that the loans were used by Pitcher and Kearns for the purchase of 20 condominium units at the Old Colony Lane Complex in Arlington, Mass. The condominiums were purchased for $110,000 each, for an aggregate price of $2.2 million.
According to the prosecutor, Pitcher and Kearns executed schemes to defraud Winter Hill and Citicorp by providing false information in connection with loan applications. The prosecutor asserted that Pitcher and Keanrs falsely stated in various documents that deposits totalling $495,000 had been paid toward the purchase of the 20 units, when in fact no deposits were paid. Additionally, Pitcher and Kearns concealed from the financial institutions the existence of second mortgages given by them to Old Colony's developers in lieu of cash deposits. Finally, the prosecutor stated that Pitcher provided false and inflated information about his income on various loan documents.
With respect to this latter charge, the prosecutor stated that on various documents Pitcher represented that between 1986-1988 he earned between $60,000-$70,000 per year as an officer of J.J. Mudge and Sons Moving Company. In fact, Pitcher had no earnings from J.J. Mudge and Sons Moving Company. To compound the deception, Pitcher provided the financial institutions with forged letters purporting to verify his income from J.J. Mudge and Sons Moving Company. Moreover, Pitcher provided Citicorp Mortgage with what purported to be copies of tax returns for 1986 and 1987. These "returns" were false because they contained the false J.J. Mudge and Sons Moving Company earnings information, and because Pitcher did not actually file returns for those years with the Internal Revenue Service.
All loans which are the subject of this case went into default. Winter Hill suffered a loss of $451,737.06, and Citicorp Mortgage suffered a loss of $426,147.28.
Pitcher is the third person to be charged with defrauding financial institutions in connection with the purchase of condominiums at Old Colony Lane. On June 3, 1992, attorney Perry F. Bedinger of the Cambridge law firm Ferraro and Walsh pleaded guilty to bank fraud. On July 21, 1992 James H. Kearns, a retired Arlington Police Officer and Pitcher's partner in these transactions, was separately indicted on similar charges of bank fraud and mail fraud. He is currently awaiting trial on these charges.
Judge Tauro scheduled sentencing for Oct. 8, 1992. Pitcher faces up to 10 years imprisonment, and a fine of $500,000.
This case was investigated by Special Agents of the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Mark W. Pearlstein of Pappalardo's Economic Crimes Unit.
The investigation is continuing.
/CONTACT: Press Officer, U.S. Attorney's Office, 617-223-9445/ CO: U.S. Attorney's Office ST: Massachusetts IN: SU:
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