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FORMER OWNER OF LOAN DEPOT FOUND GUILTY OF MORTGAGE INVESTMENT FRAUD

 BOSTON, Oct. 18 /PRNewswire/ -- The former owner of "The Loan Depot" mortgage brokerage business was found guilty today following a 14 day jury trial on mail fraud charges.
 A. John Pappalardo, U.S. Attorney, announced that William J. Camuti, 48, One Audubon Rd., Wellesley, Mass., was found guilty on 11 counts of having violated the mail fraud statute in connection with a program to market so-called "mortgage pools" to investors. U.S. District Judge William G. Young set Camuti's sentencing for Jan. 4, 1994.
 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, Mass., 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. The evidence further showed that Camuti never intended to collateralize repayment of investor monies with residential mortgages.
 At sentencing, Camuti faces a prison sentence of up to 55 years and a fine in the amount of up to $2.75 million.
 The case was investigated by Inspectors of the U.S.Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney William P. Stimson of Pappalardo's Economic Crimes Unit.
 -0- 10/18/93
 /CONTACT: Press Officer of the U.S. Attorney's Office, 617-223-9445/


CO: U.S. Attorney's Office ST: Massachusetts IN: SU:

JL -- NE020 -- 3629 10/18/93 17:48 EDT
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Publication:PR Newswire
Date:Oct 18, 1993
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