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LYNN NATIVE PLEADS GUILTY TO MAKING FALSE STATEMENT TO BAYBANK AND CONFED

 LYNN NATIVE PLEADS GUILTY TO MAKING FALSE STATEMENT
 TO BAYBANK AND CONFED
 BOSTON, May 13 /PRNewswire/ -- A Lynn, Mass., native pleaded guilty yesterday in Federal District Court to making false statements to BayBank and ComFed Savings Bank in connection with six loans.
 U.S. Attorney A. John Pappalardo announced that Paul Peterson pleaded guilty to six false statements counts yesterday before Judge Walter Jay Skinner.
 During the plea hearing, a federal prosecutor stated that Peterson purchased six condominiums in the Spring and Summer of 1989 at Claremont Arms, Claremont, N.H. Claremont Arms was developed by Sachem Associates, a partnership owned by William Lilly. In connection with his condominium purchases, Peterson received four loans from BayBank and two from ComFed totalling $293,000. The federal prosecutor stated during the plea hearing that Peterson made false statements in his loan documents about the amount of his down payments, his assets and his employment history. Peterson purchased his condominiums for no money down and received money back at the loan closings instead of putting money down. As a result of Peterson's false statements, BayBank and ComFed made loans they would not otherwise have made, in violation of their underwriting guidelines. The federal prosecutor said that all six of Peterson's condominiums are now in foreclosure.
 Pappalardo said that Peterson is the sixth person to be convicted in connection with the Claremont Arms development. Judge Skinner scheduled Peterson's sentencing for June 15, 1992. At sentencing, Peterson faces a maximum of two years imprisonment and a $250,000 fine on each of the six counts.
 The case was investigated by the Boston Office of the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Margaret R. Hinkle of the Economic Crimes Division. Pappalardo thanked the Boston Office of the Office of Thrift Supervision ("OTS") for its assistance in the prosecution of this case.
 -0- 5/13/92
 /CONTACT: Press Officer in U.S. Attorney's Office, 617-223-9445/ CO: U.S. Attorney's Office ST: Massachusetts IN: SU:


DD -- NE010 -- 9793 05/13/92 14:53 EDT
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Publication:PR Newswire
Date:May 13, 1992
Words:341
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