Husband and wife from Longmeadow arrested on fraud charges
LONGMEADOW, Mass. (WGGB/WSHM) - A Longmeadow couple has been arrested for allegedly defrauding commercial lenders out of hundreds of thousands of dollars in a real estate scheme that involved property loan agreements.
The FBI out of Boston and the MA U.S. Attorney’s Office made the announcement in a release sent to Western Mass News Thursday afternoon.
Louis Masaschi, 57, and Jeanette Norman, 56, have been indicted by a Federal Grand Jury.
We’re told the husband and wife real estate developers were taken into custody on Tuesday in connection to allegations that they conspired to commit loan fraud. They are accused of providing false and fraudulent rent rolls and forged lease agreements for properties located in Springfield, East Longmeadow, and Enfield, CT.
They appeared in Federal Court in Springfield on charges of Conspiracy to Committed Wire Fraud (1 Count), Wire Fraud (2 Counts), and Aggravated Identity Theft (1 Count).
Both were released with conditions.
“According to the indictment, Masaschi and Norman were partners in dozens of limited liability companies through which they owned primarily commercial and some residential property in Western Massachusetts, Connecticut and elsewhere,” the U.S. Attorney’s Office said before adding, “It is alleged that Masaschi and Norman conspired with each other and others to fraudulently obtain loans for their companies from financial institutions and commercial lenders by providing materially false, fictitious and fraudulent financial information.”
We’re told after they obtained the loans, they allegedly made some payments or no payments at all, ultimately defaulting on them.
This cost a number of financial institutions hundreds of thousands of dollars.
“Masaschi and Norman obtained a $350,000 loan for JLL Realty Developers, LLC ...a $765,000 loan to JLL Realty Developers, LLC ... (and) a $875,000 loan for 79 Enfield Realty, LLC,” the release from U.S. Attorney, Joshua Levy’s Office stated.
Allegedly the husband and wife cross-collateralized and cross-defaulted on a loan connected to the mortgage of a residence in Springfield. The pair then allegedly were able to secure a second mortgage on two residences in East Longmeadow.
The U.S. Attorney’s Office reports the couple used the $875,000 loan they obtained, to pay off an outstanding loan from another financial institution, which was only 45 days from maturing.
As part of the scheme, authorities say the husband and wife allegedly provided fraudulent rent rolls, forged tenant signatures and inflated lease amounts and rental terms.
If convicted, Masaschi and Norman could face years in jail.
The charge of Conspiracy to Committed Wire Fraud provides for a sentence of up to 5 years in prison with 3 years of supervised release and a fine of up to $250,000 or twice the gross gain or loss. The charges of Wire Fraud each provide for a sentence of up to 20 years in prison, 3 years of supervised release and a fine of up to $250,000 or twice the gross gain or loss. The charge of Aggravated Identity Theft provides for a mandatory sentence of 2 years in prison to be served consecutively to any other sentence imposed.
The couple are next scheduled to appear in U.S. District Court on July 24th.
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