A former Massachusetts-based certified public accountant (CPA) was sentenced to six months in federal prison for her role in a $19 million fraud scheme involving commercial properties.
Christine Gendron was also ordered to pay $392,607 in restitution. After her release from prison, Gendron will be required to spend six months in home confinement.
According to the charges brought against her, Gendron was a financial manager for JLL Realty Developers LLC (JLLRD), a limited liability company for which her sister, Jeanette Norman, and brother-in-law, Louis R. Masaschi, served as partners. Masaschi and, allegedly 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.
Gendron conspired with Masaschi, and allegedly Norman, to defraud various financial institutions and a commercial lender by providing fraudulent financial information, including false rent rolls and forged lease agreements, to obtain loans for their companies. After receiving the loans, Masaschi, and allegedly Norman and their companies made some or no payments and ultimately defaulted on the loans, causing substantial losses to the financial institutions and commercial lenders totaling more than $19 million.
Gendron pleaded guilty to one count of conspiracy to commit bank fraud. Last month, Masaschi was sentenced to four years in prison, to be followed by three years of supervised release. Masaschi was also ordered to pay $18,203,030 in restitution. Norman pleaded guilty and is scheduled to be sentenced on Aug.11.
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