The U.S. Attorney’s Office for the District of Massachusetts announced the arrest and indictment of a couple in connection with a scheme to defraud commercial lenders by providing fraudulent documents.
Louis R. Masaschi, 57, and his wife Jeanette Norman, 56, were indicted by a federal grand jury on one count of conspiracy to committed wire fraud, two counts of wire fraud and one count of aggravated identity theft. 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.
Masaschi and Norman were accused of fraudulently obtaining loans for their companies from financial institutions and commercial lenders by using fraudulent financial information including false rent rolls and lease agreements. After receiving the loans, Masaschi and Norman allegedly made some or no payments, thus defaulting on the loans and bringing substantial losses to the financial institutions and commercial lenders. The couple reportedly obtained approximately $2 million through their scheme in 2018 and ceased payments completely in early 2020.
The defendants were arrested on May 23 and released on conditions following an appearance in federal court in Springfield, Massachusetts, on July 24. They face up to five years in prison if convicted for conspiracy to committed wire fraud, up to 20 years for the wire fraud charges and up to two years for aggravated identity theft.