A pair of Massachusetts-based fraudsters have pleaded guilty for their roles in a scheme to defraud commercial lenders by providing false rent rolls and forged lease agreements on properties in Massachusetts and Connecticut.
According to court documents, Louis R. Masaschi and his wife Jeanette Norman, were partners in dozens of limited liability companies, including JLL Realty Developers LLC, through which they owned primarily commercial and some residential properties in Western Massachusetts, Connecticut and elsewhere. Masaschi, and allegedly Norman, conspired with each other and others to fraudulently obtain loans for their companies from financial institutions and commercial lenders by providing fraudulent financial information – including false rent rolls and forged lease agreements.
After receiving the loans Masaschi, and allegedly Norman, made some or no payments and ultimately defaulted on the loans, causing substantial losses to the financial institutions and commercial lenders. According to Masaschi’s plea agreement, he fraudulently obtained or sought to obtain approximately $60 million in loans and caused a total loss of $19.3 million between May 2016 and November 2018.
Norman’s sister, Christine Gendron, a certified public accountant who worked as the financial manager for JLL Realty Developers, conspired with Masaschi and Norman in this scheme. Gendron pleaded guilty to one count of conspiracy to commit bank fraud.
Masaschi pleaded guilty to one count of conspiracy to committed wire fraud, two counts of wire fraud, and one count of aggravated identity theft. Norman has pleaded not guilty and is pending trial in October.
