BOSTON, MA – Ted Capodilupo, Joseph Masci, and Brian Ferris faced sentencing today for orchestrating a scheme to deceive a local bank and the U.S. Small Business Administration (SBA), causing significant financial fallout.
The individuals, connected through a loan brokerage and a Massachusetts-based bank, conspired between 2015 and 2018 to submit false loan applications to secure bank loans under the SBA’s express loan program.
Particularly, Capodilupo and Masci crafted multiple fraudulent applications for clients ineligible for conventional business loans. The applications concealed true identities of loan beneficiaries and misrepresented the businesses involved.
Furthermore, the duo forged applicant signatures and denied any broker involvement in the loan process, while charging the borrowers hefty fees for the fraudulent loan facilitation.
Ferris, stationed as a loan officer at the bank, processed these deceitful applications, even concocting federal tax documents to bolster some applications. For each fraudulent loan processed, Ferris received a kickback of around $500 from Capodilupo and Masci, culminating in approximately $270,000 in fees for the latter two. This fraudulent activity led to numerous loan defaults, inflicting substantial losses on the bank.