CONCORD – Performing United States Lawyer John J. Farley introduced that Joseph A. Foistner, 67, of Mont Vernon, was discovered responsible on Thursday of 4 counts of financial institution fraud, in addition to prices of wire fraud, cash laundering, and making misrepresentations throughout chapter proceedings. The decision was returned by Senior U.S. District Decide Paul Barbadoro on Thursday, December 23, 2021, following a two-week bench trial.
In accordance with displays and witness testimony in the course of the trial, Foistner used fraudulent means to use for over $8 million in loans from 5 totally different monetary establishments, laundered cash, and made materials misrepresentations throughout chapter proceedings between 2015 and 2018. Foistner, on the time of the scheme, was a licensed lawyer in Massachusetts. He didn’t have any paying shoppers and earned no earnings by way of his regulation agency. In an effort to acquire tens of millions of {dollars} in loans from a number of monetary establishments, Foistner supplied banks with deceptive paperwork that steered that he was working a profitable regulation agency. For instance, he claimed that he was a “seasoned lawyer” with worldwide shoppers and that his agency earned over 1,000,000 {dollars} in annual earnings. The truth is, all of the agency’s purported earnings was primarily based upon bogus, unpaid invoices the agency submitted to entities that the defendant managed, together with bankrupt entities. The defendant additionally made different false statements to acquire financial institution loans, together with mendacity about whether or not he was concerned as a celebration to any lawsuits and denying that he had an curiosity in different firms. He additionally falsely represented that he had a wage by mischaracterizing mortgage proceeds as a wage. In one of many financial institution fraud schemes, the defendant submitted false info to acquire a mortgage by claiming falsely that his spouse was incomes over $200,000 per yr as a paralegal. Every of the loans made to Foistner had been backed by both the Division of the Veterans Affairs or the Small Enterprise Administration.
The proof additional confirmed that Foistner dedicated a number of crimes throughout Chapter 7 chapter courtroom proceedings in 2017 and 2018. He made false representations by falsely denying that he held or managed property owned by others when he truly managed funds that had been held within the title of a enterprise. He additionally made false statements underneath oath by mendacity about what occurred to the proceeds of one of many fraudulent loans and mendacity about not understanding the placement of a bit of actual property that had been bought partly with funds he borrowed and had subsequently funneled into financial institution accounts not in his title.
Foistner is scheduled to be sentenced on April 4, 2022.
“Whereas nobody is entitled to commit fraud, this defendant’s crimes had been notably egregious as a result of they had been dedicated by an lawyer,” stated Performing U.S. Lawyer Farley. “The proof on this case demonstrated that Foistner engaged in a stunning sample of fraudulent and deceitful conduct to acquire tens of millions of {dollars} from monetary establishments and that he informed a number of lies in his efforts to additional his scheme and canopy his tracks throughout chapter proceedings. With this responsible verdict, Foistner lastly is being held accountable for his prolonged sample of mendacity and manipulation. I’m grateful to the entire federal brokers and prosecutors who labored exhausting to analyze and prosecute this vital fraud case.”
“Joseph Foistner took benefit of applications that had been designed to assist veterans obtain dwelling possession, and small companies increase and develop. In fraudulently amassing tens of millions of {dollars}, his lies and deceit haven’t solely damage himself, however each citizen whose tax {dollars} help these federally funded applications,” stated Joseph R. Bonavolonta, Particular Agent in Cost of the FBI Boston Division. “The FBI is decided to work with our companions to carry anybody who commits such fraud accountable.”
This matter was investigated by the Federal Bureau of Investigation, the Workplace of Inspector Normal of the Division of Veterans Affairs, and the Workplace of Inspector Normal of the Small Enterprise Administration. The case was prosecuted by Assistant U.S. Attorneys Charles L. Rombeau, Seth R. Aframe and Particular Assistant U.S. Lawyer Alexander S. Chen. Former Assistant U.S. Lawyer Robert Kinsella, Assistant U.S. Attorneys John S. Davis and Kasey Weiland beforehand labored on this matter.
###
