Lengthy Islander sentenced in $3.2M financial institution mortgage scheme

Hearken to this text

A Lengthy Islander was sentenced in federal courtroom in Central Islip on Tuesday in a $3 million financial institution mortgage scheme, officers mentioned.

Gary Confredo, often known as “Gary Conte,” the previous operator of Goldstar Monetary Administration in Commack, was sentenced to 42 months in jail.

Confredo, of East Northport, had pleaded responsible in November of 2022 to a scheme involving defrauding Financial institution of America of greater than $3.2 million in loans and features of credit score that have been obtained beneath false pretenses, in accordance with the U.S. Legal professional’s Workplace for New York’s Jap District.

Confredo was ordered to pay greater than $1 million in restitution to Financial institution of America.

“The defendant’s scheme of submitting fraudulent purposes for industrial loans and features of credit score to Financial institution of America was filled with lies and deception, so with right now’s sentence the defendant learns a robust fact, that dishonest monetary establishments for private achieve can be punished and the price is important,” U.S. Legal professional Breon Peace mentioned in a written assertion.

“As a monetary guide, Confredo was a trusted member of the monetary trade. Nevertheless, as an alternative of appearing ethically, he used his place to submit fraudulent mortgage purposes on his shoppers’ behalf … [m]any of whom have been complicit on this scheme,” Daniel Brubaker, inspector-in-charge of the U.S. Postal Inspection Service, New York Division, mentioned in a written assertion. “Pushed by greed, Confredo and these co-conspirators induced Financial institution of America to lose hundreds of thousands of {dollars} in defaulted loans. These crimes have a far-reaching and long-lasting unfavorable impression on the monetary trade and the American public.”

Information present that between November 2016 and October 2019, Confredo and others conspired to submit fraudulent purposes for industrial loans and features of credit score to Financial institution of America on behalf of Goldstar shoppers. These shoppers had agreed to pay Confredo a portion of any mortgage that he secured on their behalf.

Officers mentioned that Confredo then submitted altered tax returns and financial institution statements that falsely inflated the shoppers’ incomes and property and allowed them to qualify for loans and features of credit score beneath Financial institution of America’s lending standards. Because of the scheme, Financial institution of America issued roughly $3.2 million in loans and features of credit score to Goldstar’s shoppers and sustained losses of roughly $1 million when these loans and features of credit score weren’t repaid.