PITTSFIELD, Mass.–A local developer here is facing up to five years in federal prison after admitting he conspired with a vice president at Greylock FCU as part of a $4-million loan fraud scheme.
Jeffrey Pierce, 51, entered a plea of guilty in U.S. District Court in Springfield to a single count of conspiracy to receive money through transactions of a federal credit union with the intent to defraud, and making false statements to a federal credit union.
A statement issued by prosecutors said Pierce used five companies he owned to apply for a series of loans from at Greylock FCU for far more than could reasonably be repaid through receipts from those companies.
Also participating in the scheme was Michael Dicenzo, a former vice president of Greylock Federal, who signed off on the business loans in exchange for kickbacks. Dicenzo is scheduled to be sentenced in August, and has pleaded guilty to fraud, making false statements to federal officials and tax fraud.
Prosecutors said Discenzo also received the use of a house owned by a Pierce company, drove a BMW owned by one of Pierce's companies, and received more than $134,000 in cash from Pierce.
Under the scheme the payments made to Discenzo were disguised as payments made to Pierce’s wife.
Federal sentencing guidelines call for up to five years in federal prison, three years of supervised release and a fine of $250,000 for conviction.