SPRINGFIELD, Mass.—A former accountant has pleaded guilty in federal court to participating in a bank fraud conspiracy that defrauded financial institutions—including at least two credit unions—of millions of dollars by securing commercial mortgages using falsified documents, MassLive reported.
Christine Gendron, 61, entered her guilty plea to one count of conspiracy to commit bank fraud before U.S. District Judge Mark G. Mastroianni, according to the U.S. Attorney’s Office. She is scheduled to be sentenced on September 30.
Gendron, whose CPA license expired in June 2023, identified herself as the “resident CPA” of JLL Realty Developers, according to a statement of facts accompanying her plea agreement. She is the sister of Jeannette Norman, one of the company’s partners. Norman, a former Goldman Sachs vice president, is also facing federal charges in a case that remains ongoing, MassLive said.
The other JLL partner, Gendron’s brother-in-law Louis Masaschi, pleaded guilty in April to wire fraud, conspiracy to commit wire fraud, and aggravated identity theft. His sentencing is set for July, MassLive said.
According to court documents, beginning in May 2016, Gendron submitted fraudulent documents—including rent rolls and falsified profit-and-loss statements—to obtain commercial loans for properties in Connecticut and Western Massachusetts.
The documents “contained inflated monthly rental payments and lease expiration dates ... that bore the signatures of Masaschi or Norman, as well as the forged signatures of the tenants,” says the statement of facts, MassLive reported.
Prosecutors wrote in court documents that JLL Realty tried to obtain $60 million in commercial loans, although some financial institutions did not issue the money.
“After receiving these loans, Masachi, Norman, and their companies made some or no payments and ultimately defaulted on the loans, causing substantial loses to the commercial Lenders,” documents state.
Altogether, the financial institutions lost $19.3 million, MassLive said.
Among the affected financial institutions impacted by the scheme is the $2.3-billion Workers Credit Union, which loaned JLL Realty $11.5 million in 2018 after the group put up an East Longmeadow property as collateral. Ultimately, the Littleton-based financial institution lost $2 million, according to the statement of facts, Mass Live said.
In 2017, $740-million Springfield-based Freedom Credit Union lent the group $6.25 million based on the collateral of three properties in Springfield and ended up losing $5.37 million, according to court documents. A year later, JLL Realty tried to obtain a $400,000 loan from the credit union, but was unsuccessful, Mass Live said.