A former loan officer at the $604 million Consumer'sCreditUnion inWaukegan, Ill. was sentenced in federal court last week to 35months in prison and ordered to pay restitution for a scheme thatinvolved $1.4 million in fraudulent loans, according to the U.S.Attorney's Office in Milwaukee, Wisc.
|James Scalzo, 46, who also worked as a loan officer at Fox RiverState Bank in Burlington, Wisc., pled guilty to money-launderingand bank fraud charges earlier this year after admitting in a pleaagreement that he originated and approved fraudulent loans at bothFIs in 2008-2009, according to a statement from the U.S. Attorneyfor the Eastern District of Wisconsin.
|Scalva was ordered to serve three years supervised releasefollowing his prison term and to pay $200 in special assessments,the press release said, with the terms of restitution to bedetermined at a later date.
|The U.S. Attorney's Office said Scalvo's actions caused personaland financial hardship to numerous victims, including a couplewhose home was pledged as collateral for a fraudulent loan and thenallowed to go into foreclosure.
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