| From: [email protected] (UPI)
Newsgroups: clari.local.massachusetts,clari.local.new_england
Subject: Four indicted in real estate fraud case
Keywords: criminal proceedings, legal, real estate, construction,
bank failures, financial services
Date: Tue, 22 Sep 92 8:45:08 PDT
Location: massachusetts, new england states
ACategory: regional
Slugword: ma-fraud
Priority: regular
Format: regular
ANPA: Wc: 309; Id: z2933; Sel: manla; Adate: 9-22-1145aed
Codes: &nlarma., &bcrrxb., &fknrxb., tbza....
Lines: 29
BOSTON (UPI) -- Four Massachusetts men have been charged in a real
estate loan fraud of more than $30 million involving a Cape Cod bank.
Federal prosecutors said Tuesday the conspiracy and fraud charges are
connected to the collapse of the Barnstable Community Federal Credit
Union, formerly located at Hyannis, Mass.
U.S. Attorney A. John Pappalardo identified the suspects as 47-year-
old Richard Mangone of Norwell, 58-year-old attorney Robert Cohen of
Newton, 48-year-old Ambrose Devaney of Rockport, and 50-year-old James
Smith of Barnstable.
They were named by a federal grand jury in a 43-count indictment
charging conspiracy, bank fraud, unlawful receipt by bank officers and
employees, and money laundering.
Pappalardo said the charges stem from schemes to obtain real estate
loans from Barnstable Credit Union and the Digital Employee's Federal
Credit Union, located in Maynard.
Mangone and Smith were officers of the Barnstable Credit Union and
Cohen was an attorney who prepared documents and conducted loan closings
for the facility.
In addition, Mangone was president of the Digital Credit Union and
Cohen was on the supervisory committee of Digital Credit Union. Devaney
was a real estate developer who participated with Mangone and Smith in
numerous trusts and partnership arrangements through which real estate
loans were obtained. He also allegedly shared proceeds from the loans
with Smith and Mangone.
The indictment alleges that from 1985 until the Barnstable Credit
Union was declared insolvent and placed under conservatorship... the
defendants created various real estate trusts in order for Mangone,
Smith and Devaney to obtain multi-million dollar loans for purported
real estate developments on Cape Cod and in Rhode Island and Maine.
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