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Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

2578.0. "U.S. Jury Convicts Richard Mangone - former DCU President" by ELMAGO::JMORALES () Tue Jul 13 1993 19:16

    			The Wall Street Journal
                        July 13, 1993
    		
       U.S. Jury Convicts 4 Massachusetts Men In $34 Million Fraud
       -----------------------------------------------------------
    
    	Four Massachusetts men, including a former president of
    	Digital Equipment Corporation's Credit Union (DCU), were
    	convicted in federal court here of a fraud conspiracy in
    	obtaining $34 million in loans from a now-defunct credit
     	union.
    	
    	Prosecutors said the case is the largest real estate fraud
    	at a federal credit union.
    	
    	Richard Mangone, Norwell; Robert Cohen, Newton; Ambrose Devaney,
    	Rockport, and James Smith, Barnstable, were found guilty of 
    	money laundering, bank fraud and conspiracy charges.  Prosecutors
     	said three of the men received loans from Barnstable Community
    	Federal Credit Union, of Hyannis, from 1985 to 1991 but concealed
    	the fact that they were the borrowers.  Barnstable was taken over
    	by federal regulators and dissolved in 1991.
    	
    	Mr. Mangone, who was president of the Digital Credit Union (DCU)
    	from 1983 to 1991 and a co-founder of Barnstable, was a central
    	figure in the conspiracy, prosecutors said.   He faces a maximum
    	16-year sentence.  Mr. Cohen, the former attorney for both the
    	Barnstable and the Digital Credit Unions, also faces a maximum
    	16-year sentence.
    	
    	Mr. Smith, a co-founder at Barnstable, and Mr. Devaney, a real
    	estate developer, faces sentences of a maximum 16 years and 
    	eight years, respectively.
    
    	Robert Keefe, and attorney for Mr. Devaney, said he may appeal the
    	veredict.  Attorneys for Messrs. Smith and Cohen said they plan
    	to seek a new trial on the grounds that their clients should have
    	been tried separately.  A spokesman for Mr. Mangone couldn't be
    	reached.
    
    	Paul Levenson, an assistant U.S. attorney, said that under the 
    	scheme, Messrs. Mangone, Devaney and Smith would apply for loans
    	from Barnstable under the names of trusts they controlled, Mr.
    	Cohen would then serve as the closing attorney on the loans,
    	"never revealing to the credit union that the real borrowers
    	were their own founders," said Mr. Levenson.
    
    	Prosecutors said the defendants used the loans to buy about 
    	$25 million in commercial real estate.
T.RTitleUserPersonal
Name		DateLines
2578.1Nit Pickin' first, then ratholingNASZKO::DISMUKEWANTED: New Personal NameWed Jul 14 1993 10:015
    Didn't they get the name wrong - I thought it was an entity of it's own
    not a sub of Digital...shouldn't it be Digital Credit Union (DCU)?
    
    -sandy
2578.2MU::PORTERthe past sure is tenseWed Jul 14 1993 10:255
They did, and so did you.

It's something more like "Digital Equipment Corporation Employees' Credit
Union".   Anyway, the full name names it clear that DEC owns the
employees, rather than that DEC owns the credit union.
2578.3CVG::THOMPSONRadical CentralistWed Jul 14 1993 10:314
    RE: .1 & .2 Officially I believe it's "Digital Employees Federal Credit
    Union"
    
    			Alfred
2578.4i'll try to get the exact name todaySTAR::ABBASIWed Jul 14 1993 11:475
    iam going today to get some spending money from the DCU branch here in ZKO,
    I'll ask the manager there what is the correct full name of the place and 
    will report here what it is.

    \nasser
2578.5Digital Employees' Federal Credit UnionELMAGO::JMORALESWed Jul 14 1993 12:506
    Nasser, I've got a business card of our Branch Manager, here in
    New Mexico.    Her Business Card says:
    
    Digital Employees' Federal Credit Union
2578.6where's the money?AIMHI::BARRYWed Jul 14 1993 13:294
    Let's see, 16 year max, with no previous convictions, a family man
    ,ties to the community, he'll get 4-6, with work release after 15 mos
    the furloughs and parole as an exemplary prisoner after 20 mos. All of
    this begs the question: Where's the Money.
2578.7But he gets free room and board (and whatever)NASZKO::DISMUKEWANTED: New Personal NameWed Jul 14 1993 14:0211
    Yes - I'd like to see restitution in these cases.  Look how many of
    these embezzlers "get away with it" and we end up paying for their
    crimes twofold - once to keep them in prison; once to cover the
    financial loss as in the S&L cases.  Bet he's got a nice house or two
    and maybe some recreational vehicles that would look nice with FSBO
    sign on them!!
    
    Oh well!  Justice!
    
    -sandy
2578.8pointer to DCU conferenceCVG::THOMPSONRadical CentralistWed Jul 14 1993 14:049
    This is all covered pretty well in the SMAUG::DCU conference. And it
    is a DCU not a Digital issue.

    However, as to where is the money? The DCU has offered a reward for
    information leading to the recovery of missing assets. Also, now that
    the criminal trial is over a number of civil suits, attempting to
    recover some money, will be able to start.

    		Alfred
2578.9It is OUR issue !!!!!!!!!!ELMAGO::JMORALESWed Jul 14 1993 14:3212
    Re: .8
    
    >>>>> It is a DCU, not a Digital issue.
    
    	Excuse me for not agreeing.
    
    	If you have direct deposit, something that Digital Equipment
    Corporation professes and encourages, it is a Digital issue.
    
    	Also, if some &%$3@@*^ are playing 'MONOPOLY' with MY MONEY (our
    money) it is our issue.
2578.10PASTA::SEILERLarry SeilerWed Jul 14 1993 14:599
Direct deposit can be to any bank, so that doesn't make this a "Digital
way of working" issue.  However, the DCU has been described as an
employee benefit, and Digital has spent and continues to spend money
to support the DCU in various ways.  So I think it's worth annoucning
major DCU issues (like status of the criminal and civil trials) over here.
But anyone who wants the details should look into the DCU notes file.

	Enjoy,
	Larry
2578.11please rephrase your statementDECWET::EVANSBruce Evans, DECwest Eng.Wed Jul 14 1993 15:0819
re: JMORALES .9

>>    	If you have direct deposit, something that Digital Equipment
>>    Corporation professes and encourages, it is a Digital issue.

  The comment made by CVG::THOMPSON was simply to join the conversation in
 the DCU notesconference, rather than drag that conversation into Digital.
 I agree.

>>    	Also, if some &%$3@@*^ are playing 'MONOPOLY' with MY MONEY (our
>>    money) it is our issue.

  I disagree -- it is a personal issue. You can choose to leave your money
 whereever you wish. If you truly feel uncomfortable with your money at DCU
 (whatever it stands for), then *transfer it* to a safer place.  That's what
 I do. I "vote" with my money. I do not care what others do with their
 money - it's theirs.

See you in DCU conference....  bwe