Forging Signatures To Obtain Fraudulent Mortgage Secured By Unwitting Elderly Couple's Home Among Scams That Land Loan Officer 35-Month Sentence In Federal Slammer

In Milwaukee, Wisconsin, the Journal Sentinel reports:

• A commercial loan officer was sentenced to 35 months in federal prison [] for creating and approving multiple fraudulent loans while working at financial institutions in Burlington and northern Illinois
  
  James Scalzo, 46, was also ordered by U.S. District Court Judge Lynn Adelman to serve three years of supervised release following his prison term. Restitution will be computed later.
  
  Scalzo pleaded guilty in January to bank fraud and money laundering for creating more than $1.4 million in phony loans while working at Fox River State Bank in Burlington and Consumer's Credit Union in Round Lake Beach, Ill.
  
  The bulk of the fraudulent loans — or nearly $1 million worth — were written while he was at Fox River State Bank, records show. The loans were written using the names of people — including some of Scalzo's relatives — who were not qualified to receive the funds or did not know Scalzo was using their names on loan documents.
  
  The scheme ran from April 2008 until October 2009. Money generated from the fraudulent loans went into Scalzo's accounts or was used to make payments in order to keep scheme afloat.
  
  Among Scalzo's victims was an elderly couple whose home he used as collateral for a fraudulent loan by forging the signatures of the owners. The home later went into foreclosure.

Source: James Scalzo sentenced to 35-month prison term for bank fraud (Former commercial loan officer created more than $1.4 million in phony loans).