A former financial services operator has pled guilty to fraudulently obtaining more than $3 million in loans from a financial institution.
Gary Confredo, the former operator of Commack-based Goldstar Financial Management Corp pleaded guilty to committing bank fraud. Confredo pleaded guilty for his connection to a scheme to defraud Bank of America of more than $3.2 million in loans and obtain lines of credit under false pretenses, according to the Department of Justice.
According to court filings, between November 2016 and October 2019, Confredo conspired with others to submit fraudulent applications for commercial loans and lines of credit to Bank of America on behalf of Goldstar clients. These clients agreed to pay Confredo a fraction of any loan that he secured on their behalf.
In order to manipulate the application process, Confredo submitted false tax returns and bank statements that increased the clients’ incomes and assets and allowed them to qualify for loans and lines of credit through Bank of America. Due to this scheme, Bank of America issued approximately $3.2 million in loans and lines of credit to Goldstar’s clients and lost about $1 million after the loans and lines of credit were not repaid.
“As the defendant admitted, he selfishly manipulated the trust of his clients and lied to financial institutions simply to line his own pockets. He will now face consequences for his greed,” United States Attorney Breon Peace, stated.
Confredo faces up to 30 years in prison. As part of his guilty plea, Confredo agreed to forfeit approxinmat $140,000 and to pay restitution that will be determined later by the Court at his sentencing.