Former CU Exec Convicted In $1.5 Million Loan Scheme

Published July 19, 2013, 8:10 a.m. EDT

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Updated August 26, 2020, 10:14 p.m. EDT

1 Min Read

MADISON, Wis. A former commercial loan officer at Consumers CU in Round Lake Beach, Ill, and at Fox River State Bank in Wisconsin, was sentenced in federal court yesterday to 35 months in prison for a loan scheme that siphoned almost $1.5 million from the two institutions.

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James Scalzo pleaded guilty to forging borrowers’ signatures, including those of his elderly parents and other family members, on loan documents, then transferring the funds from the individuals’ accounts into his own accounts during 2008 and 2009. Court documents show Scalzo received $615,000 in fraudulent loans from Consumer CU in 2009.

To conceal the fraud Scalzo directed that the funds be taken from fraudulent loans to be applied against balances due on previously originated fraudulent loans

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