Former Lending Chief Jailed In FraudScheme

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SYRACUSE, N.Y. - (11/16/04) -- The former head of lending atUpState FCU, now known as AmeriCU, was sentenced last week to 33months in prison and ordered to pay $313,000 in restitution for hisrole in a scheme that siphoned $1.2 million form the credit unionin phony loans. John Matrulli, 59, of New Hartford, was convictedin May of 17 counts of making false entries in the credit union'srecords, three counts of receiving illegal gratuities, and onecount of conspiracy to defraud a credit union. Matrulli, who servedas vice president of lending for the credit union for 10 years,until March 1999, was found guilty of falsifying credit union loanrecords to two borrowers, and accepting bribes from thoseborrowers.

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