BOSTON - Four men, including a former president of Digital Equipment Corp.'s credit union, were charged with fraudulently obtaining $30 million in loans from a now-defunct Cape Cod credit union.
Federal prosecutors charged Richard D. Mangone, Robert Cohen, Ambrose L. Devaney, and James K. Smith with bank fraud, money laundering, and conspiracy. They pleaded not guilty and were freed on bond.
$30 Million Involved
The indictment alleges that the defendants falsified loan documents, financial statements, purchase and sale agreements, and trust certificates to divert about $30 million in loans from Barnstable Community Federal Credit Union, forcing the Hyannis institution into insolvency.
Federal regulators took over Barnstable in June 1991.
Mr. Mangone, president of the Digital credit union from 1983 until 1991, also held top positions, including chairman. at Barnstable. Mr. Smith was a vice chairman. vice president, and director at Barnstable. Mr. Cohen, the Barnstable credit union's lawyer, was also a member of the supervisory committee.