Guilty Plea in N.J. Fraud Case
NEWARK, N.J. - Carlo Deiulius, a former restaurateur and fight promoter, has pleaded guilty to a three-count federal information charging that he defrauded three banks for a total of $2.5 million, U.S. Attorney Michael Chertoff said.
With a guilty plea on an information, as opposed to an indictment, a defendant waives the right to have his case presented before a grand jury.
Mr. Deiulius faces a maximum sentence of 12 years in federal prison and a $750,000 fine. Sentencing is set for Sept. 11 by U.S. District Judge Maryanne Trump Barry.
Mr. Deiulius pleaded guilty to obtaining loans from 1985 to 1987 by submitting false and misleading information to Reliance Bank (now Crossland Savings), Midlantic National Bank, and National Community Bank. The falsified information pertained to loan security, the potential for repayment, and the purposes for which the money was being used, the prosecutor said.
As a result, Mr. Deiulius received $2.2 million in loans and checking account overdrafts from Reliance Bank, $200,000 in loans from Midlantic, and a $50,000 loan from National Community Bank, Mr. Chertoff said. Substantial portions of the loans remain unpaid.
