WASHINGTON -- A federal jury in Wilmington, N.C., has convicted three business owners on charges of defrauding the First Federal Savings and Loan Association of Raleigh, the Resolution Trust Corp. said.
The RTC resolved the failed thrift in March.
Louis Mancuso and his wife, Susan Lynn, owners of Precision Erectors Inc. and Piedmont Installers Inc. in North Carolina, were each convicted of 10 counts of bank fraud and one count of conspiracy to commit bank fraud in connection with a $236,000 loan they obtained from First Federal in 1990, the RTC said.
Mr. Mancuso was also convicted of making a false statement to First Federal to avoid repaying the loan in accordance with the contractual agreement between the Mancusos and the thrift.
R. Philip Hartman, owner of Hartman Rack Products Inc. in Waterloo, N.Y., was convicted of conspiring with the Mancusos to commit fraud, and of 10 counts of bank fraud stemming from the Mancusos' failure to repay the loan, the RTC said.
Each conspiracy conviction carries a maximum penalty of five years in prison and $250,000 in fines. Each count of bank fraud carries a maximum penalty of 30 years and $1 million in fines.