Mont Vernon District Attorney Convicted of Engaging in Multi-Million Dollar Fraud Scheme | USAO-NH
CONCORD – Acting U.S. Attorney John J. Farley announced that Joseph A. Foistner, 67, of Mont Vernon, was convicted Thursday on four counts of bank fraud, as well as wire fraud charges, money laundering and misrepresentation in bankruptcy proceedings. . The verdict was delivered by U.S. Senior District Judge Paul Barbadoro on Thursday, December 23, 2021, following a two-week trial.
According to exhibits and testimony during the trial, Foistner used fraudulent means to request more than $ 8 million in loans from five different financial institutions, laundered money and made false statements in a bankruptcy proceedings between 2015 and 2018. Foistner, at the time of the regime, was a licensed attorney in Massachusetts. He had no paying clients and earned no income from his law firm. In order to secure millions of dollars in loans from several financial institutions, Foistner provided the banks with deceptive documents suggesting he was running a lucrative law firm. For example, he claimed that he was a “seasoned lawyer” to international clients and that his firm earned more than $ 1 million in annual revenues. In fact, all of the company’s alleged income was based on unpaid bogus invoices the company submitted to entities controlled by the defendant, including bankrupt entities. The defendant also made other false statements to obtain bank loans, including lying about his involvement as a party to lawsuits and denying having an interest in other companies. He also falsely stated that he had a salary by mistakenly qualifying the loan proceeds as a salary. In one of the bank fraud schemes, the defendant submitted false information to obtain a loan by falsely claiming that his wife made more than $ 200,000 a year as a paralegal. Each of the loans to Foistner was backed by either the Department of Veterans Affairs or the Small Business Administration.
Evidence further showed that Foistner committed several crimes during Chapter 7 bankruptcy court proceedings in 2017 and 2018. He made false statements by falsely denying that he owned or controlled property belonging to others at the time. that he actually controlled funds held on behalf of a company. . He also made false affidavits by lying about what happened to the proceeds of one of the fraudulent loans and by lying that he did not know the location of real estate that had been purchased in part with funds which he had borrowed and which had then been channeled to the bank. not in his name.
Foistner is expected to be sentenced on April 4, 2022.
“Although no one has the right to commit fraud, this accused’s crimes were particularly egregious because they were committed by a lawyer,” Acting United States Attorney Farley said. “The evidence in this case has shown that Foistner engaged in a shocking scheme of fraudulent and deceptive conduct to obtain millions of dollars from financial institutions and that he told a host of lies in his efforts to advance his plan and cover his tracks during bankruptcy proceedings. With this guilty verdict, Foistner is ultimately held responsible for his long cycle of lies and manipulation. I am grateful to all of the federal agents and prosecutors who worked hard to investigate and prosecute this important fraud case. “
“Joseph Foistner has benefited from programs designed to help veterans access homeownership and small businesses grow and grow. By fraudulently collecting millions of dollars, his lies and deception have not only harmed himself, but all the citizens whose tax dollars support these federally funded programs, ”Joseph said. R. Bonavolonta, special agent in charge of the Boston division of the FBI. “The FBI is committed to working with our partners to hold anyone responsible who commits such fraud. “
This case was investigated by the Federal Bureau of Investigation, the Office of the Inspector General of the Department of Veterans Affairs and the Office of the Inspector General of the Small Business Administration. The case was continued by Assistant US Prosecutors Charles L. Rombeau, Seth R. Aframe and Special Assistant US Prosecutor Alexander S. Chen. Former Assistant US Attorney Robert Kinsella, Assistant US Prosecutors John S. Davis and Kasey Weiland previously worked on this case.