Massachusetts woman pleads guilty to lying to get $4M loan
BOSTON (AP) — A Massachusetts woman who lied to a bank about her company’s financial condition and even submitted falsified documentation to get a $4.2 million loan has pleaded guilty to fraud.
Federal prosecutors say 53-year-old Beth Zastawny, of Ludlow, pleaded guilty in Springfield federal court on Wednesday to bank fraud and money laundering. She faces up to 30 years in prison at sentencing Oct. 1.
Authorities say she made it appear that Chicopee-based Diecast Connections Company Inc.’s financial condition was much stronger than it was in order to obtain the loan from Blue Hills Bank in January 2015.
She then used the loan to repay creditors that had not been disclosed to the bank, and for purposes not called for in the loan agreement, resulting in a substantial loss for the bank.