Peter M. Cicero, 41, of Adams, told Community Bank that he was buying two loan closing companies for $3.3 million, secured a $1.8 million loan on that basis and paid very little back before defaulting, IRS investigators found.
The investigators later discovered that the sales price was fraudulent, Mr. Cicero was falsifying documents to back other loans and he was shunting money into accounts in relatives' names that were actually controlled by him.
Today Mr. Cicero pleaded guilty to bank fraud and money laundering. He will be sentenced Oct. 15 by U.S. District Judge David S. Cercone.
The loss to Community Bank was almost the entire $1.8 million amount of the loan, Assistant U.S. Attorney Brendan Conway told Judge Cercone.
Rich Lord: firstname.lastname@example.org, 412-263-1542 or Twitter @richelord.