Scott Lonzinski, who pleaded guilty Wednesday in U.S. District Court to defraudingthe now-defunct $52 million Broome County Teachers FCU ofBinghamton, N.Y., was no stranger to the credit union.

|

Lonzinski, who was accused along with his mother of obtainingmore than $14 million in fraudulent loans that eventually causedthe 3,900-member credit union's failure, apparently was hired to renovate BCT FCU's Montrose,Pa. branch.

|

A website for Scott Lonzinski Construction includes photos and adescription of the project.

|

“Located in Montrose, Penn., BCT Federal Credit Union bought anold home, and gut (sic) the property, but leaving the existingcharacteristic chimney. Scott Lonzinski Construction Inc.,renovated and updated the property,” the website said.

|

The location, southwest of Montrose along Pennsylvania StateRoute 706, appears to still operate as a branch serving members ofthe $3 billion Visions FCU of Endicott, N.Y., which purchased the failed BCT's assets in December 2011.

|

Visions Executive Vice President Jim Felmet did not immediatelyreturn a call confirming the location was part of the BCT P&Atransaction.

|

Lonzinski's website also features photosof the construction of his own personal home, which a fraudulentBCT FCU loan allegedly funded.

|

According to court documents, authorities seized a collection ofpersonal and construction vehicles tied to the fraudulent loanproceeds, including a 2011 BMW X5 SUV, a 2010 BMW 328XI coupe, a2009 Ford Shelby Mustang, two 2011 GMC Sierra 2500 pickups, a 2009Chevrolet Silverado pickup, a 2011 Peterbilt 288 semi and two 2011Arctic Cat F-8 snowmobiles.

|

Authorities also seized $4.34 million from accounts at TheHonesdale National Bank of Honesdale, Pa., and more than $825,000in cash proceeds.

|

Five million dollars' worth of the duo's seized assets were paidto the NCUA as restitution, and applied to the NCUSIF, said agency spokesman John Fairbanks.

|

The Scranton, Pa. Times-Tribune reported that U.S.Attorney Richard Hartunian said co-conspirator Laura Conarton,Lonzinski's mother who also pleaded guilty in U.S. District Court,had worked in the banking industry for 10 years and used theexperience to help perpetrate the fraud.

|

Lonzinski and Conarton both face a maximum sentence of 30 years'imprisonment and a maximum fine of $1 million. Sentencing isscheduled for Lonzinski on Dec. 19 and Conarton on Dec. 20.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.