HELOC scam nets guilty plea.
On Febr. 27, 2018, Brian Socha used a coworker’s computer to increase his HELOC credit limit from $135,500 --- the amount of the original loan on his home --- to $150,000, giving him more money to access.
Over the next five years, the former loan officer at the $329 million MassMutual Federal Credit Union in Springfield, Mass., increased his home’s HELOC credit limit incrementally 19 times to a total of $995,000. Additionally, he lowered the interest rate on the loan at least four times. The first reduction occurred March 22, 2019, when he cut the rate from 5.25% to 1.99%, according to charging documents filed by federal prosecutors in U.S. District Court in Springfield, Mass.
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Socha signed a plea agreement with federal prosecutors in June, agreeing to plead guilty to one felony count of bank fraud and to pay $902,541 in restitution.
When coworkers were away from their desks, Socha used their computers to increase the HELOC limits or lower the interest rates. The credit union’s internal computer system recorded that the coworker made the changes, though court records do not explain how Socha’s actions were ultimately discovered.
His final HELOC increase, from $950,000 to $995,000, was recorded on Nov. 6, 2023. His last interest rate change, from 7.25% to 1.99%, occurred on March 10 of that year.
Court hearings for Socha are pending.
Peter Strozniak can be reached at [email protected]
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Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
