Judge Sentencing
A former credit union loan officer will be sentenced in December after admitting in federal court Thursday that he repeatedly increased his home equity line of credit to nearly $1 million, according to court filings.
Brian Socha pleaded guilty to one felony count of bank fraud in U.S. District Court in Springfield, Mass.
Beginning in February 2018, Socha used a coworker’s computer at the $324 million MassMutual Federal Credit Union in Springfield to increase his HELOC credit limit from $135,500 - the amount of the original loan on his home - to $150,000, giving him more access to funds.
Over the next five years, Socha incrementally raised the credit limit 19 times, reaching a total of $995,000. He also lowered the loan’s interest rate at least four times. The first reduction occurred March 22, 2019, when he dropped the rate from 5.25% to 1.99%, according to federal prosecutors.
When coworkers were away from their desks, Socha used their computers to make the unauthorized changes. The credit union’s internal system recorded the changes under those employees’ accounts. Court documents did not explain how the fraud was discovered or how Socha spent the funds.
Socha signed a plea agreement with federal prosecutors in June. In addition to his guilty plea, he agreed to pay $902,541 in restitution.
Peter Stozniak can be reached at pstrozniak@cutimes.com.
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