May 28, 2022

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Mont Vernon Lawyer Convicted of Participating in Multimillion Greenback Fraud Scheme | USAO-NH

            Harmony – Performing United States Authorized skilled John J. Farley introduced that Joseph A. Foistner, 67, of Mont Vernon, was noticed accountable on Thursday of 4 counts of monetary establishment fraud, in addition to prices of wire fraud, revenue laundering, and incomes misrepresentations all through particular person chapter proceedings.  The decision was returned by Senior U.S. District Decide Paul Barbadoro on Thursday, December 23, 2021, adhering to a two-7 days bench trial.

            In accordance to reveals and witness testimony all through the trial, Foistner utilized fraudulent suggests to make the most of for above $8 million in monetary loans from 5 numerous financial institutions, laundered money, and designed content material misrepresentations during private chapter proceedings regarding 2015 and 2018.  Foistner, on the time of the plan, was a licensed authorized skilled in Massachusetts.  He didn’t have any spending shoppers and gained no earnings via his legislation agency.  In get to obtain tens of hundreds of thousands of dollars in monetary loans from a lot of fiscal institutions, Foistner offered banking firms with misleading paperwork that suggested that he was operating a worthwhile regulation company.  For illustration, he claimed that he was a “seasoned legal professional” with worldwide purchasers and that his company acquired greater than 1,000,000 {dollars} in yearly money circulate.  In level, all of the agency’s purported earnings was depending on bogus, unpaid invoices the company submitted to entities that the defendant managed, together with bankrupt entities.  The defendant additionally designed different phony statements to get financial institution monetary loans, along with mendacity about regardless of whether or not he was involved as a bash to any lawsuits and denying that he skilled an curiosity in different suppliers.  He additionally falsely represented that he had a wage by mischaracterizing financial institution mortgage proceeds as a wage.  In one of many monetary establishment fraud strategies, the defendant submitted false information to accumulate a monetary mortgage by declaring falsely that his spouse was incomes about $200,000 for each yr as a paralegal.  Every particular person of the monetary loans constructed to Foistner have been backed by probably the Division of the Veterans Affairs or the Smaller Small enterprise Administration.

            The proof further confirmed that Foistner dedicated quite a few crimes during Chapter 7 chapter court docket proceedings in 2017 and 2018.  He designed unfaithful representations by falsely denying that he held or managed belongings owned by some others when he actually managed funds that have been being held within the title of an organization.  He additionally created bogus statements below oath by mendacity about what befell to the proceeds of 1 of the fraudulent loans and mendacity about not understanding the situation of a chunk of true property that had been bought partly with funds he borrowed and had subsequently funneled into monetary establishment accounts not in his title.

            Foistner is scheduled to be sentenced on April 4, 2022. 

            “Whereas no a single is entitled to dedicate fraud, this defendant’s crimes have been being particularly egregious primarily as a result of they have been being dedicated by an legal professional,” said Performing U.S. Authorized skilled Farley.  “The proof on this circumstance demonstrated that Foistner engaged in a shocking sample of fraudulent and deceitful conduct to obtain hundreds and hundreds of dollars from fiscal institutions and that he instructed a bunch of lies in his endeavours to much more his plan and shield his tracks all through particular person chapter proceedings.  With this accountable verdict, Foistner final however not least is turning into held accountable for his prolonged pattern of mendacity and manipulation.  I’m grateful to all the federal brokers and prosecutors who labored difficult to look into and prosecute this main fraud circumstance.”

            “Joseph Foistner took benefit of programs that had been made to allow veterans attain house possession, and compact enterprises develop and develop. In fraudulently accumulating tons of of hundreds of {dollars}, his lies and deceit haven’t solely harm himself, however nearly each citizen whose tax {dollars} steering these federally funded packages,” claimed Joseph R. Bonavolonta, Unique Agent in Value of the FBI Boston Division. “The FBI is set to get the job achieved with our associates to carry anyone who commits these sorts of fraud accountable.”

            This matter was investigated by the Federal Bureau of Investigation, the Office of Inspector Widespread of the Division of Veterans Affairs, and the Office of Inspector Basic of the Modest Group Administration.  The state of affairs was prosecuted by Assistant U.S. Legal professionals Charles L. Rombeau, Seth R. Aframe and Unique Assistant U.S. Authorized skilled Alexander S. Chen.  Former Assistant U.S. Authorized skilled Robert Kinsella, Assistant U.S. Attorneys John S. Davis and Kasey Weiland previously labored on this subject. 

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