CPA Pleads Guilty in $19,000,000 Bank Fraud Scheme

A certified public accountant has pleaded guilty to a complex bank fraud scheme, in which she attempted to defraud lenders of $19,000,000. Christine Gendron, a financial manager at real estate firm JLL Realty Developers, conspired with her brother-in-law, Masaschi, and allegedly her sister, Jeanette Norman, to defraud financial institutions. The scheme involved providing materially false, fictitious, and fraudulent financial information, including false rent rolls and forged lease agreements, to obtain loans for their companies.

Gendron's brother-in-law and, allegedly, her sister were partners in several limited liability companies that owned commercial and residential properties in various locations. After obtaining the loans, they only partially repaid them or did not pay at all, resulting in financial institutions incurring substantial losses of over $19 million. Gendron could face up to 30 years in prison, five years of supervised release, and a fine of up to $1 million or twice the gross gain or loss, as the charge of conspiracy to commit bank fraud provides for such penalties.

Gendron's sister, who has pleaded not guilty, is scheduled to stand trial in October. The case highlights the vulnerabilities in the lending process and the importance of thorough due diligence. The accountant's actions underscore the risks associated with relying solely on financial documents and the need for lenders to conduct comprehensive background checks and verifications. The Department of Justice's intervention has prevented a significant financial loss for the lenders involved and serves as a reminder of the importance of vigilance in the financial sector. The accountant's guilty plea is a testament to the effectiveness of law enforcement efforts in combating financial crimes and protecting the integrity of the banking system.