January 28, 2022

Tomer Aiderapp

Consummate Business Technicians

Mont Vernon Attorney Convicted of Engaging in Multimillion Dollar Fraud Scheme | USAO-NH

            Concord – Performing United States Attorney John J. Farley introduced that Joseph A. Foistner, 67, of Mont Vernon, was uncovered guilty on Thursday of 4 counts of lender fraud, as nicely as prices of wire fraud, money laundering, and making misrepresentations throughout bankruptcy proceedings.  The verdict was returned by Senior U.S. District Choose Paul Barbadoro on Thursday, December 23, 2021, adhering to a two-7 days bench demo.

            According to exhibits and witness testimony during the trial, Foistner utilised fraudulent signifies to utilize for around $8 million in loans from 5 distinctive economical institutions, laundered income, and created content misrepresentations all through bankruptcy proceedings between 2015 and 2018.  Foistner, at the time of the plan, was a accredited attorney in Massachusetts.  He did not have any paying out purchasers and earned no money through his legislation company.  In order to obtain thousands and thousands of pounds in loans from several monetary institutions, Foistner presented banking institutions with deceptive paperwork that suggested that he was operating a profitable law agency.  For example, he claimed that he was a “seasoned attorney” with worldwide customers and that his business gained more than a million dollars in yearly money.  In simple fact, all the firm’s purported cash flow was primarily based on bogus, unpaid invoices the business submitted to entities that the defendant managed, such as bankrupt entities.  The defendant also produced other untrue statements to obtain lender loans, together with lying about no matter if he was included as a party to any lawsuits and denying that he experienced an desire in other providers.  He also falsely represented that he experienced a income by mischaracterizing bank loan proceeds as a salary.  In 1 of the financial institution fraud strategies, the defendant submitted fake information and facts to get a loan by claiming falsely that his wife was earning over $200,000 for every 12 months as a paralegal.  Each and every of the financial loans made to Foistner had been backed by either the Division of the Veterans Affairs or the Modest Organization Administration.

            The evidence more confirmed that Foistner committed numerous crimes during Chapter 7 personal bankruptcy courtroom proceedings in 2017 and 2018.  He created false representations by falsely denying that he held or controlled assets owned by other people when he really controlled resources that were held in the title of a enterprise.  He also designed untrue statements less than oath by lying about what took place to the proceeds of 1 of the fraudulent loans and lying about not knowing the location of a piece of true estate that experienced been procured in aspect with resources he borrowed and had subsequently funneled into financial institution accounts not in his name.

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

            “While no one particular is entitled to commit fraud, this defendant’s crimes had been specifically egregious since they have been committed by an legal professional,” reported Acting U.S. Legal professional Farley.  “The evidence in this circumstance shown that Foistner engaged in a stunning sample of fraudulent and deceitful carry out to obtain hundreds of thousands of pounds from money establishments and that he told a host of lies in his endeavours to more his plan and cover his tracks through individual bankruptcy proceedings.  With this guilty verdict, Foistner finally is getting held accountable for his prolonged pattern of lying and manipulation.  I am grateful to all of the federal agents and prosecutors who labored tricky to investigate and prosecute this sizeable fraud scenario.”

            “Joseph Foistner took edge of programs that have been created to support veterans achieve home possession, and little corporations expand and build. In fraudulently gathering tens of millions of pounds, his lies and deceit have not only damage himself, but each and every citizen whose tax bucks guidance these federally funded systems,” mentioned Joseph R. Bonavolonta, Particular Agent in Cost of the FBI Boston Division. “The FBI is determined to get the job done with our companions to maintain any one who commits such fraud accountable.”

            This make any difference was investigated by the Federal Bureau of Investigation, the Workplace of Inspector Normal of the Division of Veterans Affairs, and the Place of work of Inspector Normal of the Little Business enterprise Administration.  The situation was prosecuted by Assistant U.S. Lawyers Charles L. Rombeau, Seth R. Aframe and Particular Assistant U.S. Lawyer Alexander S. Chen.  Former Assistant U.S. Legal professional Robert Kinsella, Assistant U.S. Attorneys John S. Davis and Kasey Weiland beforehand labored on this matter.