A Longmeadow man has admitted to his role in a multi-million dollar loan fraud conspiracy, entering a guilty plea in federal court. Louis R. Masaschi, 59, faced multiple charges, including conspiracy to commit wire fraud and aggravated identity theft, in connection to falsified financial information supplied to commercial lenders. His sentencing is scheduled for July 23, as reported by the U.S. Attorney's Office.
Alongside his wife and alleged accomplice Jeanette Norman, Masaschi controlled numerous LLCs, including LL Realty Developers, LLC. These entities owned a variety of commercial and residential properties across Western Massachusetts and Connecticut. The couple has been accused by federal prosecutors of using forged lease agreements and exaggerated rent rolls to secure loans from financial institutions, leading them to default and causing significant lender losses. Despite Masaschi's plea, Norman maintains her innocence and faces a pending trial in October.
As part of his plea agreement, Masaschi has acknowledged that the fraudulent activity, spanning May 2016 through November 2018, sought approximately $60 million in loans. This misconduct resulted in actual losses estimated at over $19 million. The implications of these transgressions are significant, with potential penalties including years of prison time, supervised release, and steep fines based on the U.S. Sentencing Guidelines.
The investigation that brought this conspiracy to light was a collaborative effort between the U.S. Attorney's Office and the Federal Bureau of Investigation (FBI). Assistant U.S. Attorney Steven H. Breslow is handling the prosecution of the case, as unveiled by U.S. Attorney Leah B. Foley and James Crowley, the Acting Special Agent in Charge of the FBI's Boston Division. As with all criminal cases, the charges outlined in the court documents are mere allegations, and the remaining defendant, Norman, is presumed innocent until—if—proven guilty beyond a reasonable doubt in a court of law.
