Ex-CPA admits to bank fraud conspiracy that cost lenders millions

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SPRINGFIELD — A former accountant pleaded guilty in federal court to participating in a conspiracy that prosecutors say obtained commercial mortgages for area properties using false information.
Christine Gendron, 61, pleaded guilty before Judge Mark G. Mastroianni on Friday to one count of conspiracy to commit bank fraud, according to U.S. Attorney's Office spokesperson Caroline Ferguson. Gendron's sentencing is scheduled for Sept. 30.
Gendron — whose certified public accountant status expired in June 2023 — described herself as 'resident CPA' of JLL Realty Developers, according to a statement of facts attached to her plea agreement signed April 16. She was sister to one of the partners of the company, Jeannette Norman.
Norman's federal case is still pending. Norman, court documents note, was a vice president at Goldman Sachs between 1998 and 2007.
The other partner of JLL Realty Developers was Louis Masaschi, Gendron's brother in law. In April, he pleaded guilty to wire fraud, aggravated identity theft and conspiracy to commit wire fraud. His sentencing is set for July.
Gendron, the statement of facts reads, helped submit false documents, such as rent rolls, and profit and loss statements, starting in May 2016, to obtain commercial loans for properties in Connecticut and Western Massachusetts.
The documents 'contained inflated monthly rental payments and lease expiration dates ... that bore the signatures of Masaschi or Norman, as well as the forged signatures of the tenants,' says the statement of facts.
Prosecutors wrote in court documents that JLL Realty tried to obtain $60 million in commercial loans, although some financial institutions did not issue the money.
'After receiving these loans, Masachi, Norman, and their companies made some or no payments and ultimately defaulted on the loans, causing substantial loses to the commercial Lenders,' documents state.
Altogether, the financial institutions lost $19.3 million.
Among the affected financial institutions, Workers Credit Union loaned JLL Realty $11.5 million in 2018 after the group put up an East Longmeadow property as collateral. Ultimately, the Littleton-based financial institution lost $2 million, according to the statement of facts.
In 2017, Springfield-based Freedom Credit Union lent the group $6.25 million based on the collateral of three properties in Springfield and ended up losing $5.37 million, according to court documents. A year later, JLL Realty tried to obtain a $400,000 loan from the credit union, but was unsuccessful.
Meanwhile, Berkshire Bank denied JLL Realty's two applications for commercial loans in 2018, one for $11 million and another for $3 million, according to court records.
The financial institutions did not immediately return requests for comments.
Gendron, court documents state, did not personally guarantee the loan nor receive the proceeds of the loans. She only collected a salary at JLL Realty, which totaled about $393,000 between 2015 and 2022, court records say.
Prosecutors in April sought the forfeiture of Gendron's full salary.
Special agents with the FBI visited Gendron at her Feeding Hills home in May 2021, according to information filed with the court in April.
'Gendron falsely stated that she was unaware of any fraudulently obtained loans, and that it would surprise her that (her co-conspirators) would submit fraudulent documents to the bank,' prosecutors wrote.
Gendron's attorney did not immediately return a request for comment.
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