Bank Fraud Mastermind of $420 Million Scheme Gets 3-Year Prison Sentence
A Plymouth resident has been sentenced to three years in prison for orchestrating a massive bank fraud scheme worth $420 million. Matthew Onofrio, aged 34, received this sentence on Thursday, along with a requirement to pay nearly $5.4 million in restitution.
Details of the Fraud Scheme
Matthew Onofrio, an anesthetist turned real estate investor, devised a fraudulent investment strategy. He entered into purchase agreements for commercial properties and later assigned these at inflated prices to inexperienced investors.
Methodology of the Fraud
- Coached investors to submit false information to banks.
- Created fake personal financial statements for investors.
- Provided loans to investors for down payments without disclosing them.
Onofrio allegedly falsified documents that misrepresented the investors’ financial capability. This enabled them to secure loans they could not afford. He funded down payments by wiring money, but failed to report these transactions as liabilities, keeping them hidden from financial institutions.
Timeline and Impact
Between 2020 and 2022, it is estimated that Onofrio executed 68 fraudulent transactions, amassing over $420 million in loans. Federal prosecutors revealed that he received at least $35.7 million prior to his apprehension.
With a three-year prison term and two years of supervised release, Onofrio’s case highlights significant issues within bank loan processes and the importance of thorough scrutiny in real estate investments.
