Woodbridge Resident Pleads Guilty to Fraud

John Voloshin, 56, of Penny Lane, Woodbridge, pleaded guilty today to one count of mail fraud stemming from his operation of multiple schemes that have caused losses of more than $1.5 million to individuals and lenders.

According to court documents and statements made in court, in 2010, Voloshin defrauded an individual for whom he had agreed to bid on the bank auction of a hotel on Nantucket. Voloshin instructed the victim to send him a check in the amount of $250,000 made payable to the name of the auction company. Rather than delivering money to the auction company, Voloshin deposited the check into a bank account for which he had sole signatory authority and used the proceeds from that check to enrich himself.

Voloshin also admitted to three other frauds. In 2006, he asked an individual to loan him $500,000. Voloshin indicated that he was in contract to purchase a house on Martha’s Vineyard and that he needed the money or he would lose a deposit. The victim agreed to loan Voloshin the money. To date, he has not repaid the loan.

In 2008, Voloshin received a home equity loan in the amount of $250,000 from Webster Bank. In support of his home equity loan application, he submitted a false federal tax return. As of August 2011, the outstanding balance on the bank loan was more than $252,000.

In June 2010, Voloshin applied for and received a $520,000 refinance loan from a mortgage lender for a property he has owned on Martha’s Vineyard since 1999.  In association with the loan application, he submitted a financial account statement showing an account balance in excess of $3 million at UBS when, in reality, he had no account at UBS. Voloshin used approximately $250,000 of the refinance loan proceeds to pay the victim of the hotel auction fraud scheme.

In total, his schemes resulted in losses of approximately $1.52 million.

Voloshin is scheduled to be sentenced on April 5, 2012, by United States District Judge Robert N. Chatigny, at which time he faces a maximum term of imprisonment of 20 years. He has been detained since his arrest on November 18, 2011.

        This matter is being investigated by the Federal Bureau of Investigation.  The case is being prosecuted by Assistant United States Attorneys David T Huang and Michael S. McGarry.