LI Man Pleads Guilty To $3M Bank Loan Scheme: Prosecutors

NEW YORK — A man pleaded guilty on Friday to conspiracy to commit bank fraud, the United States Department of Justice announced.

Gary Confredo, 60, of East Northport, also known as "Gary Conte," is the former operator of Goldstar Financial Management Corp. (Goldstar), a financial services business based in Commack. Confredo pleaded guilty to a scheme to defraud Bank of America of more than $3.2 million in loans and lines of credit that were obtained under false pretenses, the DOJ stated.

When sentenced, Confredo faces up to 30 years in prison. As part of his guilty plea, Confredo agreed to forfeit approximately $140,000 and pay restitution. The court is set to determine the amount of restitution Confredo must pay at his sentencing.

“As the defendant admitted, he selfishly manipulated the trust of his clients and lied to financial institutions simply to line his own pockets," U.S. Attorney Breon Peace stated via news release. "He will now face consequences for his greed. This Office stands committed to prosecuting criminals, whether they hurt someone physically or financially.”

Between November 2016 and October 2019, Confredo conspired with others to submit fraudulent applications for commercial loans and lines of credit to Bank of America on behalf of Goldstar clients, who agreed to pay Confredo a portion of any loan that he secured on their behalf, according to court filings and facts presented at the plea proceeding.

To manipulate the application process, Confredo submitted altered tax returns and bank statements that falsely inflated the clients’ incomes and assets and allowed them to qualify for loans and lines of credit under Bank of America’s lending criteria, officials said. Because of Confredo's scheme, Bank of America issued approximately $3.2 million in loans and lines of credit to Goldstar’s clients and sustained losses of approximately $1 million when those loans and lines of credit were not repaid, authorities said.

“Mr. Confredo defrauded Bank of America of millions of dollars while on supervised release from a previous conviction," stated Daniel Brubaker, inspector in charge of the U.S. Postal Inspection Service. "With his guilty plea [Friday], he has taken responsibility for his greed and hopefully will stop the revolving door on his life of crime. Any time the U.S. Mail is used to commit and/or further a crime, the U.S. Postal Inspection Service will be there to see that those responsible are brought to justice."