WILLIAMSPORT – The previous chief lending officer of a Columbia County financial institution has admitted working a straw mortgage scheme over a nine-year interval.
Matthew W. Mensinger, 48, of Berwick, pleaded responsible Thursday in U.S. Center District Court docket to a cost of making false statements on mortgage functions.
Mensinger in his function as chief lending officer for 1st Keystone Group Financial institution in Berwick admitted utilizing family and friends members to use for eight loans totaling $690,000 between November 2011 and June 2020.
The mortgage functions said the cash was for small enterprise functions however Assistant U.S. Lawyer Phillip A. Caraballo mentioned the cash went to Mensinger.
He had a personal settlement with the others to repay the loans that have been of their names, he mentioned.
The financial institution would have by no means permitted the loans had it recognized Mensinger was the recipient of the cash, the prosecutor mentioned he was informed.
The overall loss and meant loss is estimated to be between $300,000 and $400,000, Caraballo mentioned.
Mensinger might be required to make full restitution the quantity of which might be decided earlier than sentencing the date of which has not been set. The rules name for a jail time period of at the least two years.
He’s represented by court-appointed counsel as a result of Choose Matthew W. Brann discovered, based mostly on submitted monetary paperwork, that Mensinger can’t afford a personal lawyer.
Mensinger stays free on private recognizance.
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