Fraud Friday: Fake Rent Rolls and Forged Leases Cause $20 Million in Lender Losses

July 31, 2026

Bob Coleman
Founder & Publisher

Fraud Friday: Fake Rent Rolls and Forged Leases Cause $20 Million in Lender Losses

Louis R. Masaschi, 59, of Longmeadow, Massachusetts, was sentenced to four years in federal prison for a commercial loan fraud conspiracy that caused more than $20 million in lender losses.

Masaschi and his wife and business partner, Jeanette Norman, operated dozens of limited liability companies that owned commercial and residential properties in Massachusetts and Connecticut. Federal prosecutors said they attempted to obtain $60,123,000 in commercial financing between May 2016 and November 2018.

The fraud was built around loan documents that appeared to support one another.

The plea agreement states that Masaschi and Norman submitted “materially false financial information” to banks, credit unions, insurance companies and commercial mortgage lenders.

That information included “false rent rolls” containing inflated monthly rents and lease expiration dates. The borrowers also submitted false profit and loss statements that overstated property income.

The pair also submitted “fictitious documents that supported the false rent rolls,” including lease agreements, tenant estoppel certificates and subordination, nondisturbance and attornment agreements. These documents contained inflated rental payments and forged tenant signatures.

Some packages were delivered directly to lenders. Others went through mortgage brokers.

After the loans closed, the borrowers made some payments or no payments before defaulting. Several properties were left vacant.