September 18, 2020
By Caity Roach
Contributing Editor, Fraud Friday
Fraud Friday — Greylock Fraud Defendant Awaits Sentencing Six Years After Pleading Guilty
Former commercial loan officer for Massachusetts based Greylock Federal Credit Union, Michael Dicenzo, will soon hear his punishment, nearly six years after pleading guilty to participating in a multimillion-dollar loan fraud scheme.
In the plea agreement, Dicenzo admitted to authorizing various loans and loan modifications in violation of Greylock Federal Credit Union’s policies. By circumventing company policies, Dicenzo knowingly provided borrower Jeffrey Pierce with $4 million in loans that he would not be able to repay. In exchange for improperly authorizing loans, Pierce provided Dicenzo with check payments, a newly constructed house, and a BMW.
Dicenzo also admitted to misappropriating a total of $48,058 from two nonprofit groups in the Berkshires by diverting checks and banking transfers from the two nonprofits into one of his personal accounts which he opened under a fake name.
Dicenzo’s sentencing hearing is now set for October 15, 2020. Along with a possible prison sentence, Dicenzo is expected to be ordered to compensate others for losses. His attorney has asked that he be spared jail time due to his waning health and instead be ordered to make $919,000 in restitution payments to Greylock. According to his attorney, Dicenzo is living in an extended-care facility, where he continues to receive medical treatment for diabetes, hypertension, kidney failure, and a recent stroke. However, the court has yet to see proof of Dicenzo’s medical conditions.
Jeffrey Pierce, the only other defendant in the fraud case, is currently serving 20 months in federal prison.