By Joseph Coleman
Contributing Editor, Coleman Report
August 2, 2021
LGPC Retired Center Director Frank Pucci (2007-2015) testified during day six of the Kerri Agee banc-serv trial that the SBA 7(a) loan applications submitted by banc-serv would not have been approved had he known their employees used name changing and other deceptive tactics to submit duplicate applications for ineligible borrowers.
Multiple banc-serv SBA loan applications were submitted to Citrus Heights using business name changes. Defendant Kelly Isley reportedly emailed her co-defendant Nicole Smith, “You just have to submit under another name.”
“On a fairly regular basis we were on calls and emailing with them [banc-serv] because they were such a big LSP. We had a small staff and I was the most knowledgeable so it fell on me,” says Pucci.
Prosecutors asked Mr. Pucci if he would have approved these loans had he known about duplicate applications, to which he quickly replied “No, because it’s ineligible.”
Pucci asserted that guaranty funds were supposed to be used for eligible small businesses. “Having loans approved and guaranty funds used up for ineligible business cost the taxpayers,” says Pucci.
Pucci confirmed OIG was notified about banc-serv defendant Nicole Smith shortly after repeated inconsistencies were flagged by LGPC.
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