Gary Confredo, also known as “Gary Conte,” the former operator of Goldstar Financial Management Corp. (Goldstar), a financial services business based in Commack, New York, pleaded guilty to a criminal information charging him with conspiracy to commit bank fraud in connection with 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 proceeding was held before United States Magistrate Judge Lee G. Dunst. When sentenced, Confredo faces up to 30 years in prison. As part of his guilty plea, Confredo agreed to forfeit approximately $140,000 and to pay restitution in an amount to be determined by the Court at his sentencing.
Breon Peace, United States Attorney for the Eastern District of New York, and Daniel Brubaker, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the guilty plea.
“As the defendant admitted, he selfishly manipulated the trust of his clients and lied to financial institutions simply to line his own pockets. He will now face consequences for his greed,” stated United States Attorney Peace. “This Office stands committed to prosecuting criminals, whether they hurt someone physically or financially.”
“Mr. Confredo defrauded Bank of America of millions of dollars while on supervised release from a previous conviction. With his guilty plea today, 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” stated USPIS Inspector in Charge, Daniel Brubaker.
According to court filings and facts presented at the plea proceeding, between November 2016 and October 2019, Confredo conspired with others to submit fraudulent applications for commercial loan 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. 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. As a result 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.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace will play a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including mail and wire fraud, bank fraud, health care fraud, tax fraud, securities and commodities fraud, and identity theft.
