Charges against state Rep. David Nangle, who was arrested this morning by federal agents, include allegations that he provided false information to a bank to obtain loans that in part funded gambling activities.

Nangle, 59, a Lowell Democrat, was indicted Tuesday on 10 counts of wire fraud, four counts of bank fraud, nine counts of making false statements to a bank and five counts of filing false tax returns, according to a statement from U.S. Attorney Andrew Lelling’s office. Nagle pleaded not guilty in federal court Tuesday afternoon.

The U.S. attorney’s office alleges that Nangle, who has been a member of the state House of Representatives since 1999, used his campaign committee’s debit card to make personal purchases, including thousands of dollars in gift cards for his personal use, among other things.

Nangle also, according to the statement, was heavily in debt and gambled extensively at area casinos and online. He then allegedly used thousands of dollars in campaign funds to pay for various personal expenses, such as dues at a local golf club, rental cars to travel to casinos, flowers for his girlfriend, gas, hotels and restaurants.

According to court documents, Nangle knew that using campaign funds for personal use was prohibited and subject to oversight by an independent state agency and concealed his theft by filing false reports that disguised the personal nature of the spending.

From at least 2014, according to the statement, Nangle devised a scheme to obtain loans from a bank in order to fund his gambling activities and repay his personal debts. Nangle allegedly did so by making false statements on loan applications, misstating his income and understating his debt.

According to the indictment, Nangle filed false tax returns for tax years 2014 to 2018 by reporting fictitious business deductions for purported “consulting” work that he did for a Billerica company. Nangle allegedly double-dipped on deductible expenses arising from his work as a state legislator, fraudulently claiming thousands of dollars in false deductions for alleged charitable donations and misleading his tax preparer.

Nangle also allegedly concealed the income he received through goods and services from business owners and other sources. This included $7,000 in kitchen and bathroom work done in Nangle’s home and $7,000 in check payments from a contractor, gambling income from a Connecticut casino and thousands of dollars that he stole from his campaign account.

The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charges of bank fraud and making false statements to a bank each provide for a sentence of up to 30 years in prison, five years of supervised release and a fine of $1 million. The charge of filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Nangle is on the House Ethics Committee and part of House Speaker Robert DeLeo’s leadership team as the second division chair.

State House News Service contributed reporting.

Updated 3:45 p.m., Feb. 18, 2020: This story has been updated to include Rep. David Nangle’s not guilty plea.

Charges: Lowell Rep. Fueled Gambling with Fraudulent Loans

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