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A Ludlow woman pleaded guilty earlier this week in federal court in Springfield to bank fraud.
Beth Zastawny, 53, pleaded guilty to one count of bank fraud and three counts of money laundering. Sentencing is scheduled for Oct. 1.
Zastawny committed bank fraud in connection with a $4.2 million loan package for her Chicopee-based company, Diecast Connections Co. Inc. Blue Hills Bank, relying upon Zastawny’s false representations, extended the loans in January 2015.
Zastawny submitted fake financial statements to the bank, and she made false representations about Diecast’s assets and liabilities to make it appear that Diecast’s financial condition was much stronger than it was.
After obtaining the loan proceeds, Zastawny paid back creditors who had not been disclosed to the bank, and the funds were used for purposes not called for in the loan agreement between Diecast and Blue Hills Bank. Blue Hills Bank foreclosed on the loan after in July 2016 Zastawny failed to meet the terms of the loan agreement, which resulted in a substantial loss for the bank.
