James June, former South Hadley man, sentenced to 81 months in mortgage fraud scheme
SPRINGFIELD — A former South Hadley man was sentenced Monday to nearly seven years in federal prison for defrauding multiple lending institutions in a complex mortgage fraud scheme that involved more than 100 real estate transactions in Florida and western Massachusetts.
The scheme resulted in several property foreclosures in South Hadley, according to prosecutors.
The sentence imposed by U.S. District Court Judge Michael A. Ponsor against James June, 52, now of Rockville, Md., calls for 81 months in prison followed by five years of supervised release and $15 million in restitution. June had pleaded guilty in April to charges of conspiracy, wire fraud, bank fraud and money laundering.
According to U.S. Attorney Carmen Ortiz, June orchestrated a multimillion-dollar mortgage and bank fraud scheme that entailed multiple business lines of credit out of a West Springfield bank. The fraud encompassed $75 million in loans, most of which went into default.
The scheme reached its pinnacle in October 2006 when June and a co-defendant, Jason Foisy, 35, began construction of a $6.6 million waterfront home in an exclusive area of Fort Lauderdale, according to Ortiz.
Foisy, of Port Orange, Fla., pleaded guilty to related charges last year and Ponsor in February sentenced him to 4½ years in prison, followed by five years of supervised release, and ordered him to pay $15 million in restitution.
Another former South Hadley man, David Tarczynski, 40, was sentenced earlier this year in federal court to 20 months in prison for his part in the scheme and ordered to pay $923,000 in restitution.
Court records said Tarczynski conspired with Foisy and June to falsify mortgage applications and loan refinancing for themselves, friends and relatives on more than 100 properties here and in Florida from 2003 to 2007.
The trio also set up fake businesses to secure more than $1 million in bank lines of credit, authorities said. Court papers showed fraudulent loans and refinancing agreements for seven South Hadley properties, five of which went to foreclosure.
Records show all three men lived in South Hadley at various times: Tarczynski at 7 Shadowbrook Estates, Foisy at 7 Tigger Lane and June at 98 Lathrop St.
The case was investigated by the Internal Revenue Service’s Criminal Investigation unit, the South Hadley Police Department, the Massachusetts State Police, and Northwestern district attorney’s office. It was prosecuted by Assistant U.S. Attorney Karen L. Goodwin and Alex Grant of Ortiz’s Springfield branch office.
Dan Crowley can be reached at email@example.com.