Boston, MA... Three Massachusetts men pleaded guilty yesterday in federal court in connection with their roles in a scheme involving more than $20 million in fraudulent commercial loans for the purchase of construction equipment.

United States Attorney Michael J. Sullivan and Kenneth W. Kaiser, Special Agent in Charge of the Federal Bureau of Investigation in New England, announced that three men charged as “straw borrowers” for loans pleaded guilty before Chief U.S. District Judge Mark L. Wolf to charges of conspiracy, mail fraud and wire fraud.

Those pleading guilty were:

1. MATT A. HAVEY, 35, of 130 Russell Street in Malden;

2. LOUIS A. PARADISO, age 33, of 1739 Revere Beach Parkway in Everett; and

3. SEAN SACCO, age 32, of 21 frost Avenue in Dorchester.

Specifically, HAVEY pleaded guilty to conspiracy, 1 count of wire fraud and 1 count of mail fraud; PARADISO pleaded guilty to conspiracy, 3 counts of wire fraud and 1 count of mail fraud; SACCO pleaded guilty to conspiracy and 1 count of mail fraud.

At yesterday’s plea hearing, the prosecutor told the Court that, had the case proceeded to trial, the government’s evidence would have proven that when Peter Maggio operated companies in Medford, Massachusetts under the names Earth Site & Utility Corporation and Earth Management & Equipment Co., Inc., he solicited and paid HAVEY, PARADISO and SACCO to act as fraudulent “straw” borrowers for commercial loans to purchase heavy duty equipment. HAVEY, PARADISO and SACCO traveled to Maine and to New York to sign as borrowers for millions of dollars of loans in their names knowing that they had neither the ability nor the intention to repay the loans.

According to statements made in yesterday’s and earlier hearings, from January 1998 to May 2000, the defendants participated in a scheme along with Maggio and others to obtain commercial loans for the purchase and lease of heavy duty equipment for Maggio’s Medford companies. The trial evidence would have shown that Jeffrey Deveau, who operated a construction equipment dealership in Syracuse, New York, assisted Maggio in obtaining the fraudulent loans and shared the proceeds with Maggio. HAVEY, PARADISO and SACCO were paid by Maggio to act as "straw" borrowers and sign fraudulent loan documents in their names. Additional evidence at trial would have proven that co-defendant William Howe, an accountant, prepared fictitious financial records for submission to the lenders, and that co-defendant Michael R. O’Neill took kickbacks to help obtain approval for fraudulent loans from a lending company he worked for as a district sales manager. Maggio also obtained fraudulent duplicate titles to illegally sell vehicles which were obtained with the fraudulent the loans.

Chief Judge Wolf scheduled sentencing for September 20, 2006. Each defendant faces up to 5 years in prison, to be followed by 3 years of supervised release, and a fine of $250,000 on each count.

Co-defendant Peter V. Maggio, age 40, formerly of Wenham, Massachusetts, pleaded guilty in April to his role in the fraud scheme and is also scheduled to be sentenced on September 20, 2006 by Judge Wolf. Co-defendant Jeffrey A. Deveau, age 43, of 8072 Indian Hill Road, Manlius, New York, previously pleaded guilty and was sentenced in Syracuse, New York, to 1 year and a day in prison, to be followed by 3 years supervised release. He was also ordered to pay restitution in the amount of $15,655,000. Co-defendants O’Neill, age 49, of 807 Cobblestone Court, West Chester, Pennsylvania, and Howe, age 64, of 53 Garfield Road, Melrose, Massachusetts, are awaiting trial before Judge Wolf.

The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Victor A. Wild in Sullivan’s Economic Crimes Unit.

Press Contact: Samantha Martin, (617) 748-3139