Foisy's lawyer said his client was drawn into the scheme and manipulated by defendant James June.
The U.S. federal courthouse in Springfield.SPRINGFIELD – A former South Hadley man pleaded guilty Monday to participating in a $75 million, Massachusetts-to-Florida mortgage scam.
Jason R. Foisy, 34, of Port Orange, Fla., pleaded guilty to conspiracy, bank fraud, money laundering and two counts of wire fraud in U.S. District Court.
Foisy and two others – James M. June, 50, of Rockville, Md., and David Tarczynski, 34, of Fort Lauderdale – pleaded innocent in January to a grand jury indictment accusing them of fraudulently buying and refinancing properties from South Hadley to Fort Lauderdale.
The four-year scheme was so profitable that June threw a $100,000 party for Foisy at the Log Cabin one night in 2006, Assistant U.S. Attorney Karen L. Goodwin said. By the time the conspiracy collapsed, the defendants had conducted more than 100 fraudulent transactions, Goodwin said.
Foisy, wearing a black-and-white checkered shirt and jeans, began sobbing as Judge Michael A. Ponsor explained the consequences of his guilty plea.
The maximum penalty for bank fraud is 30 years imprisonment and a $250,000 fine, Ponsor said, adding that the government is also seeking $15,000 in restitution.
Under federal sentencing guidelines, Foisy faces between 70 and 87 months, Goodwin said.
Foisy’s lawyer, Joseph A. Franco, said his client was manipulated by June, whom he described as mastermind of the conspiracy.
Without elaborating, Franco said his client was “particularly susceptible to manipulation.”
Ponsor set sentencing for Oct. 21; Foisy remains free on $50,000 unsecured bail.
Tarczynski, a former Chicopee resident, is scheduled to plead guilty in June, Goodwin said.
June, formerly of South Hadley, is preparing for trial, Goodwin said.