Phoenix man going to prison for commercial loan fraud
PHOENIX -- A Scottsdale businessman charged with fraudulently obtaining about $3 million in federal loans has been sentenced to nearly three years in prison.
Federal prosecutors said 45-year-old Joseph N. Gagliano of Phoenix received a 30-month prison term and also was ordered Monday to pay more than $2.9 million in restitution.
Gagliano was indicted in the case and originally pleaded not guilty in March 2012.
According to an indictment, Gagliano falsely represented that his father was applying for Small Business Administration loans and loan modifications for two homes in Scottsdale and Phoenix between June 2006 and July 2010.
He also submitted false information to lenders regarding his dad's ownership interests in car washes in Chandler that Gagliano actually owned.
Prosecutors said Gagliano forged signatures, altered bank statements and submitted bogus lease agreements.