Diane Glatfelter, 48, Billerica, Massachusetts, was sentenced for wire fraud charges in connection with a bogus bank guaranty program. Glatfelter defrauded a real estate businessman who was seeking funding for a development project. Glatfelter promised to secure a $20 million loan, but required him to pay $125,000 in up-front fees.
The defendant was sentenced by U.S. District Judge Douglas P. Woodlock to 30 months in prison, three years of supervised release, and ordered to pay $1,575,000 in restitution. In September 2014, Glatfelter was found guilty following a five-day jury trial of four counts of wire fraud.
In 2007 and 2008, Glatfelter engaged in a scheme to defraud a young real estate businessman from California who was seeking funding for a development project. Glatfelter promised to secure a $20 million loan for him, but required him to pay $125,000 in up-front fees. The loan never materialized. Glatfelter used the money for various purposes other than to secure any funding. As part of her scam, Glatfelter set up two bogus front companies and used her unsuspecting sister to make these fronts appear legitimate.
At sentencing, Glatfelter was also held accountable for an additional $1,450,000 in fraud against four other victims in connection with three transactions during the same time period. Glatfelter promised all of the victims that through the efforts of K2 Unlimited and 211 Ventures, she could procure huge sums of money for their projects (up to $100 million), but they would need to pay a percentage of the amount sought up-front in order for her to procure the bank guarantee or the loan, or to participate in the trade program.
The victims wired their payments to Glatfelter’s 211 Ventures and K2 bank accounts, in one instance to her lawyer’s bank account, and thereafter, Glatfelter disbursed the funds to her business partner and to her own temporary staffing agency. She never procured the funding. Glatfelter also provided false reasons for the delays in funding.
United States Attorney Carmen M. Ortiz; Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. The case was prosecuted by Assistant U.S. Attorneys Sandra S. Bower and Christine J. Wichers of Ortiz’s Economic Crimes Unit and Civil Division, respectively.