A 77-year-old Rockford man has been charged with seventeen counts of mail fraud, one count of wire fraud, and one count of securities fraud.
A federal indictment claims that between August of 1997 and October 8, 2008, Anthony F. D'Agostino, the former owner, CEO, and President of Commercial Mortgage and Finance Co., defrauded investors in Commercial Mortgage. According to the indictment, he raised money for the company by selling Promissory Notes and Certificates of Participation to investors.
However, according to the indictment, the company actually had a negative net worth that was steadily increasing under his ownership and D'Agostino hid that fact from the investors, claiming the company's financial position was strong and their investments were safe.
The indictment also states that D'Agostino hid the fact that Commercial Mortgage was run as a Ponzi scheme and sales of new Promissory Notes were being used to pay principal and interest owed on old Promissory Notes.
It is alleged that D'Agostino exposed investors to $20 million in losses. If convicted, each count of mail and wire fraud has a maximum sentence of 20 years in prison and a maximum fine of $250,000 or another fine totaling twice the loss or twice the gain, whichever is greater. Securities fraud has a maximum sentence of up to five years in prison and a fine of up to $250,000.
D'Agostino is scheduled to be arraigned on Thursday, December 27.
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