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Case 7-1
The Greater Providence Deposit & Trust Embezzlement
Nino Moscardi , president of Greater Providence Deposit & Trust ( GPD & T ), received an anonymous note in his mail stating that a bank employee was making bogus loans . Moscardi asked the bank ’ s internal auditors to investigate the transactions detailed in the note . The investigation led to James Guisti , manager of a North Providence branch office and a trusted 14-year employee who had once worked as one of the bank ’ s internal auditors . Guisti was charged with embezzling $ 1.83 million from the bank using 67 phony loans taken out over a three-year period .
Court documents revealed that the bogus loans were 90-day notes requiring no collateral and ranging in amount from $ 10,000 to $ 63,500 . Guisti originated the loans ; when each one matured , he would take out a new loan , or rewrite the old one , to pay the principal and interest due . Some loans had been rewritten five or six times .
The 67 loans were taken out by Guisti in five names , including his wife ’ s maiden name , his father ’ s name , and the names of two friends . These people denied receiving stolen funds or knowing anything about the embezzlement . The fifth name was James Vanesse , who police said did not exist . The Social Security number on Vanesse ’ s loan application was issued to a female , and the phone number belonged to a North Providence auto dealer .
Lucy Fraioli , a customer service representative who cosigned the checks , said Guisti was her supervisor and she thought nothing was wrong with the checks , though she did not know any of the people . Marcia Perfetto , head teller , told police she cashed checks for Guisti made out to four of the five persons . Asked whether she gave the money to Guisti when he gave her checks to cash , she answered , “ Not all of the time ,” though she could not recall ever having given the money directly to any of the four , whom she did not know .