Chester Peggese, 59, who previously pleaded guilty to bank fraud and tax evasion charges, has been sentenced to a year in federal prison and five years of probation. He was also ordered to pay restitution of $4.2 million to Broadway Federal Bank and $38,609 to the Internal Revenue Service, according to the IRS.
Peggese, 59, admitted going to local churches between 2007 and 2009 and convincing them that he was a consultant who could help them to either refinance or acquire new properties. Unidentified co-schemers altered the financial statements of the churches, causing Broadway Federal to underwrite their loans. Peggese was paid money out of escrow and kicked back a portion of it to former bank employee Paul Ryan, who has pleaded guilty to receiving bribes and rewards.
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