Scott Frasca, 48, of Peabody, MA who formerly served as a Peabody library trustee and ran unsuccessfully for City Council in 2013, pleaded not guilty to five counts of obtaining a loan through fraud, forgery, passing a forged document and obtaining a signature by fraud before Judge Thomas Drechsler at the Salem Superior Court.
Frasca operated a charity organization, ‘the Making a Difference in Peabody Foundation’ since 2002, he was also on the board of directors of the Peabody Area Chamber of Commerce, and was the former chairman of Peabody’s Republican City Committee. These positions made him a trustworthy recipient of loans from the banks and credit unions, according to prosecutors.
Between February and March 2015, Frasca obtained more than $68,000 in personal loans from five banks and credit unions, prosecutor Quentin Weld told the Judge.
These loans include $15,000 from Santander Bank, $20,000 from the RTN Federal Credit Union in Danvers, $15,000 from St. Jean’s Credit Union in Lynn, $9,000 from Community Credit Union in Lynn, and $9,500 from the Luso-American Credit Union in Peabody.
“This defendant kept six different addresses in the last two to three years,” Weld said. These addresses were allegedly used by Fraca in perpetrating the scheme.
When the loans were due for repayment, Frasca would claim he did not know about the loans, and will then contact credit bureaus to report that his personal information had been used by someone else to secure loans. He would point to the difference in his current address and the address used on that particular loan application.
“Integral to the scheme was a claim that he did not take out these loans,” Weld explained to the judge.
Frasca allegedly forged a police report purportedly prepared and signed by a Peabody police officer to corroborate his claims of being a victim of identity fraud. Investigators are looking into the possibility that Fracas may have engaged in this similar act even before the loan scheme in February 2015, Weld said in court.
Elliot Weinstein, Frasca’s attorney, defended his client by explaining to the judge that Fraca was in charge of a consulting business that served non-profit organizations before the fraud charges were brought against him. And that “the only employment” he currently has is serving as a driver for Uber, where he has a pending application for a car loan, Weinstein said.
Judge Drechsler ordered Frasca not to apply for any more loans or credit while the case is pending and has scheduled status hearing for July 27.
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