Saying that she had "understanding and knowledge" to bilk a Broome County, N.Y., credit union out of millions of dollars, leading to its liquidation, a judge sentenced a Hallstead woman to five years in prison for bank fraud.
After completing her prison sentence, 47-year-old Laura Conarton will serve five years of probation. She was sentenced Thursday, one day after her son, Scott Lonzinski, 32, of Clifford, received the same sentence for the same crime.
Ms. Conarton and Mr. Lonsinski bilked the Broome County Teachers Credit Union out of millions by obtaining 10 loans secured by fabricated certificates of deposit from June 2009 through February 2011. Ms. Conarton worked as the manager and bookkeeper of her son's company, Scott Lonzinski Construction.
On Thursday, Ms. Conarton offered her apologies to the court, the community and her friends.
"I take full responsibility for what I've done," she said.
Before issuing the sentence, U.S. District Judge Thomas McAvoy told Ms. Conarton her actions created a terrible amount of damage, adding, "I'm sure your purpose wasn't to cause the collapse of the Broome County Teachers Credit Union."
But the judge also referenced Ms. Conarton's 15 years of experience working in the banking industry.
"You had the understanding and knowledge to create the scheme," he said.
Judge McAvoy said that in addition to the sentence being a punishment for Ms. Conarton, it also needed to serve as a warning to others.
"People have to know this kind of conduct brings harsh penalties," he said.
Ms. Conarton and Mr. Lonzinski are also jointly responsible for paying back more than $14 million to the National Credit Union Administration.
The NCUA took over day-to-day operations of the BCT and the credit union's assets were eventually sold to Visions Federal Credit Union. No members or clients of BCT lost money as a result of the liquidation of BCT.
Contact the writer: swilson@ independentweekender.com