WILKES-BARRE - A former PNC Bank investment broker pleaded guilty to bilking more than $500,000 from customers, all of whom were at least 65 years old.
Appearing before Senior U.S. District Judge A. Richard Caputo in federal court Wednesday, Nicholas J. Polito Jr. bowed his head and uttered "yes sir" in a gravelly voice when the judge asked him if he committed bank fraud.
Mr. Polito, 65, of Dunmore, pushed money from customers' accounts into his PNC investment and personal checking account, according to federal prosecutors. In all, he defrauded about eight customers of about $535,885.
To steal their money, he forged investors' names on the backs of checks and deposited the checks into his investment account and created fictitious account statements, assistant U.S. Attorney John C. Gurganus Jr. said.
"The paper trail was quite clear as to what was going on," Mr. Gurganus said.
Mr. Polito, who worked at a PNC Bank in Scranton, agreed to plead guilty to felony bank fraud, waiving his right to trial and indictment by a grand jury.
He was released on his own recognizance. Outside the courthouse after the hearing, he declined to comment.
He could face a maximum sentence of 30 years in prison and a $1 million fine.
However, under the terms of the plea agreement reached with federal prosecutors, if Mr. Polito makes full restitution at the time of sentencing, prosecutors will recommend the judge impose the minimum sentence under federal sentencing guidelines.
The plea agreement does not state the minimum sentence. Mr. Gurganus and Mr. Polito's attorneys, Lawrence Moran and Patrick Casey, did not reveal specifics of what that sentence could entail at Mr. Polito's hearing.
If he fails to make restitution, the government can recommend the judge impose up to the maximum sentence. Judge Caputo is not bound by the plea deal.
Mr. Polito also cannot withdraw his guilty plea if the judge hands down a harsher sentence, according to the agreement.
After the hearing, Mr. Moran said a minimum sentence for bank fraud can range from probation to incarceration.
"Today is another step in my client's process in accepting responsibility for the mistakes he made," Mr. Moran said. "Restitution is definitely a component."
Mr. Polito's sentencing date is set for Jan. 25.
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