Westminster Developer Arrested, Charged With Bank Fraud

BOSTON – A Westminster man was charged today in U.S. District Court in Worcester with defrauding Colonial Cooperative Bank in Gardner, Mass.

Lance N. Korich, 53, was indicted with four counts of bank fraud.

The indictment alleges that, from 2008 to 2010, Korich applied for four construction loans at Colonial Cooperative Bank in Gardner. In support of those loans, Korich submitted false and fraudulent purchase and sale agreements. In particular, Korich fabricated the names of the purported home buyers and forged their signatures on the purchase and sale agreements.

If convicted, Korich faces up to 30 years in prison, five years of supervised release and a $1 million fine.

United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Karin M. Bell of Ortiz’s Worcester Branch Office.

The details contained in the Indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.