How Did a Trusted CPA Help Orchestrate a $19 Million Loan Fraud?

If you think white-collar crime is all Wall Street power plays and offshore shell companies, think again. Christine Gendron, a 61-year-old former CPA from Feeding Hills, Massachusetts, pleaded guilty to a staggering bank fraud scheme that fleeced lenders out of over $19 million. And she didn’t need offshore accounts to pull it off—just fake rent rolls, doctored leases, and a family-run real estate web built on lies. Here’s the kicker: Gendron wasn’t some corporate puppet master. She was a trusted accounting professional. Her story is now a textbook case of how ethical shortcuts, even in small-town deals, can spiral into systemic destruction. As U.S. Attorney Leah B. Foley warned, “Fraud like this doesn’t just hurt banks. It hurts everyone relying on those banks to fund their dreams.”

A Busted Spreadsheet

Let’s peel back how this crew played the system like a fiddle.

Step 1: Stack the LLCs

Gendron’s family business, JLL Realty Developers, was the front for the hustle. Her sister, Jeannette Norman, and brother-in-law, Louis Masaschi, owned dozens of LLCs holding commercial properties in Massachusetts and Connecticut. Many of these properties were floundering, but you wouldn’t know that from the documents sent to banks.

Step 2: Falsify the Paper Trail

Enter Gendron, who wore the hat of “resident CPA” and financial manager. Between 2015 and 2022, she allegedly doctored rent rolls, backdated leases, and forged tenant signatures to inflate revenue on paper. The goal? Trick lenders into thinking the properties were raking in cash.

Here’s how bad it got:

• A property in East Longmeadow was padded to justify an $11.5 million loan from Workers Credit Union.
• Three Springfield properties secured a $6.25 million loan from Freedom Credit Union based on inflated figures.
• JLL Realty applied for up to $60 million in loans using these phony documents.

According to court documents, “the documents contained inflated monthly rental payments and lease expiration dates that bore forged tenant signatures.”

Step 3: Cash In and Ghost 

Once the loans landed, the payments stopped. Masaschi, Norman, and their LLCs either made minimal payments or defaulted altogether. The damage? A stunning $19.3 million in losses across regional financial institutions. 

When Fake Numbers Become Real Damage

Let’s talk receipts:

• Workers Credit Union lost $2 million on one property.
• Freedom Credit Union took a $5.37 million loss.
• Berkshire Bank narrowly avoided a $14 million hit by rejecting two loan applications.

But the real damage was trust. Small banks and credit unions don’t just move money—they fuel local economies. When fraud drains their balance sheets, small businesses, homebuyers, and everyday investors get caught in the crossfire. And Gendron? She didn’t personally pocket loan money, but she did earn $393,000 in salary while helping orchestrate the fraud. Prosecutors want it all clawed back.

Takeaways for Financial Professionals

This saga isn’t just a courtroom drama. It’s a masterclass in what not to do, and a reminder that ethics matter more than ever.

• Family Loyalty Can’t Trump Compliance: Gendron joined JLL Realty “to help her baby sister,” said her attorney. But good intentions don’t excuse bad accounting. Financial professionals must remain objective, especially when personal ties muddy the waters.
• Forensic Accounting Beats Annual Audits: Traditional audits didn’t catch fraud. Internal controls were either weak or bypassed. Forensic auditors trained in deception detection might’ve flagged the falsified rent rolls before millions went out the door.
• Regulators Don’t Miss a Beat: The FBI showed up at Gendron’s home in 2021. By 2025, two defendants had pleaded guilty, and a third awaits trial. In a post-Enron, post-2008 world, regulators now treat financial fraud as a national security risk—and rightly so.
• “Small” Frauds Become Systemic Fast: This wasn’t a one-and-done scam. It was death by a thousand forged leases. As with any slow-burn fraud, the compounding damage undermines institutional trust, one deal at a time.

A Wake-Up Call

Gendron faces up to 30 years in prison, five years of supervised release, and a fine of up to $1 million. Masaschi is due for sentencing on July 23, while Norman’s trial kicks off in October 2025. But the bigger reckoning? That’s for the professionals in real estate, finance, and compliance who now know just how easy it is to fake a loan package, and how devastating the consequences can be. This isn’t just about one rogue CPA—it’s a sobering reminder that compliance lapses, no matter how “minor,” can grow into industry-shaking crises. Whether you're reviewing a rent roll, signing off on a deal, or trusting a family member in business, document everything, verify twice, and never ignore a red flag. Join 250,000+ pros getting MYCPE Insights delivered straight to their inbox. Sharp. Timely. Unfiltered.