Joseph N. Gagliano, 45, of Phoenix, was sentenced to 30 months in prison and ordered to pay $2,903,010.26 in restitution by a federal judge on October 28.
The case against Gagliano was based on an investigation by the SBA-OIG and FBI. Between June 2006 and July 2010, Gagliano sought a SBA loan for a car wash located in Chandler and mortgage loans for residential real estate located in Scottsdale and Phoenix. He submitted loan applications that falsely misrepresented that his father, who has the same name, was the actual borrower, and also made misrepresentations concerning his income, assets, liabilities and intent to occupy the residential properties as a primary residence.
Gagliano also forged signatures, altered bank statements and submitted bogus lease agreements. The scheme to defraud resulted in nearly $3 million in losses to the Small Business Administration, Wells Fargo Bank, and JP Morgan Chase.
The investigation in this case was conducted by the Small Business Administration-Office of Inspector General and the Federal Bureau of Investigation.