A former loan officer at the $ 604 million Consumer’sCreditUnion in Waukegan , Ill. was sentenced in federal court last week to 35 months in prison and ordered to pay restitution for a scheme that involved $ 1.4 million in fraudulent loans , according to the U.S. Attorney ’s Office in Milwaukee , Wisc . James Scalzo , 46 , who also worked as a loan officer at Fox River State Bank in Burlington , Wisc . , pled guilty to money - laundering and bank fraud charges earlier this year after admitting in a plea agreement that he originated and approved fraudulent loans at both FIs in 2008 - 2009 , according to a statement from the U.S. Attorney for the Eastern District of Wisconsin . Scalva was ordered to serve three years supervised release following his prison term and to pay $ 200 in special assessments , the press release said , with the terms of restitution to be determined at a later date . The U.S. Attorney ’s Office said Scalvo ’s actions caused personal and financial hardship to numerous victims , including a couple whose home was pledged as collateral for a fraudulent loan and then allowed to go into foreclosure . ;