Vestavia Hills Father And Son Arrested In Bank Fraud Scheme

BIRMINGHAM, AL — A father and son from Vestavia Hills have been arrested and face multiple charges in a federal bank fraud case.

A 26-count indictment filed in U.S. District Court charges Christopher A. Montalbano, 38, and Gus Anthony Montalbano, 75, with conspiracy to commit bank fraud, false statements on a loan application, and money laundering. Christopher Montalbano was also charged with aggravated identity theft and bank fraud. Christopher Montalbano and Gus Montalbano were arrested Thursday at their respective homes in Vestavia.

According to the indictment, from 2015 through February 2020, the men conspired to submit fraudulent information regarding their income to numerous financial institutions in support of numerous fraudulent loan applications to purchase boats, luxury vehicles and heavy equipment.

The defendants submitted fraudulent personal and corporate financial statements, tax returns, pay stubs, W-2s, invalid Hull Identification Numbers (HINs), and invalid Vehicle Identification Numbers (VINs) in support of the loan applications, according to court documents.

In addition, the defendants applied for and obtained multiple loans for the purpose of purchasing a luxury vehicle without disclosing that they had already financed the purchase of the same luxury vehicle with a different financial institution, the indictment states. The funds obtained from the fraudulent loans were used to pay for personal living expenses and make loan payments owed to other financial institutions.

The indictment also says that in March 2018 and September 2018 Christopher Montalbano fraudulently used the identity of another individual on an application for loans submitted to USAA Bank.

The indictment also charges Christopher Montalbano with bank fraud due to the violation of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, and says that on April 29, 2020, Montalbano submitted to Cross River Bank a fraudulent PPP loan application for LSA Corporation.

Montalbano fraudulently represented that the funds he sought for LSA Corp. would “be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments” when, in fact, he intended to use the funds he obtained from the PPP for personal expenses.

On April 30, 2020, Cross River Bank approved and deposited $58,153.00 into the LSA Corporation’s bank account.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice, in partnership with agencies across government, to enhance efforts to combat and prevent pandemic-related fraud.

The Task Force assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts