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www.berksmontnews.com The Boyertown Area Times • May 5, 2005 3 Local News Web of deceit Give Your Favorite Mom a Senior Circle Membership! detailed in bank lawsuit Healthy Living M OTH ER ’ S D AY IS S UNDAY, M AY 8 TH By Michael Lello demanded money from him to increase her line of credit to for the 50+ Crowd It’s the perfect Gift of Healthy Living Special to The Times remain quiet. $500,000. The documents false- Just Got Healthier! for Mothers, Grandmothers, Aunts, Sisters... Casting a web of deceit ly listed her as a doctor living in anyone 50+ looking for a healthier lifestyle! Whether you are looking A 2005 BMW and a 2005 Mawhinney’s story starts out Philadelphia making nearly to meet new people, Just $15 for a one year membership! Toyota. A new New Jersey home like many in corporate America: $400,000 a year and having a hoping to begin an and a $40,000 American a hard-working, trustworthy net worth of more than $1 mil- exercise program, interested in learning Buy your gifts today: 610-327-7600 Express bill, all on a $65,000-a- employee doing his best to bet- lion. more about healthcare, year salary. ter the company and his career. Mawhinney, the suit says, or wishing to experience That’s the life Edward G. Referring to Mawhinney, but not also created a checking account new travel adventures. Mawhinney was living thanks to naming him, at Monday’s annu- in Cheryl Gsell’s name through We have a place for you. the millions of dollars he was al shareholders meeting, which he funneled funds from funneling from his employer, National Penn Chairman Wayne other fraudulent lines of credit, Join today for just $15.00 Boyertown-based National Penn R. Weidner called him "a bright loans and checking accounts. He Bank. It’s the picture painted in individual." Indeed, Mawhinney forged checks and removed a civil suit filed last week by the began working for National funds from these accounts bank’s parent company, Penn on August 5, 1996, and including $275,000 from a line National Penn Bancshares. "successfully developed busi- of credit to purchase his home in Mawhinney held a vice pres- ness" and received "several pro- January of 2002. In some cases For Information: ident title with National Penn as motions," according to the suit. he deposited the money into 610-327-7600 You’re A Senior. You Enjoy Life. Join Our Circle! a mid-level loan officer in the Mawhinney worked in the accounts belonging to his wife bank’s private banking division bank’s retail division in and his parents Edward W. and in Philadelphia. The suit alleges Montgomery and Bucks coun- Roseanne Mawhinney and "oth- that Mawhinney, with the help ties before he became a vice erwise conveyed" funds to the OF TH E GREATER POT TSTOWN AREA of his wife, Jayne Mawhinney, president focusing on private dental companies named in the sponsored by Pottstown Memorial Medical Center and former National Penn banking and commercial lend- suit. 1600 East High Street • www.pottstownmemorial.com employees and customers, stole ing in National Penn’s One Penn He used the stolen money to $6.7 million from the bank. Center branch. buy the home, the cars and In addition to the civil action, He resigned on or around "repeatedly paid his personal the case is under investigation Dec. 17, 2004, effective Dec. American Express bill and other by the FBI and the Federal 29, 2004, according to the suit. personal expenses" from Cheryl Prosecutor’s office in In 2001, Mawhinney began Gsell’s account. National Penn Philadelphia, according to to falsify National Penn cus- estimates that he converted at National Penn. Neither govern- tomers’ loan applications, tax least $500,000 of the bank’s ment body has commented on returns, personal financial state- money for his own use and his the case. ments and other documents and wife’s use. After resigning from started to forge signatures of The beginning of the end National Penn in December, customers and bank employees Mawhinney became involved Mawhinney began working for in order to "wrongfully gain with several Philadelphia dental Sovereign Bank, The Mercury bank approval for important firms, many at the same address, has learned. It was not clear in amounts of credit for the benefit 437 Chestnut St., Suite 500. He what capacity he worked at of himself, Jayne Mawhinney" created phony loans for the Sovereign or when he left and the other defendants, the companies -- Total Dental Sovereign. The fraud was dis- suite alleges. He then completed Concepts, Rush Dental covered by National Penn in the line of credit applications, Associates and Suite Tooth January and revealed publicly in applied for approval and drew LLC, as well as the related February. money from the false lines of MDC West Real Estate. "Mr. Mawhinney was recent- credit. No National Penn cus- According to the suit, the "total ly employed by Sovereign tomers authorized him to do so, dental defendants," as the suit Bank," Sovereign spokesman the suit says. The suit also says refers to the group, knew that Carl Brown said this week in a that Mawhinney created several the loans were unauthorized by prepared statement. "It is our of these lines of credit for his National Penn but accepted bank’s policy that we don’t com- relatives and defrauded them by them anyway, and they have not ment on personnel matters." stealing their identities as well made any payments on the In addition to the as funds drawn in their names. loans. Mawhinneys, the civil suit Most notable was In March 2004, Mawhinney names: Christine Duvall of Mawhinney’s manipulation of created a $1.1 million construc- Oxford, Chester County; John documents in the name of his tion loan for MDC. The suit says Ferraro of Oreland, sister, Mary Gsell, and his niece, that the draws on the loan were Montgomery County; Michael Cheryl Gsell. For Mary Gsell, taken from, among other things, Ayes, Howard Koff, Richard Mawhinney created a 2002 tax Mary Gsell’s checking account, Rush and Mitchel Blumenthal, return that inflated her income Cheryl Gsell’s checking as general partners trading as so that she would qualify for a account, lines of credit in favor Northeast Real Estate $600,000 loan he applied for in of Mark and Maureen Partnership, of Philadelphia; as her name; he forged her signa- Barraclough and other "dummy" individuals, Ayes, of Bala ture on both documents. He accounts and lines of credit cre- Cynwyd; Koff, of Jenkintown; falsely reported that she was a ated by Mawhinney. Rush, of Bala Cynwyd; and lawyer with assets of more than On Dec. 13, Mawhinney cre- Blumenthal, of Gladwyne; Marc $500,000. She was unaware of ated a fraudulent line of credit, Ayes, of Cherry Hill, N.J.; and all of this, according to the suit. signed by Michael Ayes. The Total Dental Concepts, MDC Mawhinney had the loan state- "total dental defendants," the West Real Estate, Rush Dental ments sent to him at his One suit says, had been drawing Associates and Suite Tooth Penn Center office so he could money on it, though, since ZERN’S LLC, all of Philadelphia. conceal the fraud from Mary March, 2004. The suit is complicated and Gsell. Mawhinney created the line rife with twists. The suit alleges that Duvall, of credit after the fact when he Some of the more notable Mawhinney’s administrative knew he was leaving National moments occurred when assistant, and Ferraro, the One Penn to "cover his tracks" and Mawhinney opened fraudulent accounts for his sister and niece, who live in California, unbe- Penn Center branch manager, knew about the fraudulent loans but did not tell National Penn keep his scheme from bank auditors, the suit alleges. MDC, the suit says, participated in the FARMER’S MARKET 1100 EAST PHILADELPHIA AVE. knownst to them, in order to that Mawhinney was receiving fraud by "executing the line of steal millions from National Penn; when Philadelphia dental the statements. He used a similar process to create other lines of credit after it had already accept- ed the proceeds of the undocu- GILBERTSVILLE companies accepted fraudulent credit in his sister’s name, and mented loan." 610-367-2461 loans from National Penn, ultimately, $1.8 million of unau- The loan was used to con- www.Zerns.com including one to build a new thorized credit was created in struct a building at 1001 facility in Media, through her name. Cheryl Gsell, mean- Baltimore Pike in Media. DEFINITELY NOT A MALL Mawhinney, and didn’t pay back while, applied for and received a National Penn is seeking a lien the loans; and when $6,000 line of credit from on the property, as well as REGULAR HOURS: FRIDAY 2 P.M.-10 P.M. • SATURDAY 11 A.M.-10 P.M. Mawhinney’s employees National Penn. Mawhinney then Mawhinney’s home and vehi- destroyed documents to help cover up the scheme before they submitted false tax returns and a loan application to the bank to cles. 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"Web of deceit detailed in bank lawsuit"