Bucks County Man Charged In Bank Bilking Conspiracy

PHILADELPHIA - Joseph Rosko, III, 36, of Ambler, PA, was charged by Information, filed on February 19, 2016, with misapplication of bank funds and conspiracy, announced United States Attorney Zane David Memeger.

Rosko was the Commercial Loan Officer at Earthstar Bank in Southampton, PA, from approximately April 2009 until May 2010 and had an Earthstar credit card.  Rosko and David Lyster, the Chief Lending Officer (charged elsewhere), agreed that Lyster would eliminate the minimum monthly payment requirement from Rosko’s credit card.  Over time, Lyster raised Rosko’s credit limit to $65,000.  Rosko exceeded his credit limit on the card and defaulted on the account.  One of Rosko’s customers at Earthstar Bank, W.R., had an Earthstar Bank credit card with a credit limit of $15,000, and W.R.’s company had six business loans with Earthstar Bank totaling approximately $250,000.  As of March 2010, W.R. had reached the credit limit on his Earthstar credit card, and his company’s loans were non-performing.  Rosko solicited Lyster to eliminate the minimum payment term and the cash advance fee on W.R.’s Earthstar Bank credit card.  Thereafter, W.R. withdrew almost $50,000 in cash advances on the card.  Ultimately, W.R. exceeded the $75,000 credit limit on the credit card, and defaulted on the card.

Rosko obtained a one-third ownership interest in a struggling pizza restaurant owned by J.P.  At that same time, W.R. (Rosko’s bank customer) also obtained a one-third interest in the restaurant.  J.P. (the original owner) retained a one-third interest.  At approximately the same time, Rosko arranged for an Earthstar Bank credit card with a “no minimum payment” term to be sent to J.P.  J.P. withdrew more than $30,000 in cash advances on the card.  In September 2010, J.P. exceeded the $35,000 credit limit and defaulted on the card.

If convicted, Rosko faces a maximum possible sentence of 35 years in prison, up to five years of supervised release, a possible fine, and a $200 special assessment.  Full restitution of as much as $124,891 also shall be ordered.           

The case was investigated by Office of Inspector General of the Board of Governors of the Federal Reserve System’s Consumer Financial Protection Bureau, the Office of Inspector General of the Federal Deposit Insurance Corporation, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Karen L. Grigsby.

An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.