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Estate’s Trustees Sue Bank In Accountant’s Fraud Arrest

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NEW LONDON, Conn. (AP) _ Trustees of a Norwich estate are suing Chelsea Groton Bank to try to recoup some losses from an alleged multimillion dollar fraud scheme that led to the arrest of a local accountant.

The Day of New London reports that trustees of the Kauppinen family trusts recently filed a lawsuit in New London Superior Court against the Groton-based bank. They allege bank officials should have known Norwich accountant F. Robert LaSaracina’s representations were false when they gave him a $1.3 million mortgage on trust-owned property when he was a trustee of the estate.

Federal authorities charged LaSaracina last October with fraud and money laundering. The Day reports that LaSaracina’s alleged mishandling of the Kauppinen trusts led to his arrest.

The bank denies wrongdoing.

LaSaracina didn’t immediately return a message Tuesday.
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Information from: The Day, http://www.theday.com

(Copyright 2011 by The Associated Press.  All Rights Reserved.)

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