Man accused of running loan scheme

WILLIAMSVILLE, N.Y. (WIVB) - A Williamsville man has been indicted on charges he ran a loan scheme that resulted in at least one victim losing over $400,000.

A federal grand jury indicted Nicholas Mussolini, 30, on six counts of running a loan scheme. Prosecutors say Mussolini ran Preston Waters Corporation, a company that claimed it could obtain large loans for other companies. Mussolini allegedly told other companies they needed to give him a deposit in order to secure loans on their behalf.

Knob Hall Winery gave over $400,000 to Mussolini, believing their company could then obtain a loan for $11 million. But prosecutors say Mussolini used the money for personal and other expenses and to repay other victims of the scheme.

If convicted of running a loan scheme, Mussolini could face 20 years in prison.