Downers Grove man charged in bank scam

Federal authorities indicted a Downers Grove man with duping a downstate bank out of $2.5 million as part of an elaborate mortgage con job.

Salvatore DiBenedetto, 52, is charged with bank fraud, wire fraud, making a false statement and money laundering.

DiBenedetto is president of two Lombard-based mortgage services companies, Avanti Equity Group and X Factor.

He and accomplices pretended to be handling mortgage services on behalf of Arcola Homestead Savings Bank, prosecutors said.

But instead of legitimate mortgage negotiations, DiBenedetto allegedly preyed upon owners of distressed homes and businesses, stating he represented a third party interested in rehabbing the properties and selling them to buyers.

When owners fell for the scheme, DiBenedetto falsified loan and title documents, pretending to be representing Arcola bank, officials said.

Instead of legitimate transactions, however, he allegedly used the money for his own profit.

DiBenedetto could not be reached for comment.

A hearing is set for Tuesday at the U.S. District Court in Urbana.