N.J. State Commission of Investigation
Bank Fraud in Middlesex County
1972-73
The SCI canceled public hearings in this investigation at the request of
bank examiners who feared a bank would be forced to close in the face of
adverse hearing disclosures. Federal authorities, after receiving the
SCI's investigative findings and data, arrested Santo R. Santisi, who
had been president of the targeted Middlesex County Bank, on charges of
misapplication of more than $500,000 in bank funds, authorizing bank
loans not approved by bank directors to a holding company he controlled
and to his associates. He pleaded guilty and was sentenced to three
years in prison. A member of the bank's board of directors pleaded
guilty and was sentenced to a one-year prison term. Suspended prison
sentences were imposed on two others, including Santisi's lawyer, after
they also pleaded guilty. The Commission's report is contained in its
1972 Annual Report.
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