Related topics

20 BankBoston Staff Disciplined

July 3, 1998

BOSTON (AP) _ Twenty BankBoston Corp. employees were either fired or reprimanded for negligence tied to a $73 million loan scandal.

Ricardo Carrasco, an executive in the bank’s New York office, is accused of embezzling the money through fraudulent loans. Both Carrasco and the money have been missing since February.

BankBoston Chairman Charles K. Gifford on Thursday acknowledged the disciplinary actions, but declined to identify the employees.

Bank officials wouldn’t discuss whether Carrasco’s supervisor, Mark E. Linehan, was one of those terminated. Earlier, Linehan had been temporarily reassigned to another department until an internal investigation was completed, The Boston Globe reported Friday.

Gifford said the scandal exposed flaws in the bank’s lending practices.

For example, employees ignored warnings that Carrasco was making millions of dollars in loans to a businessman with a criminal record, he said.

Update hourly