A Hudson County, New Jersey, real estate investor has been sentenced to 24 months in prison for his role in a fraudulent home equity line of credit scheme that resulted in over $400,000 in losses.
Anthony Garvin, 53, of Jersey City, New Jersey, had previously pleaded guilty to one count of conspiracy to commit bank fraud and four counts of bank fraud via videoconference before U.S. District Judge Katharine S. Hayden, according to a press release from the U.S. Department of Justice.
The sentencing was carried out at the Newark federal court by Hayden.
According to court documents and statements, Garvin orchestrated the fraudulent scheme between 2011 and 2014. He collaborated with others to fraudulently obtain multiple HELOCs on properties he owned.
To deceive lenders, Garvin and his co-conspirators submitted loan applications containing false information and fabricated supporting documents, such as counterfeit pay stubs, W-2 forms, tax returns, bank account statements, and property deeds.
Garvin, in turn, shared the proceeds of this illicit operation with his co-conspirators and ultimately defaulted on all the loans. The fraudulent activity resulted in a staggering $400,000 in losses for the lenders involved.
In addition to the prison sentence, Hayden also sentenced Garvin to three years of supervised release. Two other co-conspirators have previously pleaded guilty and are currently awaiting sentencing.
Last week, Cabral Simpson, a 46-year-old resident of Orange, New Jersey, admitted to collaborating with co-conspirators in fabricating bank statements and fake employee verification records for prospective property buyers, the U.S. Department of Justice said in a press release.
They also transferred funds into the buyers’ bank accounts as deposits for property purchases.
Furthermore, Simpson and his co-conspirators submitted fraudulent mortgage loan applications, along with forged supporting documents and closing paperwork on behalf of these buyers, inducing lenders to issue more than $1 million in loans, which subsequently led to defaults.
The defaults exposed both the lenders and the U.S. Department of Housing and Urban Development to losses exceeding $1 million.
Conspiracy to commit wire fraud carries a maximum penalty of 20 years in prison and a fine, which can be either $250,000, twice the gross profits derived from the scheme, or twice the gross loss suffered by the victims.