A Jersey City real estate investor admitted to conspiring to orchestrate a multiyear mortgage scheme via a fraudulent home equity line of credit.
Anthony Garvin pleaded guilty before a federal judge in Newark Dec. 2 to one count of conspiracy to commit bank fraud and four counts of bank fraud.
The count of bank fraud conspiracy and each count of bank fraud carriers a maximum potential penalty of 30 years in prison and a fine of $1 million or twice the gross gain to the defendants or twice the gross loss to others, whichever is greatest.
In a press release put out Monday, U.S. Attorney for the District of New Jersey Philip Sellinger said the scheme led to more than $400,000 in losses.
According to court documents and statements in court, Garvin orchestrated the scheme and conspired with others to fraudulently obtain multiple home equity lines of credit, known as HELOCs, on real estate he owned.
“To hide his fraud from lenders, Garvin and his conspirators prepared and submitted loan applications that contained lies and fake supporting documents, including fake pay stubs, W-2 forms, tax returns, bank account statements, and deeds,” the U.S. Attorney’s Office wrote in its announcement, citing those documents and statements. “Garvin split his fraud proceeds with his conspirators and defaulted on all of the loans. Garvin’s scheme ultimately resulted in over $400,000 in losses to the lenders.”
Garvin is set to be sentenced April 11, 2023.
Two conspirators who previously pleaded guilty are awaiting sentencing.