A Jersey City man has pleaded guilty to a $30 million mortgage fraud scheme that has led to $400,000 in losses, U.S. Attorney Philip Sellinger announced.
By John Heinis/Hudson County View
Anthony Garvin, 52, of Jersey City, pleaded guilty via videoconference to one count of conspiracy to commit bank fraud and four counts of bank fraud on Friday before U.S. District Judge Katharine S. Hayden in Newark.
Between 2011 and 2014, Garvin orchestrated a scheme to defraud banks by conspiring with others to fraudulently obtain multiple home equity lines of credit, known as HELOCs, on real estate that Garvin 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.
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 loses to the lenders.
According to his indictment from June 2019, the $30 million scheme ran for nearly seven years – between January 2011 and November 2017.
Furthermore, the superseding indictment alleges that four financial institutions were defrauded for the acquisition of two properties in Jersey City: 239 Fulton Ave. and 42 Union St.
The count of bank fraud conspiracy and each count of bank fraud carries a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross gain to the defendants or twice the gross loss to others, whichever is greatest. Sentencing is scheduled for April 11, 2023.
Two conspirators previously pleaded guilty and are awaiting sentencing.
Sellinger credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Blake Coppotelli and Anthony Torntore of the District of New Jersey.