Mortgage Fraud Scheme Nets Hudson County Investor 24-Month Prison Term and $400,000 in Losses

Garvin, based in Jersey City, previously admitted guilt to one count of conspiracy to commit a mortgage fraud scheme and four counts of bank fraud via videoconference before U.S. District Judge Katharine S. Hayden.

A real estate investor from Hudson County, New Jersey, Anthony Garvin, 53, has received a 24-month prison sentence for his involvement in a mortgage fraud scheme resulting in losses over $400,000

The sentencing took place at the Newark federal court. Between 2011 and 2014, Garvin masterminded the fraudulent operation, colluding with others to deceitfully secure multiple Home Equity Lines of Credit (HELOCs) on properties under his ownership. To mislead lenders, Garvin and his accomplices submitted loan applications riddled with false information and falsified supporting documents, including bogus pay stubs, W-2 forms, tax returns, bank statements, and property deeds.

The gains from this unlawful venture were shared among the co-conspirators, and Garvin defaulted on all the loans. This mortgage fraud scheme inflicted substantial losses of $400,000 on the lenders. In addition to the prison term, Hayden also imposed three years of supervised release. Two fellow conspirators have previously entered guilty pleas and are awaiting sentencing.

Last week, Cabral Simpson, a 46-year-old from Orange, New Jersey, confessed to collaborating in the fabrication of counterfeit bank statements and false employee verifications for potential property buyers

This fraudulent group also funneled funds into the buyers’ bank accounts as property purchase deposits. Furthermore, Simpson and his associates submitted deceptive mortgage loan applications, along with forged supporting documents and closing paperwork, prompting lenders to issue over $1 million in loans, ultimately leading to defaults.

These defaults left both the lenders and the U.S. Department of Housing and Urban Development facing losses surpassing $1 million. Conspiring to commit a wire mortgage fraud scheme carries a maximum penalty of 20 years in prison and a fine of either $250,000, twice the scheme’s gross profits, or twice the gross loss incurred by the victims.