A Trinidadian national is awaiting sentencing in the US after admitting to fraudulently applying for and obtaining more than US$3 million in home equity line of credit loans in the United States.
Garth Anthony Gardner, 49, pleaded guilty on Monday to two counts of bank fraud, according to the United States Attorney’s Office (USAO) for the District of Columbia.
Plea agreement
He faces an estimated 51 to 63 months in prison and a fine of up to US$100,000. A plea agreement calls for him to pay US$3,165,294 in restitution to 24 financial institutions and a forfeiture money judgment in the amount of US$2,048,446.
Sentencing in the US District Court for the District of Columbia is scheduled for September 24. Gardner remains in custody pending sentencing.
According to the evidence led by the state, Gardner in October 2003 purchased a property in Washington, D.C., using the Social Security number of another person and falsely representing himself as a US citizen. In May 2005, he used a corporation that he owned to purchase a second property in Washington, D.C.
According to the US Attorney’s Office, Gardner transferred ownership of the second property from the company to himself for US$10. He then applied for a series of home equity line of credit loans using the two properties as collateral.
By settling these loans in close proximity to each other, the USAO said, Gardner “minimized the banks’ ability to learn about the other loans.”
Obtained 12 home equity loans from 12 banks
From August to October 2004, Gardner obtained 12 home equity line of credit loans from 12 different banks, secured by one of the properties, totaling about US$1.4 million; between March and April 2006, he applied for 13 loans and obtained 12, totaling about US$1.9 million, secured by one of the properties.
Around February 2008, he stopped making payments and defaulted on all the loans.
“The banks discovered Gardner’s fraudulent conduct after initiating foreclosure proceedings on the properties,” the USAO said.
It said Gardner admitted that he used a portion of the proceeds from the fraudulent scheme to purchase 15 silver bars, which the government recovered and liquidated for about US$1.1 million.
Gardner was arrested in Frankfurt, Germany in May 2017, and was extradited to Washington, D.C. in February 2018 to face the charges that had been pending since 2014.
