A former partner of a New Jersey-based insurance brokerage firm was sentenced to 48 months in prison and ordered to pay at least $22 million in restitution for his role in a loan fraud scheme.
Gavin Gatta, 48, a partner in Smith Gatta Gelok, based in Wall Township, N.J., had pleaded guilty to wire fraud in connection with $20 million scheme before Judge Dennis Cavanaugh in U.S. District Court in Newark, N.J.
Gatta, who lives in Wayside, N.J., admitted to preparing applications for premium financing for companies that didn’t need the coverage, according to the U.S. Attorney’s Office. He submitted the fake applications, then had the loans sent back to his firm on behalf of the customers.
He used the more than $20 million he obtained through the scheme to buy jewelry and luxury cars, including an Aston Martin and several Ferarris, prosecutors said.