Florida Man Pleads Guilty to $24M Bank Fraud Scheme

A Florida Man’s Sinister Scheme: $24 Million Bank Fraud

Buffalo, N.Y.– In a stunning display of financial chicanery, Frank Garcia, a 51-year-old Florida resident, has pleaded guilty to orchestrating a brazen $24 million bank fraud scheme that left M&T Bank reeling.

According to Assistant U.S. Attorney Trini E. Ross, Garcia, the former owner of Federal Guaranty Mortgage Company in Florida, recruited unsuspecting ‘straw buyers’ to obtain mortgages from M&T Bank and other financial institutions. However, Garcia’s scheme went far beyond mere mortgage manipulation.

He allegedly misrepresented his clients’ assets and liabilities, failed to record liens on the properties, and directed employees to sign loan documents as loan officers. The loan proceeds were then wired into a company associated with Federal Guaranty Mortgage Company, leaving a trail of financial devastation in its wake.

The devastating consequences of Garcia’s actions are stark. M&T Bank suffered a staggering loss of $4,407,515.48, while the total loss to all financial institutions affected by the scheme was approximately $24,000,000.

The law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force, a coalition of federal agencies, regulatory authorities, and state and local law enforcement working together to combat financial crimes.

The case is a testament to the tenacity of law enforcement and the importance of holding individuals accountable for their actions. Sentencing is scheduled for August 15, 2013, at 1:00 p.m. before U.S. District Court Judge Richard J. Arcara.

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