Frank Garcia, Fraud Affecting a Financial Institution, New York 2013

Buffalo, NY (June 6, 2026) - In a shocking turn of events, Frank Garcia, 51, of Florida, pleaded guilty to fraud affecting a financial institution, a crime that carries a maximum penalty of 30 years in prison, a fine of $1,000,000, or both. According to court documents, Garcia's scheme led to a staggering loss of $24,000,000 for M&T Bank and other financial institutions.

Garcia, the former owner of Federal Guaranty Mortgage Company in Florida, recruited 'straw buyers' to obtain mortgages from M&T Bank and other financial institutions. He then misrepresented their assets and liabilities, failed to record the liens on the properties in the county clerk's office, and failed to pay off pre-existing liens on the properties when they were transferred from one owner to another.

As part of the scheme, Garcia directed employees of Federal Guaranty Mortgage Company to prepare loan packages for borrowers, which were then sent to the investor financial institutions, including M&T Bank. The loan proceeds for the fraudulent loans were subsequently wired into the account of a company associated with Federal Guaranty Mortgage Company.

The devastating effects of Garcia's actions were felt by M&T Bank, which suffered a loss of $4,407,515.48. The total loss to all financial institutions affected by the fraudulent scheme was approximately $24,000,000.

This law enforcement action is part of President Barack Obama's Financial Fraud Enforcement Task Force, which aims to combat financial crimes and ensure just and effective punishment for those who perpetrate them.

Garcia's plea is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.

Sentencing is scheduled for August 15, 2013, at 1:00 p.m. before Judge Richard J. Arcara.

Mandatory Facts:

Defendant/Respondent: Frank Garcia

Criminal Charges: Fraud Affecting a Financial Institution

City and State: Buffalo, NY

Exact Date: August 15, 2013

Sentence or Outcome: Plea, faces up to 30 years in prison, a fine of $1,000,000, or both

Dollar Amounts: $24,000,000 (total loss), $4,407,515.48 (loss to M&T Bank)

Source: https://www.justice.gov/usao-wdny/pr/florida-man-pleads-guilty-fraud-scheme-against-mt-bank