New Jersey Man Gets 4 Years for $20M Insurance Scam
A former partner in a New Jersey-based insurance firm is going to prison for four years for his role in a $20 million loan scheme.
Gavin Gatta’s company, Smith Gatta Gelok, assisted businesses in buying commercial insurance. Gatta admitted that he prepared fake applications for financing for businesses that didn’t actually need it.
Prosecutors say he took the money and used it to buy luxury items including an Aston Martin sports car and several Ferraris.
The 48-year-old Gatta, of Wayside, previously pleaded guilty to one count of wire fraud. A federal judge in Newark sentenced him Monday to 48 months in prison and ordered him to pay restitution. It’s expected to reach more than $22 million.
Copyright 2024 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Popular Today
- Update: Fannie Mae Guidelines Raise Concerns, Could Bar ACV Coverage for Homes
- Berkshire’s Jain on Cyber: ‘The Mindset Should Be You’re Not Making Money’
- Truist Finishes Insurance Subsidiary Sale; Broker Rebrands as TIH, Names All-Star Board
- Insurer Chubb Readies $350M Payout Tied to Baltimore Bridge Collapse