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Fraud Friday – Maryland Business Owner Sentenced to 17 Years in Federal Prison

January 11, 2019

By Dominic J Bartolone
Contributing Editor, Fraud Friday

Fraud Friday – Maryland Business Owner Sentenced to 17 Years in Federal Prison

A former Frederick, Maryland business owner who was convicted in late 2018 of bank fraud will spend the next 17 years in federal prison for fraudulently obtaining over $49 million in credit.

Mark Ian Gaver, age 56, of Bonita Springs, Florida, and former owner of Gaver Technologies Inc., was sentenced In U.S. District Court in Baltimore to 17 years in prison and ordered to pay $49 million in restitution.  

The U.S. Attorney for the District of Maryland accused Gaver of using more than 100 falsified financial records to obtain several extended lines of credit from Santander Bank.  Gaver submitted false Quarterly Contract Status Reports to the bank, which indicated he had secured contracts with government agencies, such as ATF and NASA while overstating ongoing contracts with other agencies.  The phony reports convinced Santander into extending credit to Gaver eight times between 2008 and 2016.

According to prosecutors, Gaver used some of the funds to purchase a $2.275 million vacation home, a 2012 Maserati GranTurismo, a 2011 Mercedes-Benz Roadster, and spent nearly $800,000 on private plan charters for trips to Europe, the Bahamas, and Mexico, and also paid $285,000 for a private membership to an exclusive Florida golf club.

In all, prosecutors said Gaver diverted some $15 million of loan proceeds for his personal use.

At his trial, Gaver’s defense attorney argued that he was a hands-off successful business owner who enjoyed international travel and luxury cars.  He claimed to the jury that emails between Gaver and Santander Bank officials could have been made by employees who had access to his account.

The jury didn’t buy into defense claims, unanimously finding him guilty of eight counts of bank fraud and two counts of money laundering on Aug. 1, after a seven-day trial.

Gaver was facing a maximum sentence of 30 years in prison for each fraud count, and 10 years for each money laundering charge.

“Mark Gaver committed a massive fraud to maintain his lavish lifestyle,” said United States Attorney Robert K. Hur.  “This sentence ensures that he will not profit from his crimes and will be held accountable for his years of lies.”

On top of his lengthy prison sentence, U.S. District Judge Richard D. Bennett ordered Gaver to forfeit $4.2 million in assets and repay all $48,774,308 in bank loans.  He was also ordered to three years of supervised probation following his release from prison.

Gaver filed a notice of appeal to the 4th Circuit Court of Appeals on December 14.

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