Washington County Man Sentenced To 57 Months In Prison For Mortgage Fraud Scheme
PITTSBURGH, Pa. - A resident of Washington, Pa., has been sentenced in federal court to 57 months in prison on his convictions for mail fraud, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Kenneth McGavitt, 58. The sentence imposed also required McGavitt to pay restitution in excess of $3,000,000.
According to information presented to the court, McGavitt participated in a scheme to defraud lenders in connection with $4,000,000 of commercial loans. The loans were collateralized by a buildings that the defendant owned. The defendant made false representations to the lenders about the amount of lease tenants in those buildings were paying. In addition, the defendant presented the lenders with a forged amendment to a lease agreement and other fraudulent documents to secure the loans.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Mortgage Fraud Task Force for the investigation leading to the successful prosecution of McGavitt. The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Task Force include the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigation; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff's Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.
Protect yourself from fraud, and report suspected cases of financial fraud to local law enforcement.