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.
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