14 September – LAWFUEL – The Law News Network – R. Alexander Acosta, United States Attorney for the Southern District of Florida, Michael S. Clemens, Special Agent-in-Charge of the Miami Office of the Federal Bureau of Investigation, and Edward Hillery, Chief, Ocean Ridge Police Department, announced today the arrests of defendants, Edward Garnett, 62, and Shirley Akey, 69, both of Fort Lauderdale, Florida on an eighteen (18) count real estate loan and bankruptcy fraud Indictment.
Garnett and Akey were both charged with one count of conspiracy, in violation of 18 U.S.C. § 371; three counts of loan application fraud, in violation of 18 U.S.C. § 1014; two counts of mail fraud, in violation of 18 U.S.C. § 1341; three counts of wire fraud, in violation of 18 U.S.C. § 1343; and three counts of money laundering, in violation of 18 U.S.C. § 1956. Garnett was charged with one additional count of loan application fraud, in violation of 18 U.S.C. § 1014; two additional counts of mail fraud, in violation of 18 U.S.C. § 1341; and three counts of bankruptcy fraud, in violation of 18 U.S.C. § 152.
As charged in the Indictment, Garnett fraudulently obtained twelve mortgage loans totaling almost $6 million, using luxury properties in which he lived as collateral. To obtain the mortgage loans, Garnett submitted loan applications containing false financial information in both his name and in the names of certain nominees. The false financial information included overstated income, overvalued assets, false employment information, and false tax information. Garnett and Akey also arranged for the nominees to become signatories on Akey’s accounts, so that the nominees would appear to have assets sufficient to qualify for the loans for which they were applying. Through this scheme, Garnett received more than $1.4 million from these loans, much of which was shared with his longtime close personal friend, Akey. Akey also concealed the monies for Garnett and laundered the money through her bank accounts.
According to the Indictment, Garnett filed for bankruptcy in 2002 and fraudulently concealed his interest in certain properties located in Delray Beach, Florida, from the Bankruptcy Court, creditors and the United States Trustee. Garnett also failed to disclose a $272,000 unrecorded Mortgage Note related to the properties in the same bankruptcy, and again when he filed for bankruptcy in April, 2005.
Garnett and Akey’s initial appearances are currently scheduled for September 14, 2005 before the Honorable Linnea R. Johnson in Fort Pierce, Florida.
The maximum statutory sentence for the conspiracy count (Count 1) is five (5) years’ imprisonment and a $250,000 fine; the maximum statutory sentence for each of the loan application fraud counts (Counts 2 – 5) is thirty (30) years’ imprisonment and a $1,000,000 fine; the maximum statutory sentence for one of the mail fraud counts (Count 6) is five (5) years’ imprisonment and a $250,000 fine; the maximum statutory sentence for each of the other mail and wire fraud counts (Counts 7 – 12) is twenty (20) years’ imprisonment and a $250,000 fine; the maximum statutory sentence for each of the bankruptcy fraud counts (Counts 13 – 15) is five (5) years’ imprisonment and a $250,000 fine; the maximum statutory sentence for each of the money laundering counts (Counts 16 – 18) is 20 years’ imprisonment and a $500,000 fine.
Mr. Acosta commended the investigative efforts of the Federal Bureau of Investigation and the Ocean Ridge Police Department. The case is being prosecuted by Assistant United States Attorney Carolyn Bell.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls . Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on .
