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A former partner in a New Jersey insurance brokerage firm has admitted stealing more than $20 million in a fraudulent loan scheme.

Forty-eight-year-old Gavin Gatta of Wayside pleaded guilty in U.S. District Court in Newark to a wire fraud charge. He was was a partner in the Monmouth County firm Smith Gatta Gelok, which assisted businesses in obtaining commercial insurance.

Prosecutors say Gatta submitted fake applications for premium financing on behalf of customers who didn’t need it. He pocketed the proceeds and used the money for personal expenses, including several luxury automobiles.

Sentencing is set for Jan. 24. Gatta faces up to 20 years in prison, although the actual penalty will likely be lighter under federal guidelines.

Topics Agencies New Jersey