STATE OF NEW JERSEY VS. IRVING FRYAR (13-10-0197, BURLINGTON COUNTY AND STATEWIDE)

New Jersey Superior Court Appellate Division·Decided June 27, 2018·No. A-3700-15T4·Unpublished

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court."

Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-3700-15T4

STATE OF NEW JERSEY, Plaintiff-Respondent, v.

IRVING FRYAR, a/k/a IRVING D. FRYAR, SMURF FRYAR,

Defendant-Appellant.

Argued May 22, 2018 – Decided June 27, 2018 Before Judges Yannotti, Mawla and DeAlmeida.

On appeal from Superior Court of New Jersey, Law Division, Burlington County, Indictment No. 13-10-0197.

Lauren S. Michaels, Assistant Deputy Public Defender, argued the cause for appellant (Joseph E. Krakora, Public Defender, attorney;

Lauren S. Michaels, of counsel and on the briefs).

Sarah Lichter, Deputy Attorney General, argued the cause for respondent (Gurbir S. Grewal, Attorney General, attorney; Sarah Lichter, of counsel and on the brief).

PER CURIAM

Defendant Irving Fryar and his mother Allene McGhee were charged with second-degree conspiracy to commit theft by deception, N.J.S.A. 2C:5-2, N.J.S.A. 2C:20-4(a); and second-degree theft by deception, N.J.S.A. 2C:20-4(a). Defendant and McGhee were tried before a jury and found guilty on both counts. After denying defendant's motion for a new trial, the trial judge sentenced him to a five-year term of imprisonment and ordered him to pay restitution of $616,617.27. Defendant appeals from the judgment of conviction dated December 9, 2015. We affirm.

I.

We briefly summarize the testimony presented at trial.

William Barksdale was the owner of several businesses, including Barksdale Business Group (BBG), Barksdale Loan Consultants (BLC), and Barksdale Investment Properties (BIP). Barksdale explained that BBG processed mortgage loans, and BLC was a mortgage company. BIP owned rental properties and also purchased, rehabilitated and sold properties.

While he was visiting Florida, Barksdale learned about mortgage schemes involving multiple home equity lines of credit (HELOCs). Barksdale explained how such schemes work:

If you have a property, let's say it's worth $300,000, and you have a first mortgage of [$]100,000, you have approximately $200,000 difference between the price of the house, [the] current value and [the] first mortgage.

And you can borrow up to [eighty] percent of the actual equity of the house. If you have $200,000 equity, at [eighty] percent you can take loans out for $160,000. But with the multiple lines of credit, it takes usually [sixty] to [ninety] days for the liens to be recorded at the courthouse. If you apply for more than one loan at the same time, it won't hit the courthouse and be recorded so you can retain multiple lines of credits [and] instead of having one loan for 160,000, you can get five loans for like 800,000. It [gives] [you]

more buying power[] to buy or flip properties or use at your discretion.

Barksdale stated that the same property is used as security for all of the loans. He said a person carrying out this scheme has to close on the transactions "in a short amount of time before one bank finds out about another bank" because, otherwise, the banks will not approve the loans.

Barksdale further testified that he first met defendant at a closing when Barksdale purchased a home in Burlington from defendant's corporation. McGhee had been living in the home and she needed a place to reside. At the time, Barksdale was in the process of rehabilitating a home on Glenview Lane in Willingboro. Barksdale sold the Glenview Lane property to McGhee, and BBG retained a lien on the property in the amount of $144,000.

In 2009, Barksdale and defendant began operating a fitness camp in Willingboro and Burlington. Barksdale ran the camp, and defendant would visit several times each week to work out and meet

persons at the camp. At some point, defendant approached Barksdale and asked him if he could get him about $500,000. They had a conversation about participating together in a HELOC scheme.

Barksdale explained to defendant how a HELOC scheme works.

He said multiple lines of credit had to be acquired within a short time, so that the banks would not be aware that there were other loans secured by the same property. Barksdale also said "the money had to be paid back quickly."

Barksdale and defendant spoke about defendant's primary residence, which was in Springfield. Defendant told Barksdale a loan payment had not been processed, and the home had gone into foreclosure. Barksdale helped defendant in having McGhee purchase the Springfield property, and he assisted McGhee in applying for the loan to make the purchase. Barksdale said defendant needed money to pay back several investors and make the down payment on the Springfield home. Defendant told Barksdale he was interested in pursuing the HELOC scheme.

Barksdale and defendant discussed the property that would be used in the HELOC scheme, and they decided to use McGhee's property on Glenview Lane in Willingboro. Barksdale testified that McGhee "had good credit and could qualify for the loans." McGhee's involvement was important because she owned the home, had good credit, and needed to sign the documents.

Barksdale selected the six banks for the HELOC scheme and he discussed his selections with defendant. Barksdale chose banks that made loans to him in the past. Barksdale and defendant explained the HELOC scheme to McGhee. They told McGhee to use defendant's phone number on her loan applications, should any questions arise. Barksdale also overheard a phone conversation during which defendant told McGhee "to do what was needed to get the loans completed."

With the HELOC applications, McGhee submitted a W-2 form from 2008 and pay stubs from 2009, which identified New Jerusalem House of God (NJHOG) as her employer. At the time, defendant was a pastor at NJHOG. McGhee's W-2 stated that she had income of $87,532.16 in 2008. However, an accountant whose firm had provided services to NJHOG testified that NJHOG did not have employees in 2008.

Between November 2009 and January 2010, McGhee applied for and was granted HELOC loans at six different banks, using the Glenview Lane property as collateral for all of the loans. The Bank, Cornerstone Bank, Sun Bank, Susquehanna Bank, Beneficial Bank, and Roma Bank issued HELOC loans to McGhee. Barksdale did not sign any of the loan documents, but he drove McGhee to three of the closings, and went into the banks with her for two of the closings. All six loans closed, and McGhee obtained a total amount of $616,617.27.

All six banks issued payoff checks in the amount of about $130,000 to BBG to satisfy the existing mortgage on the Glenview Lane property. Barksdale deposited these checks, which totaled about $800,000, in BBG's account. He explained that defendant had the discretion to control the use of all the funds in the account except for the amount needed to pay off the existing mortgage on the Glenview Lane property.

Barksdale said that before the HELOCs closed, he issued at defendant's direction, six $20,000 checks to Jerry Hostetter, who was one of defendant's business partners. Defendant told Barksdale that after the HELOCs closed, he should take the $120,000 Barksdale advanced to Hostetter from the monies obtained in the HELOC scheme.

Defendant also directed Barksdale to use $106,000 from the HELOCs to pay Duane Ortega, who had advanced funds to defendant for the down payment for the purchase of the property in Springfield. Barksdale also disbursed monies from the HELOCS directly to defendant. Other monies from the HELOCS were deposited in joint bank accounts held by McGhee and defendant, and defendant withdrew funds from those accounts.

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STATE OF NEW JERSEY VS. IRVING FRYAR (13-10-0197, BURLINGTON COUNTY AND STATEWIDE), (N.J. Ct. App. 2018).

STATE OF NEW JERSEY VS. IRVING FRYAR (13-10-0197, BURLINGTON COUNTY AND STATEWIDE) (STATE OF NEW JERSEY VS. IRVING FRYAR (13-10-0197, BURLINGTON COUNTY AND STATEWIDE)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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