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

CourtNew Jersey Superior Court Appellate Division
DecidedJune 27, 2018
DocketA-3700-15T4
StatusUnpublished

This text of 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)) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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

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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court."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

2 A-3700-15T4 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

3 A-3700-15T4 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.

4 A-3700-15T4 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.

5 A-3700-15T4 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

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STATE OF NEW JERSEY VS. IRVING FRYAR (13-10-0197, BURLINGTON COUNTY AND STATEWIDE), Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-of-new-jersey-vs-irving-fryar-13-10-0197-burlington-county-and-njsuperctappdiv-2018.