Wayne Woman Pleads Guilty In $4M Bank Fraud Scheme: U.S. Attorney

NEWARK, NJ — A fourth employee of a business consulting firm has entered a guilty plea after creating false bank loan documents, costing "victim" banks over $4 million, the U.S. Attorney's Office said.

Gladys Collins, 43, of Wayne, pled guilty to a conspiracy to commit bank fraud charge via videoconference to U.S. District Judge Kevin McNulty.

Authorities say Cash Flow Partners LLC, which held offices in New York and New Jersey, used false documentation to secure bank loans between March 2016 and September 2019.

The company released internet advertisements and held seminars offering to assist customers in obtaining bank loans, including loans insured by the Federal Deposit Insurance Corporation (FDIC).

When customers submitted documents in support of their bank loan application, Cash Flow Partners would create fraudulent documents to make those loan applications look more financially viable than they were in reality.

Collins is the fourth employee to plead guilty, along with Jennie Frias, Raymundo Torres and CEO Edward Espinal. They are awaiting sentencing.

Collins is charged with conspiracy to commit bank fraud, which carries a maximum penalty of 30 years in prison and a $1 million fine. Her sentencing is scheduled for March 8, 2021.