The Frederick News-Post is reporting that Mark Gaver the first City-appointed chairman of the Hotel Advisory Committee (HAC) has been arrested and charged with $50 million of bank fraud. Gaver is accused of misrepresenting the value of his contracts with federal agencies in Frederick and in Washington DC to defraud banks going back to November 2008.
Gaver began the practice of conducting meetings of the HAC behind closed doors apparently in violation of the state Open Meetings Act — the subject of a current review by the State Attorney-General’s Open Meetings Compliance Board following a complaint by myself. The City Attorney has been working to offload blame for the misdeeds of the HAC on the Chamber of Commerce of Frederick County, claiming that Gaver was appointed by the local business group — even though Mayor McClement said at the time that he appointed Gaver.
Prosecutors say Gaver submitted false financial records to Santander Bank
on eight occasions to get around $50m in bank loans. He misused some of the proceeds, the feds say, to buy luxury cars (a 2011 Mercedes Roadster, and a Maserati Gran Turismo,) a $2.3m home in Bonita Springs FL and rental of private jets for trips to Caribbean islands.
The ten charges, eight on bank fraud and two on money laundering, say Gaver exaggerated or fabricated contracts his Frederick-based company GTI Federal had with the EPA, the Air Force and the Bureau of Alcohol Tobacco and Firearms. GTI Federal’s website says they do “enterprise management solutions” — http://www.gtifederal.com/en_us — and it highlights clients such as Ft Detrick, NASA, National Fire Association, US Navy, US Marine Corps. They list offices at 50 Carroll Creek Way.
Gaver who has said his family goes back ten generations in Frederick County founded the company in Frederick in 1998. He is no longer listed as part of the management team. By one account he transferred his interest in the company to his wife. Prior to the federal charges Gaver was involved defending himself against civil claims made by banks against him.
An accounting of reported political contributions by Gaver 2005 to 2014 includes:
— David Brinkley $3,000
— Ron Young $2,000
— Chamber of Commerce Business PAC $2,000
— Charlie Smith $1,550
— Scott Rolle $1,200
— Patrick Hogan $1,100
— Martin O.Malley $1,000
— Bob Ehrlich $1,000