On August 7, 2015, Fryar and his mother, Allene McGhee, were found guilty of conspiring to defraud six banks and a mortgage company by a New Jersey Superior Court jury. The prosecution maintained that Fryar and McGhee conspired with real estate consultant William Barksdale in a scheme to fraudulently obtain six home-equity loans totaling about $850,000 in November and December 2009, and a $414,000 mortgage in October 2009, using McGhee's home as collateral in each instance. Fryar and McGhee maintain they were victims of Barksdale, who is serving a 20-month sentence in federal prison for conspiracy to commit wire fraud for his role in the scheme, and plan to appeal.
On October 2, 2015 Pro Football Talk reported that Fryar and his mother were convicted of mortgage fraud. Fryar will receive a five-year prison sentence while his mother will receive probation. According to the New Jersey AG who oversaw the case, John Hoffman, "The fact that Fryar had the means to succeed and do good things and instead chose this criminal path makes his actions all the more reprehensible".
On December 7, 2015 a NJ Judge handed up an order that Irving Fryar and his mother to pay $615,600 in restitution to five lending institutions that were cheated in a mortgage scam. Fryar and his mother, Allene McGhee, were convicted of applying for multiple mortgage loans in quick succession while using the same property as collateral. Fryar was sentenced in October to five years in prison while his mother received three years of probation. In June 2016 Fryar was released from prison after serving 8 months of his sentence. He was placed under the state's Supervision Program for non-violent offenders.