Last Thursday, a 52-year-old Colleyville man was sentenced to 10 years in prison for involvement in a fraud scheme connected his real estate investment company, Metro Buy Homes. The man pleaded guilty in February.
While he initially faced up to 20 years in prison, the federal judge in charge of his cut that time in half. In addition to spending 10 years in federal prison, the man will also have to pay $6.2 million in restitution to investors involved in the fraud scheme.
According to prosecutors, the Colleyville man had told investors between January 2008 and August 2010 that he would use their money to purchase real estate. To convince investors, he showed false property deeds and presented the contributions of other investors as "profits."
Authorities found out about the scheme in 2010, when multiple investors from four different states filed lawsuits against the man seeking the recovery of thousands of dollars. The suits indicated that the man had told investors he would use their money to purchase foreclosed and distressed properties. But some of the properties he said would be used to secure investments were not his, and some of the deeds of trust and real estate lien notes sent to investors were fraudulent.
Sources said the man was involved in a fraud scheme back in the 90s, after which he pleaded guilty to falsifying loan records and using loan proceeds for business and personal use. Prosecutors also said the man attempted to deceive investors by setting up a website displaying figures meant to show the investments were profitable.
Source: Star Telegram, "Colleyville man sentenced to more than 10 years in prison," Sep 30, 2011.
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