David Saks: February 2013

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

MUTLI MILLION DOLLAR REAL ESTATE PONZI SWINDLER GUILTY

Multi-Million-Dollar Real Estate Ponzi Schemer Admits Securities Fraud and Money Laundering

U.S. Attorney’s Office February 04, 2013
  • District of New Jersey (973) 645-2888
 

NEWARK—A Somerset County, New Jersey man pleaded guilty today to one count of securities fraud and one count of money laundering, admitting that he defrauded victims of an investment scheme by misusing their capital contributions and misrepresenting the performance of their investments, U.S. Attorney Paul J. Fishman announced.

David Connolly, 51, of Watchung, New Jersey, pleaded guilty to counts one and 10 of a superseding indictment before U.S. District Judge William J. Martini in Newark federal court.

Connolly was originally charged by Indictment on May 16, 2012. On January 23, 2013, the grand jury returned a 15-count superseding indictment charging Connolly with one count of securities fraud, six counts of mail fraud, two counts of wire fraud, and six counts of money laundering.

According to documents filed in this case and statements made in court:

From at least 2006 through October 2009, Connolly orchestrated a real estate investment fraud scheme in which he took in more than $50 million from more than 200 victims, causing losses of at least $9 million.

To induce victims to invest, Connolly made various types of materially false and misleading statements and omissions. He told victims their money would be used to purchase a specific property, and the property would generate rental income that would be used to pay investors monthly distributions. Connolly also told victims their money would be held in escrow until the closing of a purported real estate transaction, and each property would be financially independent from all the others. Connolly misrepresented the amount of equity victims had in the properties, the condition of the properties, and the financial performance of the properties. Although the investment properties experienced significant negative cash flow, Connolly told investors they were performing well.

Connolly took significant portions of his victims’ money, which had been provided for specific real estate transactions, and used it for other purposes, without disclosing the diversions of funds to victims. These included funding unrelated real estate transactions in which Connolly was engaged; paying prior victims; and paying himself.

The scheme collapsed in the summer of 2009, after Connolly began to default on the mortgage payments for the investment properties.

Connolly faces a maximum potential penalty of 20 years in prison and a $5 million fine on the securities fraud count and a maximum potential penalty of 10 years in prison and a $250,000 fine on the money laundering charges. He also agreed to forfeit $9.92 million as part of the plea agreement. Sentencing is scheduled for June 4, 2013.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, for the investigation leading to today’s indictment. He also thanked special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, for their important contributions to the investigation.

The government is represented by Assistant U.S. Attorney Charlton A. Rugg of the OCDETF Unit and Senior Litigation Counsel Leslie F. Schwartz of the Economic Crimes Unit.

If you believe you are a victim of or otherwise have information concerning this alleged scheme, you are encouraged to contact the FBI at 973-792-3000.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and, with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

source: FBI



David Saks



Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

 

Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.

 

 

 

 

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


 

  Real Estate Crimes

 

Click "HERE" For Today's Question

 

 

TheListen Now!

David Saks Show

Saturday Nite

9pm-12am Central

University of Memphis

WUMR

 

Support
America's Hobby

Click Elvis

Mr.Saks' participation in ActiveRain ended April 13, 2015.

His blog archives will remain online.

May God bless you.

Comment balloon 0 commentsDavid Saks • February 05 2013 10:09AM
MUTLI MILLION DOLLAR REAL ESTATE PONZI SWINDLER GUILTY
share
Multi-Million-Dollar Real Estate Ponzi Schemer Admits Securities Fraud and Money Laundering U. S. Attorney’s Office February 04, 2013 District of New Jersey (973) 645-2888 &… more
MAN SENTENCED FOR SHREDDING DOCUMENTS IN MORTGAGE FRAUD INVESTIGATION
share
Littleton Man Sentenced for Shredding Documents in an Attempt to Obstruct Mortgage Fraud Investigation U. S. Attorney’s Office February 04, 2013 District of Colorado (303) 454-0100.. more
HUD Press Release : Federal Agencies Working to Make Homes Healthier
share
HUD No. 13-011 FOR RELEASE Shantae Goodloe February 4, 2013… more
REALTOR SENTENCED TO 30 MONTHS IN PRISON FOR FRAUD
share
Realtor Sentenced to 30 Months for Mortgage Fraud U. S. Attorney’s Office February 01, 2013 Western District of Oklahoma (405) 553-8700 &… more
Real Estate Practice : Lesson 2040
share
#2040 A buyer paid $460, 000 for the house. The lot was valued at $65, 000. The mortgage was for $200, 000. After all is said and done, how much equity does the… more
Real Estate Practice : Lesson 2039
share
#2039 Homeowner's purchase homeowner's insurance because they know that homeowner's insurance will replace old furniture and roofs when these things need replacing. True or false &… more
Real Estate Practice : Lesson 2038
share
#2038 A homeowner's house was constructed in such a way so that the floor of the house was built nearly two feet above a one hundred year old flood mark. The homeowner wants to apply for… more
Real Estate Practice : Lesson 2037
share
#2037 A mortgage broker told a homeowner that he could deduct the appraisal fee from his annual gross income for income tax purposes. Is this true or false … more
Real Estate Practice : Lesson 2036
share
#2036 A homeowner insurance policy contained a provision for coinsurance along with coverage that insured the home for total replacement cost. The home burned down and the… more
Real Estate Practice : Lesson 2035
share
#2035 A developer built a highrise building in the greater Memphis metropolitan area. This highrise includes residential units, office space and retail stores and is considered to… more