Brooklynite Charged With $1.5 Million Hotel-Investment Fraud

Home Live Wire Brooklynite Charged With $1.5 Million Hotel-Investment Fraud

A Brooklyn man was charged with three counts of fraud linked to a $1.5 million investment he received to buy hotels. Robert E. McDonald allegedly convinced an unnamed individual who had already invested in and operated hotels to give $1.5 million to RAI Inc to help purchase a $108 million portfolio of hotels in Midwest college towns, reports NASDAQ.com. The Justice Department claims the money went toward personal expenses, including restitution for a previous fraud conviction.

McDonald emailed the investor a fake bank statement detailing RAI’s assets of $88 million and a phony letter from the bank, according to the department. He was charged with one count of securities fraud, one count of wire fraud and one count of mail fraud. If convicted on all counts he could receive up to 60 years.

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