2 Real Estate Developers Sentenced for Investment Fraud

Allison Tussey —  May 9, 2012 — Leave a comment

Allen Weiss, 60, Marlbor, New Jersey, and David Moulakis, 55, Toms River, New Jersey, two real estate developers, were sentenced for their roles in an investment fraud conspiracy that embezzled nearly $1 million in connection with purported commercial real estate developments.

Weiss was sentenced by U.S. District Judge Anne E. Thompson in Trenton federal court to 27 months in prison; co-conspirator Moulakis was sentenced to 12 months in prison,

Both men previously pleaded guilty before Judge Thompson to informations charging them with conspiracy to commit wire fraud.

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

From January 2009 to February 2010, Weiss and Moulakis conspired with each other and others in a scheme to embezzle investment funds they raised in connection with purported commercial real estate developments, including professional service locations for physicians in Holdmel, Hazlet, and Neptune, New Jersey. As part of their fraudulent scheme, Weiss, Moulakis, and others solicited new investors through promises of high returns and fictitious guarantees on investments and assured existing investors that their investments were secure through fraudulent account and mortgage documentation.

Weiss, Moulakis, and their co-conspirators embezzled nearly $1 million in investment funds, using the money to fund their personal expenses. None of the real estate sites associated with the purported project were ever developed.

In addition to the prison terms, Judge Thompson sentenced Weiss to five years’ supervised release and Moulakis to three years’ supervised release; the two men were also ordered to pay total restitution of $1,348,808.

, U.S. Attorney Paul J. Fishman announced the sentences.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward, for the investigation leading to today’s sentences.

The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

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.

Be Sociable, Share!

Allison Tussey

Posts Google+

No Comments

Be the first to start the conversation.

Leave a Reply

Text formatting is available via select HTML.

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong> 

*