Lender and Escrow Owner Sentenced to 84 months

Rachel Dollar —  November 11, 2015 — Leave a comment

George Kalivretenos, 59, Miami Beach, Florida, was sentenced to 84 months in prison for a wire fraud and money laundering scheme in which he defrauded borrowers of approximately $5.6 million. Kalivretenos was also ordered to pay $4.18 million in restitution as part of his sentence.

Kalivrentenos pleaded guilty on August 13, 2015. According to court documents, Kalivretenos operated and controlled Jasmine Capital and Jasmine Resources Capital Group, which were lending entities. He also owned and controlled two escrow companies, Escrow Services, LLC, and Escrow Title Services, LLC. Kalivretenos promised to lend companies and individuals millions of dollars after they sent a deposit of 10 percent of the loan amount to a third party escrow company. However, Kalivretenos concealed his control over the escrow company from borrowers. Once the escrow company received the borrowers’ deposits, Kalivretenos spent borrowers’ funds on personal expenses, including two Rolls Royces, a penthouse condominium rented at $18,000 per month, and hotel stays at the Ritz Carlton and Crowne Plaza. He also transferred substantial funds to overseas accounts.

In order to cover-up the fraud scheme, Kalivretenos made false representations regarding the status, use of, and reasons for not disbursing escrowed funds to borrowers and law enforcement. For example, on August 20, 2013, Kalivretenos, pretending to be a woman employed at an escrow company, placed a telephone call to a FBI special agent and falsely claimed the escrow company still held a borrower’s escrow deposit. In order to corroborate his lie about the status of the escrow funds, Kalivretenos manufactured a fake bank statement and sent it to the FBI.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Uzo Asonye prosecuted the case.

 

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Rachel Dollar

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