Man Indicted for Role in $4M Escrow Fraud Scheme

Allison Tussey —  March 25, 2015 — Leave a comment

George Kalivretenos, 58, Miami Beach, Florida, who allegedly stole $4 million in borrowers’ funds and lied to federal law enforcement agents, was indicted by a federal grand jury on charges of wire fraud, money laundering, and false statements.

The defendant faces a maximum penalty of 20 years in prison on the wire fraud count, 10 years in prison on each money laundering count, and five years in prison on each false statement count. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

According to allegations in the indictment, Kalivretenos operated and controlled Jasmine Capital and Jasmine Resources Capital Group, which were lending entities, as well as Escrow Services LLC and Escrow Title Services, LLC, which were escrow companies. Kalivretenos used these entities to fraudulently obtain equity deposits and due diligence fees from investors and business associates. 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 deposit, Kalivretenos spent borrowers’ funds on personal expenses, including purchasing a Rolls Royce, a condominium, and transferring 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.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after Kalivretenos’ initial appearance. This case is being investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney Uzo Asonye is prosecuting the case.

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Allison Tussey

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