Real Estate Developer Sent to Prison for Stealing Investor Funds

Allison Tussey —  October 10, 2014 — Leave a comment

Steven Russell Hart, 55, Madill, Oklahoma, was sentenced to serve 33 months in prison for defrauding an investor of more than $700,000 to pay for construction that never took place, including five houses that did not exist.

During 2009, 2010, and 2011, Hart operated SRC Construction, Inc., which built homes in an Ardmore subdivision called “The Meadows.” He funded the construction through Texoma Land Development LLC, an Oklahoma City entity.

On October 15, 2013, a federal grand jury indicted Hart for sending false draw requests to Texoma Land Development. The requests specified specific construction work that SRC had supposedly performed or was in the process of performing. According to the indictment, Hart caused SRC to receive hundreds of thousands of dollars to pay for construction that never took place, including five houses that did not exist. The indictment alleged that he used a portion of these fraudulent proceeds for personal expenses.

Hart pled guilty on April 1, 2014. Judge Timothy D. DeGiusti sentenced Hart to serve 33 months in prison, ordered him to pay $728,906.75 in restitution, and entered a forfeiture money judgment in the same amount. After release from prison, Hart will be on supervised release for two years.

Sanford C. Coats, United States Attorney for the Western District of Oklahoma, announced the sentence.

This sentence is the result of an investigation by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Scott E. Williams.

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Allison Tussey

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