St. George Man Sentenced To 108 Months After Convictions For Fraud, Money Laundering

[nitpicker]

https://www.justice.gov/usao-ut/pr/st-george-man-sentenced-108-months-federal-prison-after-convictions-fraud-money

Department of Justice
U.S. Attorney’s Office
District of Utah

FOR IMMEDIATE RELEASE
Friday, October 7, 2016

St. George Man Sentenced To 108 Months In Federal Prison After Convictions For Fraud, Money Laundering

Ordered to Pay $12,227,920 in Restitution to Victims

SALT LAKE CITY – Edmund Edward Wilson, age 72, of St. George, Utah, who pleaded guilty to wire fraud and money laundering in connection with a real estate fraud scheme, will serve 108 months in federal prison followed by 36 months of supervised release. U.S. District Judge Dee Benson imposed the sentence Thursday afternoon in federal court. Wilson also must pay $12,227,920 in restitution to victims of the fraud scheme.

According to a sentencing memorandum filed by federal prosecutors, Wilson ran a real estate investment scheme from approximately 2005 until 2012. His fraud accelerated in 2009 when businesses were in desperate need for financing, and the economic collapse made such loans more difficult to obtain through traditional means. Wilson sought out individuals all over the country who were developing real estate projects, such as shopping malls or resorts.

Wilson represented to investors that his company could provide financing for real estate development projects for an advance fee of either $80,000 or $150,000 through a “substitution of collateral program.” Through this program, individuals would provide the fee, obtain financing for their projects within 30-60 days (in some cases hundreds of millions of dollars), and not have to repay the loan. In return, these individuals Wilson called “investors” would give Mr. Wilson a 30 percent stake in the development project.

When investors called Wilson to ask why they had not received funding for their projects within the time promised, Wilson falsely represented to investors that he needed additional money to cover various unforeseen fees and expenses, and that once these costs were paid, funds would be released for the development projects. Wilson failed to disclose to investors that he never provided any funding for any development project through his substitution of collateral program and that he used a significant portion of the advanced fees for his personal benefit.
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