A Louisville real estate entrepreneur was on Friday to 37 months in federal prison for his involvement in mail fraud connected to real estate schemes that resulted in the loss of more than $1 million to investors, according to reports.
According to a release from U.S. District Court Western Kentucky Division, the sentence on Friday came after Russell N. Daniel, 63, pleaded guilty in September to devising a real estate scheme that resulted in losses of more than $1 million to his investors. Daniel has been ordered to pay $2,797,000 in restitution.
"The three year prison sentence is a well-deserved punishment for this fraudulent real estate scheme," stated U.S. Attorney Hale, according to SurfKy. "My office and the Department of Justice will continue to pursue and prosecute investor fraud."
Daniel admitted that he solicited more than $700,000 to purchase houses purportedly located in Prospect, Shelbyville, Goshen, and Lexington, Kentucky, as well as Jeffersonville, Indiana, when in fact the addresses were fictitious.
He confessed that he then used the money received from investors in these fictitious transactions to fund unrelated matters, including using the investment monies to make payments of promised returns on unrelated investments.
In addition, between Dec. 28, 2006 and Aug. 14, 2008, Daniel presented his investors with fictitious mortgages totaling more than $530,000 and then between March 23, 2005 and May 27, 2009, solicited another $35,000 for investment in a non-valid mortgage, according to the report.
