Former Investor Charged in Real Estate Fraud Scheme

admin —  December 4, 2009 — Leave a comment

Roman R. Fitzmartin, 36, Doylestown, Pennsylvania, the former operator of the Doylestown Investment Group, was charged with mail fraud.  The information alleges that Fitzmartin diverted the proceeds of real estate sales that were supposed to be paid to investors and, instead, used them for his own personal and business expenses. Additionally, the information alleges that Fitzmartin sold interests in real estate that he did not own. As a result of his fraudulent scheme, Fitzmartin’s victims lost a total of $872,719.26.

Specifically, the information alleges that Fitzmartin sold what he claimed was a 56 percent equity interest in a commercial property at 76 E. Main Street, Doylestown, Pennsylvania, even though Fitzmartin did not own such interests. He obtained more than $355,000 from this fraud. Also, when he sold the property, Fitzmartin diverted to his own accounts nearly $50,000 in proceeds that were supposed to be paid to investors. Likewise, Fitzmartin purported to sell interests in land in Douglasville, Pennsylvania, for $300,000 even though Fitzmartin did not own any such land. Finally, Fitzmartin sold a property he owned at 6 E. Court Street, Doylestown, Pennsylvania, and converted to his own use $168,763.98 in proceeds that was supposed to go to investors.

If convicted, Fitzmartin faces a maximum sentence of up to 40 years’ imprisonment, three years’ supervised release, $1.7 million in restitution and forfeiture, and a $500,000 fine.

The case was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Richard J. Zack

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