Kevin Miller, 55, Fairfield, Ohio, pleaded guilty to one count of conspiracy to commit mail fraud and one count of obstruction of an investigation for his role in a real estate investment fraud scheme between 2005 and 2008 that defrauded approximately 80 victims out of approximately $7.3 million.
According to a statement of facts filed with the plea agreement, Miller was a salesperson for Capital Investments. Capital Investments, Greater Miami Debentures and Great Miami Real Estate were three entities that duped victims into investing with them, claiming the investments were secure and backed by equity in real estate properties in Butler County, Ohio and in Florida. Many of the properties were not purchased or developed with investor monies and were owned by one of the conspirators, or the spouse or parent of a conspirator, and by November 2007 many of the properties lacked substantial equity, were in a state of disrepair, were in default, or were in some stage of foreclosure.
Miller sent a letter dated January 8, 2008, to one couple he had persuaded to invest with Capital Investments, representing that the investment was a “success” and continuing to be “an active player in the investment industry” providing “yields that are higher than those found elsewhere in the marketplace” when, in fact, by or before November 2007 all investors’ money was gone, with many of the properties which purported to back the victims’ investments in or approaching foreclosure.
In June, 2008, Miller tried to conceal his role in the investment scheme by falsely completing a questionnaire sent to victims by the Ohio Department of Commerce Division of Securities which was investigating the sale of the unregistered securities.
Conspiracy to commit mail fraud and obstruction of an investigation are each punishable by up to 20′ years imprisonment.
The announcement was made by Carter M. Stewart, United States Attorney for the Southern District of Ohio, Gerald A. O’Farrell, Assistant Inspector in Charge, U.S. Postal Inspection Service, and Keith Bennett, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division (FBI).
Stewart commended the cooperative investigation by Postal Inspectors, FBI agents, and investigators with the Ohio Department of Commerce Division of Securities who investigated the case, and Assistant U.S. Attorney Anne Porter, who is prosecuting the case.