Texas Man Sentenced For Investment Fraud Scheme

Allison Tussey —  March 25, 2009 — 1 Comment

Alvin W. Byrd, Jr., San Antonio, Texas, was sentenced to 150 months in federal prison this morning for his role in a real estate fraud scheme. In addition to the prison term, United States District Judge Orlando Garcia ordered that Byrd pay a $100,000 fine and restitution of $271,403.33. Judge Garcia also ordered that Byrd be placed under supervised release for a period of three years and perform 100 hours community service at a homeless shelter after completing his prison term.

In December 2007, a jury convicted Byrd of one count of mail fraud, one count of interstate transportation of stolen property and five counts of money laundering. The jury found that Byrd, posing as a successful real estate investor who just moved from the Washington, D.C. area, engaged in a complex get-rich-quick scheme from December 2006 to February 7, 2007. The jury also ordered the forfeiture to the government of a 2006 Hummer, approximately $87,000 seized from the defendant’s bank and investment accounts, plus a $10,000 cashier’s check secured by the defendant.

According to the criminal complaint, in the scheme, Byrd agreed to purchase a house at 25307 Mesa Ranch, San Antonio, Texas, for $395,000. In addition, the agreement called for the seller to loan Byrd $192,000 to cover closing costs. Byrd convinced the seller that his money was tied up but provided the seller with a post dated check in excess of $325,000 to cover the loan plus additional costs. Unbeknownst to the victim, the check was drawn on a closed brokerage account. Byrd converted the victim’s $192,000 check into a cashier’s check, then subsequently into five cashier’s checks. Byrd used the money to pay a Maryland hotel bill in excess of $17,000 where he and his wife lived without paying for almost one year, a hotel bill totaling $4,800 he amassed while he and his wife lived here in San Antonio during a two-month period and for the purchase of a 2006 Hummer for $66,000.

United States Attorney Johnny Sutton made the announcement. This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorneys Ray and Leroy Jahn prosecuted this case for the government.


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Allison Tussey

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One response to Texas Man Sentenced For Investment Fraud Scheme

  1. Why in the world was the closing costs $192,000 for a $395,000. This is impossible? Was the seller a part of the scheme. Maybe the selling price was 3,950,000 and the information contained below is erroneous.

    Also, how was he and his wife able to stay rent free for an entire year at a motel or anyplace without paying?

    This story sounds fake.

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