John Michael Sheehan, 50, and Alesia Claremae Sheehan, 49, Springfield, Missouri, were indicted by a federal grand jury for their roles in a $1 million real estate investment scheme. The Sheehans were charged in a 22-count indictment returned by a federal grand jury in Springfield. Missouri.
The indictment alleges that, from June 1, 2005, through June 30, 2006, the Sheehans participated in a conspiracy to commit wire fraud and mail fraud. The Sheehans allegedly used their businesses, Jmichael Investment, LLC, (JMI) and 3MOM, Inc., to defraud 21 investors who paid $1,023,670 to purchase and rehabilitate 33 separate properties.
According to the indictment, the Sheehans used a Web site to solicit investments to purchase and rehabilitate single family residential homes, which would then be sold and the proceeds split between the investors and the Sheehans. The Web site promoted John Sheehan as “the King of Bling” and promised investors a 10 to 18 percent return within a year on a minimum investment of $15,000. Investors also attended investment seminars hosted by the Sheehans.
Although investors were told that they would be the sole investor on each property, the indictment says, the Sheehans collected investments from multiple investors for the same property. The Sheehans did not use all of these investments to purchase or rehabilitate the properties.
For example, the indictment alleges that eight investors provided a total of $120,000 for the purchase and rehabilitation of a property at 2054 N. Park, Springfield, Missouri. The Sheehans did not purchase the property, the indictment says, and later returned $18,500 to one of the investors; the Sheehans did not return the $15,000 to seven of the investors. The indictment also alleges that five investors provided a total of $83,375 for the purchase and rehabilitation of a property at 2006 N. Travis, Springfield, Missouri. The Sheehans purchased the property for $19,900 and it was later sold $69,900, the indictment says, but did not return any money to the five investors.
In addition to the wire and mail fraud conspiracy, the indictment charges the Sheehans with two counts of mail fraud, 10 counts of wire fraud, one count of conspiracy to commit money laundering relating to engaging in monetary transactions in criminally-derived property and eight counts of money laundering.
The announcement was made by Beth Phillips, United States Attorney for the Western District of Missouri. Phillips cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the U.S. Postal Inspection Service, IRS-Criminal Investigation and the Missouri Secretary of State.