Fairfield Man Sentenced to Prison for Role in $9 Million Investment Scam
|U.S. Attorney’s Office August 26, 2010|
CINCINNATI—Kevin Miller, 55, of Fairfield, was sentenced in United States District Court today to 15 months’ imprisonment for his role in a real estate investment fraud scheme between 2005 and 2008 that defrauded more than 90 victims out of more than $9 million.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Dugan T. Wong, Assistant Inspector in Charge, U.S. Postal Inspection Service; Keith Bennett, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division (FBI); and Butler County Prosecutor Robin Piper, announced the sentence handed down today by Senior United States District Judge Herman Weber.
In addition to the prison time, Miller’s sentence includes two years of supervised release and an order to pay restitution of $184,354.36 to the three victims directly affected by his actions. Miller is also prohibited from engaging in any further investment solicitation activity.
Miller pled guilty on January 21, 2010 to one count of conspiracy to commit mail fraud and one count of obstruction of an investigation. According to court documents, 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 or a co-conspirator 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.
One of Miller’s co-conspirators, James D. Powell, 53, of Hamilton, pled guilty on June 28, 2010, to conspiracy and wire fraud and is awaiting sentencing.
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 Senior Litigation Counsel Anne Porter, who prosecuted the case.