Owensboro Man Charged with Defrauding Elderly Couple of More Than $200,000 in Retirement Savings
Money was Allegedly Spent on Personal Expenses Including Hummer Vehicle and Motorcycle
|U.S. Attorney’s Office June 17, 2013|
OWENSBORO, KY—David J. Hale, United States Attorney for the Western District of Kentucky, today announced the indictment and arrest of an Owensboro, Kentucky man charged with six counts of mail fraud in connection with defrauding over $200,000 from an elderly Daviess County, Kentucky couple.
Robert K. Gray was charged by a federal grand jury meeting in Bowling Green, Kentucky, on June 12, 2013, and the seal was lifted today, following Gray’s arrest in Owensboro, by the Federal Bureau of Investigation. Gray had an initial appearance on the charges today in United States District Court in Bowling Green, Kentucky, before Magistrate Judge H. Brent Brennenstuhl, and counsel was appointed to represent him. He is scheduled to be arraigned in United States District Court in Owensboro on June 27, 2013, at 10:00 a.m. CST.
According to the indictment, Gray defrauded the couple by making material misrepresentations about an investment opportunity in the defendant’s construction company, after making home improvements to the couple’s residence in excess of $300,000, an amount that is more than double the assessed value of the property.
Specifically, between January 13, 2010, through August 5, 2010, C.R. paid $338,000 to the defendant Robert Gray and to his brother (not a defendant in the indictment) for renovations to his home which, in 2013, according to the property valuation records kept by the City of Owensboro, was valued at $148,000.
Further, between July 10, 2010 and December 17, 2010, Gray is charged with devising a scheme to defraud C.R. and U.R. of their GE retirement fund in the total amount of $220,000. Specifically, Gray asked C.R. to invest in his start-up company, Unlimited Constructors, to fund projects Gray said the company had in Madisonville, Kentucky, and on Highway 54 in Owensboro. Gray promised C.R. a substantial return on his investment, when in truth and in fact, Gray knew Unlimited Constructors did not have construction projects for a shopping center in Madisonville, Kentucky, or for any commercial development on Highway 54 in Owensboro.
It was further part of the scheme to defraud that an Unlimited Constructors bank account was opened by defendant Gray at U.S. Bank on September 27, 2010. According to the indictment, none of the funds obtained from C.R. were used in construction projects in Madisonville or Owensboro. According to bank records, the account was solely funded by checks drawn on a retirement fund, made payable to C.R. and U.R. Gray allegedly used the funds to pay for personal expenses and to purchase vehicles including a 2006 Hummer for $25,000 the day after the account was opened, and, approximately two weeks later, to purchase a 2006 Kawasaki motorcycle for $5,000. If convicted at trial, Gray faces 120 years in prison, a $1,5000,000 fine, and a three-year period of supervised release.
This case is being prosecuted by Assistant United States Attorney Marisa Ford and is being investigated by the Federal Bureau of Investigation (FBI).