Arthur Fayne, Wire Fraud, Ohio 2023

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Table of Contents

Cleveland Real Estate Developer Indicted for Embezzlement

Aurora, Ohio resident Arthur Fayne, a 58-year-old real estate developer, has been indicted on nine counts of wire fraud in connection with the embezzlement of over $1 million from project funds. The indictment, returned by a federal grand jury in Toledo, alleges that Fayne orchestrated and executed two schemes to defraud separate businesses and embezzled the funds for personal use.

According to the indictment, Fayne was the owner of Business Development Concepts (BDC), an organization that provided training and business consultation services to start-ups and existing companies. BDC also managed construction projects and the purchase of equipment, supplies, and inventory. Fayne served as Vice President and a board member on a for-profit subsidiary of a nonprofit corporation that operated as a federally qualified health center network.

Fayne was accused of diverting $759,105.92 of the $2,629,740.38 paid to BDC to his personal use, including gambling at a casino. He allegedly caused falsified invoices to be created and submitted to the nonprofit corporation and its subsidiary for money owed to the construction company. It is also alleged that Fayne accessed some funds from BDC at a casino and lost approximately $1 million on separate occasions.

The indictment also alleges that Fayne devised a second scheme to defraud a subcontractor on the redevelopment project. On June 28, 2018, Fayne caused the subcontractor to make a $125,923.86 wire transfer to a bank account owned by his wife. These funds were allegedly used for personal use, including gambling at a casino.

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

If convicted, Fayne’s sentence will be determined by the Court after review of factors unique to this case, including his prior criminal record, his role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.

The case was investigated by the Cleveland Division of the FBI. The U.S. Attorney’s Office for the Northern District of Ohio would like to acknowledge and thank the Cuyahoga County Prosecutor’s Office for its cooperation with this matter.

Mandatory Facts: Defendant: Arthur Fayne, Exact Criminal Charges: Wire Fraud, City and State: Aurora, Ohio, Exact Date: Not specified, Sentence or Outcome: Currently indicted, Dollar Amounts: Over $1 million.