Patrick Merrill Brody Sentenced to 41 Months for Real Estate Invest…

SALT LAKE CITY – Patrick Merrill Brody, 47, of Salt Lake City, is headed to federal prison after being sentenced Thursday for orchestrating a brazen real estate investment scheme that left victims holding the bag. U.S. District Judge Robert J. Shelby handed down a 41-month sentence, along with an order for Brody to pay $1,331,075.36 in restitution.

Brody pleaded guilty in May to charges of wire fraud and money laundering stemming from an October 2012 nine-count indictment. The indictment detailed how Brody and his wife, Laura Ann Roser, ran Art Intellect, Inc., doing business as Mason Hill, with offices in Salt Lake City and Cape Coral, Florida. Mason Hill pitched itself as a real estate investment firm, promising clients low-priced rental properties, full management, and consistent returns. It was a lie.

The scheme, as laid out in court, was classic Ponzi territory. Investors’ funds weren’t being used to purchase and manage properties as promised. Instead, the money was shuffled around – used to pay off earlier investors, cover company expenses, and line the pockets of Brody and Roser. Some investors never saw a dime of return, receiving neither property nor refunds.

According to the plea agreement, Brody admitted to being the driving force behind the operation from April 2009 through early 2011. He made the key business decisions, oversaw employees, and directed how company funds were spent. He knowingly built a house of cards, taking in investments under false pretenses and diverting the capital for personal gain. The fraud wasn’t a mistake, it was a calculated con.

Roser, too, faces consequences for her role. She pleaded guilty in June to a misdemeanor charge of selling securities without proper registration. She claimed ignorance of the registration requirements, a defense unlikely to sway Judge Shelby when she’s sentenced August 22, 2013. Brody will also serve 36 months of supervised release after completing his prison term.

The investigation was a joint effort by the FBI and IRS Criminal Investigation, with prosecution handled by the U.S. Attorney’s Office. This case serves as a harsh reminder: promises of easy profits in real estate are often too good to be true, and those who prey on investors will face justice – and a lengthy prison stay.