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Real Estate Promoter Pleads Guilty to Defrauding Investors
A New York real estate promoter has pleaded guilty to defrauding investors out of $650,000.
Eliezer Tilson, 37, of Netanya, Israel, admitted to violating the Travel Act in connection with his embezzlement of $650,000 in investor funds.
According to the allegations, in October 2019, Tilson solicited investments from two investors in New York City in an investment fund that focused on multifamily residential real estate projects.
The two investors together sent $650,000 to Tilson for investment in the fund. However, Tilson never transmitted any of the victims’ money to the fund. Instead, he used most of the money to pay dividends to other investors in separate, unrelated real estate projects and pay down prior debt incurred by other, unrelated entities.
Tilson falsely assured the victims that the fund had their money and later told them that he had arranged to send their money to the fund by wire transfer but that the wire had not yet gone through. He subsequently sent the victims a document purportedly from his bank showing a balance of more than $800,000 in his account when, in fact, that account was overdrawn.
Tilson, who is expected to face a maximum sentence of five years in prison, has been charged with one count of violating the Travel Act, which prohibits the use of facilities in interstate and foreign commerce, including wire communications, to carry out unlawful activities such as engaging in monetary transactions in property derived from fraud in the sale of securities.
The investigation was led by the Federal Bureau of Investigation, with the case being handled by the Office’s White Plains Division. Assistant U.S. Attorney James McMahon is in charge of the prosecution.
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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