In a case that has shocked the legal community, former lawyer Craig Sherman has pleaded guilty to wire fraud charges in West Palm Beach Federal Court. Sherman, an 80-year-old retired lawyer, admitted to defrauding friends and clients through an investment scheme spanning from 2013 to 2020. Under the guise of soliciting investments for real estate projects, Sherman diverted the funds for personal use and to sustain his law firm. The total amount of the fraud is estimated to be close to $7 million, and Sherman faces up to 20 years in prison for each count as well as restitution to the victims. The sentencing hearing is yet to be scheduled.
Former Lawyer Pleads Guilty to Wire Fraud in West Palm Beach Federal Court
Craig Sherman pleads guilty to wire fraud charges
Former lawyer Craig Sherman, aged 80, pleaded guilty to two counts of federal wire fraud charges in West Palm Beach, Florida. Sherman admitted to defrauding friends and clients through an investment scheme that took place between 2013 and 2020. He was an attorney in Boca Raton, Florida, and also served as the town attorney for the Town of Bay Harbor Islands, Florida. Sherman solicited friends and clients to invest in real estate projects in the Town of Bay Harbor Islands, promising them annual interest rates between 6% to 8% for their loans. However, instead of using the investment money for the construction projects as promised, Sherman used it for personal expenses and to sustain his struggling law firm. Some of the investment money was also used to cover payments due to other investors. The total amount of fraud is approximately $7 million. Sherman faces a potential maximum prison sentence of 20 years for each count and will be ordered to pay restitution to the victims.
Background and details of the case
Sherman’s fraudulent activities took place between 2013 and 2020. During this period, he engaged in an investment scheme where he solicited friends and clients to invest in real estate projects in the Town of Bay Harbor Islands. The projects were either planned or already in progress. Sherman claimed that the investors would receive interest rates ranging from 6% to 8% annually for their loans, with the principal being returned when the construction projects were completed. However, Sherman misused the investment money for personal expenses and to sustain his law firm, instead of utilizing it for the intended purpose. The investigation into Sherman’s fraudulent activities revealed evidence of his wrongdoing.
Sherman’s role as an attorney and town attorney
Craig Sherman had a legal career as an attorney based in Boca Raton, Florida. In addition to his private practice, he served as the town attorney for the Town of Bay Harbor Islands, Florida. As the town attorney, Sherman provided legal advice and representation to the town government and its officials. His role involved advising on legal matters, drafting contracts and agreements, and representing the town in legal proceedings.
Sherman’s investment scheme
Sherman’s investment scheme involved soliciting friends and clients to invest in real estate projects in the Town of Bay Harbor Islands. These projects were either planned or already underway. Sherman promised investors annual interest rates of 6% to 8% on their loans, with the principal to be returned upon project completion. Through his scheme, Sherman sought to raise funds for the construction projects through private investments.
Misuse of investment money
Instead of using the investment money as intended, Sherman misused it for personal expenses and to sustain his struggling law firm. The investment money was used to cover Sherman’s personal expenses, such as living expenses, luxury purchases, and travel. Additionally, Sherman used the investment money from some investors to make payments due to other investors, effectively running a Ponzi scheme.
Total fraud amount
The total amount of fraud committed by Sherman is estimated to be close to $7 million. This figure represents the sum of the investment money that Sherman obtained through his fraudulent scheme.
Sentencing hearing and potential consequences
The sentencing hearing for Craig Sherman is yet to be scheduled. Upon sentencing, Sherman faces a potential maximum prison sentence of 20 years for each count of wire fraud he pleaded guilty to. Additionally, he will be ordered to pay restitution to the victims, compensating them for their financial losses as a result of his fraudulent activities.
Announcement of guilty plea by U.S. Attorney and FBI
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced Craig Sherman’s guilty plea. The guilty plea was made in relation to the two counts of federal wire fraud charges that Sherman faced. The U.S. Attorney’s Office and the FBI conducted the investigation into Sherman’s fraudulent activities, with the FBI Miami, West Palm Beach Resident Agency leading the case. Assistant U.S. Attorney Laurence M. Bardfeld is responsible for prosecuting the case against Sherman.
Investigation and prosecution
The investigation into Craig Sherman’s fraudulent activities involved collecting evidence to support the charges of wire fraud. The FBI Miami, West Palm Beach Resident Agency led the investigation, working collaboratively with the U.S. Attorney’s Office for the Southern District of Florida. The evidence gathered during the investigation, including financial records and witness testimonies, supported the charges brought against Sherman. Assistant U.S. Attorney Laurence M. Bardfeld is responsible for prosecuting the case.
Court documents and information
Court documents and information related to the case of Craig Sherman’s wire fraud charges can be accessed through the official website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov. These resources provide detailed information about the case, including the charges, court proceedings, and any relevant documents related to the prosecution of Sherman’s wire fraud charges. The availability of these resources allows for transparency and access to information for anyone interested in understanding the details of the case.