John Thomas, Wire Fraud, Illinois 2014

A Chicago real estate developer has been sentenced to 60 months in federal prison for defrauding the Village of Riverdale of over $370,000 in public funds.

John Thomas, 52, owned and controlled Nosmo Kings LLC, which entered into an agreement with Riverdale to develop property along a marina in 2012.

However, only a portion of the funds were actually used for legitimate construction work, while Thomas misappropriated $372,182 for his own personal use.

Thomas pleaded guilty to one count of wire fraud in May 2014.

Assistant U.S. Attorney Sunil Harjani argued in the government’s sentencing memorandum that Thomas is a ‘serial con man,’ who within months after release from probation from another federal conviction, set out to defraud the Village of Riverdale through the use of the village’s Tax Increment Financing program.

Nosmo Kings entered into a TIF agreement with Riverdale in February 2012, requiring Thomas to submit documentation identifying completed construction expenses, including invoices and checks paid to vendors.

Thomas created and submitted false invoices for non-existent companies and for companies that never performed work at the marina, using other TIF funds to pay personal expenses and the rent on his apartment.

In addition to the five-year sentence, U.S. District Judge James B. Zagel ordered restitution of $372,182.

The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.

The government is being represented by Assistant United States Attorney Sunil Harjani.

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