A federal jury in Idaho has convicted Kelly McCandless, 52, of Rexburg, of four counts of wire fraud and four counts of aggravated identity theft.
According to court records, McCandless defrauded his partners in a construction project out of nearly $500,000.
The project aimed to build a 96-bed student housing property in Rexburg, Idaho, in 2017. McCandless, one of the three individuals who formed the partnership, was supposed to build the property at cost. In exchange for his efforts, he would be entitled to 24.5% of the building equity and all future proceeds.
However, over the next year, McCandless falsified subcontractor invoices, bank withdrawal requests, and used subcontractors’ signatures to withdraw loan proceeds from the bank at a higher amount than what was invoiced to build the project.
The bank relied on those documents and wired McCandless the proceeds from the loan. He continued this scheme to the tune of nearly $500,000 and used the money to purchase personal items like a brand-new pickup truck, several snowmobiles, several dirt bikes, toy haulers, a Jeep, a Jeep Grand Cherokee, $5,000 in dental work, vacations, etc.
Chief U.S. District Judge David C. Nye accepted the jury’s verdict on November 29, 2023, and scheduled McCandless to be sentenced on March 26, 2024, at 11:00 am at the federal courthouse in Pocatello.
Mccandless faces a mandatory minimum of two, and up to twenty years in federal prison.
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Key Facts
- State: Idaho
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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