Kelly Ryan McCandless, Wire Fraud and Aggravated Identity Theft, Idaho 2023

A Rexburg man has been sentenced to 65 months in federal prison for his role in a massive wire fraud scheme that netted him over $580,000.

Kelly Ryan McCandless, 53, was found guilty of four counts of wire fraud and four counts of aggravated identity theft after a six-day jury trial in November 2023.

According to court records, McCandless and two partners formed a partnership in 2017 to build a 96-bed student housing property in Rexburg, Idaho. McCandless's contribution was to build the property using a loan secured by the partnership, at cost. In exchange for his efforts, he would be entitled to 24.5% of the building equity and future proceeds.

However, McCandless began falsifying subcontractor invoices and bank withdrawal requests almost immediately after the partnership began. He 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.

McCandless continued this scheme for months, improperly taking approximately $580,000, which he used to purchase personal items such as a brand-new pickup truck, several snowmobiles, several dirt bikes, toy haulers, a Jeep, a Jeep Grand Cherokee, $5,000 in dental work, vacations, and other expenditures.

Chief U.S. District Judge David C. Nye also ordered McCandless to pay a $10,000 fine and to serve three years of supervised release following his prison sentence.

U.S. Attorney Josh Hurwit said, 'The defendant defrauded partners who put their trust in him and spent the funds he stole on a lifestyle he could not legitimately afford.'

Shohini Sinha of the Salt Lake City FBI added, 'Like many fraudsters, McCandless was motivated by greed, lining his pockets with the embezzled money and spending it on expensive toys for himself.'

Source: https://www.justice.gov/usao-id/pr/rexburg-man-convicted-wire-fraud-and-aggravated-identity-theft-sentenced-more-5-years