Samuel Ray Palasota, Investment Fraud Scheme, Texas 2013

A Houston-area pastor has been ordered to federal prison following his convictions on multiple counts of mail and wire fraud, announced United States Attorney Kenneth Magidson.

Samuel Ray Palasota, 53, was convicted of 21 counts of mail fraud and three counts of wire fraud in conjunction with an investment fraud Ponzi scheme after three days of trial on Oct. 17, 2013.

Today, U.S. District Judge Ewing Werlein Jr. found the intended loss amount to be more than $1 million, because Palasota had attempted to cause the victim to sell her home and give him those funds in addition to the $650,000 in investment funds she had already sent him.

As a result of the convictions and total intended loss, the court ordered he serve 71 months in federal prison to be immediately followed by a three-year-term of supervised release.

Judge Werlein further ordered the forfeiture of two vehicles Palasota had purchased with proceeds of the fraud scheme - a Dodge Ram truck and a Hyundai Genesis sedan.

During trial, the victim of the fraud scheme testified that Palasota convinced her to invest in what he claimed was a real estate investment program.

Palasota provided her with documentation of the so-called real estate investment that was to be run under his company name, “The Maker’s Resources.” The documents from Palasota stated she would receive a “guaranteed” 40 percent return on her principal annually if she provided Palasota with $650,000 to invest.

At the hearing today, additional evidence was presented including religious-themed letters Palasota had written to the victim in order to lull her into complacency while she was “investing” her money with him.

Detailed bank records and financial charts were introduced at trial demonstrating Palasota invested none of the victim’s funds in real estate.

Source: https://www.justice.gov/usao-sdtx/pr/houston-area-pastor-heads-prison-investment-fraud-scheme