A Rock Island, Illinois businessman, Todd B. Raufeisen, has been sentenced to 72 months imprisonment for defrauding investors in his land development and management projects of approximately $1.7 million.
On October 23, 2017, Raufeisen, 56, entered his guilty pleas to one count each of wire fraud and money laundering. U.S. District Judge Sara Darrow also sentenced Raufeisen to three years of supervised release following release from prison and ordered him to pay over $1.72 million in restitution to his 22 victims of fraud.
Raufeisen was ordered to report to the federal Bureau of Prisons on October 23 to begin serving his sentence. In court documents and statements, Raufeisen admitted that from 2010 to August 2016, he engaged in a scheme that defrauded approximately 22 investors in his development projects and resulted in a loss of approximately $1.7 million.
Raufeisen engaged in business under various business names, including RDC Hotel Solutions. As part of the scheme, Raufeisen promised prospective investors a higher rate of interest than conventional, insured investments and short turnarounds on return of the principle and interest.
In exchange for the money invested, Raufeisen promised certain investors that the money would be placed in escrow until needed, would only be used for specific development or management projects, and, if unused, the money would be returned to the investor. In fact, Raufeisen used the investors’ money for personal expenses and to pay previous investors to whom he was indebted.
The Internal Revenue Service Criminal Investigation Division; Federal Bureau of Investigation; and, the Office of the Illinois Secretary of State conducted the investigation. Assistant U.S. Attorney Donald Allegro prosecuted the case on behalf of the government.
Key Facts
- State: Illinois
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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