Today is Saturday, October 25, 2014

MJ broker pleads guilty to wire fraud

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Real estate brokers are entrusted by citizens and investors to maintain client funds for their intended purpose, not to be used improperly for personal gain, Rivera said. The U.S. Attorneys Office will continue to seek out and prosecute professionals who defraud their clients or betray their positions of trust.


At the plea hearing, Foust admitted obtaining a $200,000 deposit via interstate wires from clients who sought to purchase a parcel of commercial real estate located in Madison. Contrary to her representations to these clients, Foust did not keep these funds in trust for use as a down payment on the commercial parcel but instead, converted the funds to her own use by writing checks totaling $170,000 to other accounts controlled by her.


Foust further admitted writing a check to the sellers of the commercial parcel that was returned for insufficient funds, and failing to appear at the closing for the sale of the property, which was never consummated.


After accepting Fousts plea, U.S. District Judge William J. Haynes Jr. scheduled a sentencing hearing for Sept. 12. Foust faces a maximum sentence of 20 years in prison and a maximum fine of up to $250,000.


The case was investigated by the FBI and was prosecuted by Assistant U.S. Attorney William F. Abely.

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