A phony real estate investment scheme will put a former New York City police sergeant in prison for 58 months in prison.
James Monahan, 44, the ex-NYPD cop who ran the $4.7 million investment scheme, was given the almost five-year sentence by U.S. District Judge John G. Koeltl, according to a statement from the U.S. Attorney’s Office for the Southern District of New York in Manhattan.
According to criminal indictment, at the time of the fraud, Monahan was the owner of a real estate investment company, PanAm Management Group. Monahan promised investors that PanAm was developing a real estate project in the Domincan Republic. In the criminal complaint, U.S. Attorney Preet Bharara’s office showed that instead of building the Caribbean project, that Monahan and an accomplice “misappropriated those funds,” after placing the money in an escrow account.
In May, 2013, Monhan pled guilty to one count each of mail fraud, wire fraud, and conspiracy to commit mail and wire fraud for operating a fraudulent real estate scheme.
Monahan was arrested in May, 2012, along with alleged accomplice, Edward Adams.
The scheme began in 2008, when Monahan, who had retired as a NYPD police sergeant, started soliciting funds for the Dominican Republic project.
After Monahan and Adams had looted the escrow account, in 2009, he sent letters to investors, using forged stationary of a major bank, falsely assuring them that the money was safely deposited in that bank.
Also included in Monahan’s sentencing, Judge Koeltl ordered him to pay $4.7 million in restitution, and held under three years of supervised release.