Real estate developer gets 7 years for investment scheme
NEW LONDON, Conn. (AP) — A real estate developer from Florida has been sentenced to over 7 years in prison at a federal court hearing in Connecticut.
Seventy-five-year-old John DiMenna of Vero Beach, Florida operated an extensive real estate investment scheme that defrauded investors and lenders out of millions of dollars between 2010 and 2016.
U.S. Attorney John Durham says DiMenna prepared spreadsheets that inflated projected cash flows for real estate projects, and then shared them with colleagues knowing the figures would be shown to potential investors.
DiMenna also provided his business partners with false sales contracts and lease commitments.
Victim investors lost $28 million, while lenders lost approximately $37 million. DiMenna pleaded guilty to two counts of wire fraud in September 2017, and was released on a $250,000 bond. He is ordered to report to prison in July. DiMenna’s attorney could not be reached for comment.