Alexandria Feds: Pair Impersonated Lawyers To Loot Escrow Cash Raised From Investors For Bogus Real Estate Deal

From the Office of the U.S. Attorney (Alexandria, Virginia):

• Brett A. Amendola, 38, of Ashburn, Va., was sentenced to 84 months in prison [] for carrying out a $5 million Ponzi scheme involving his purported purchase of a golf course in Loudoun County, Va. The scheme resulted in losses of at least $2.8 million to more than a dozen victims who had invested with Amendola.

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• According to court records, during 2010 and 2011, Amendola persuaded various investors to provide him with short-term funding that would be held in escrow to fulfill a requirement by his lender to purchase the Beacon Hill Golf Course in Loudoun County.
  
  He promised that the money would be returned to the investors – with interest – in a matter of days. In reality, Amendola diverted the investors’ money to his own use, including funding his and family members’ trading accounts, making payments to investors in this and other schemes, and paying for personal expenses, including gambling.
  
  To carry out his fraud, Amendola posed as the attorney representing the escrow account both over the phone and through various email messages, leading investors to believe that they were wiring funds to financial accounts controlled by the escrow attorney, when in reality the financial accounts were controlled by Amendola and quickly looted for his personal use. In sentencing Amendola, the Court found that the fraud was sophisticated and that Amendola abused a position of trust when he impersonated the lawyer.
  
  In a related case, Jerry J. Mckerac, 61, of Las Vegas, Nev., and Fond du Lac, Wis., was charged [] in an indictment with conspiracy to commit wire fraud and aggravated identify theft for his involvement in the scheme, which the indictment alleges included similarly impersonating the escrow attorney as well as Amendola’s father while dealing with the victims.

For the U.S. Attorney press release, see Ashburn Man Sentenced To 84 Months For Ponzi Scheme Involving Purchase Of Beacon Hill Golf Course.