For approximately 20 months, Robert E. McDonald perpetrated a scheme to solicit millions of dollars purportedly for
Question:
For approximately 20 months, Robert E. McDonald perpetrated a scheme to solicit millions of dollars purportedly for a \($100\) million purchase by the RAI Entities and certain other related corporate entities to make a \($100\) million purchase of 14 Marriott and Hilton branded hotels.
He made false representations that the RAI Entities or related entities had already raised substantial capital assets toward the purchase of the Midwest Hotel Portfolio; that the RAI Entities and/or related entities had tens of millions of dollars on deposit at various financial institutions, including J.P.
Morgan and Citibank; and that investor funds would be put toward the purchase of the Midwest Hotel Portfolio. McDonald knew that these representations were false. He created phony bank statements that he provided to the hotel investor, and he failed to inform the hotel investor that he had been previously convicted for fraud offenses and was currently under federal-supervised release.
After obtaining approximately \($1,486,323\) from one hotel investor and sending the investor stock certificates by Federal Express from New York City,
New York, the defendant caused the hotel investor’s funds to be diverted to the defendant’s own use, including \($145,000\) through an interstate wire transfer on or about January 15, 2010, to a Citibank account the defendant maintained in New York.
1. Which crimes do you believe that McDonald committed?
2. Does it matter that the stock certificates were sent via Federal Express rather than the US Postal Service?
Step by Step Answer:
Dynamic Business Law
ISBN: 9781260733976
6th Edition
Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs