This week, it was announced that an Alexandria man had been sentenced to prison for his involvement in multiple scams to defraud investors out of more than $2.3 million. 50-year-old Gregg Seitz was sentenced to three years in prison. Court documents explain that the defendant recruited investors to invest in supposed real estate opportunities.
Investors were told that Seitz and others would be involved in the purchase, renovation and reselling of distressed real estate for pennies on the dollar. Investors were told that their money would be used to purchase and flip the properties. Seitz claimed that he had experience with large real estate deals. He also claimed he had earned large returns on his own money from such investments.
Seitz also found investors and asked them to loan money to finance a software company. Investors were falsely told that the software company had a lucrative contact with the Department of Homeland Security. In reality, there was no contract and no real estate deals.
The defendant was accused of using the money to pay back old investors and to finance his own lifestyle. Seitz spent some of the money on mortgage payments, a wine business, travels and luxury vehicles. Investors lost more than $2.3 million, due to his actions. The defendant has been sentenced to three years in prison. He has also been ordered to forfeit $2.3 million and pay $2.3 million in restitution to the victims.