Developer convicted in Ypsilanti Township real estate fraud sentenced to probation
A developer who investigators say defrauded home buyers and subcontractors out of roughly $700,000 as he failed to complete an Ypsilanti Township condominium project several years ago was sentenced today to five years of probation, according to Washtenaw County Chief Deputy Assistant Prosecutor Steve Hiller.
Robert Paul George, 63, of Royal Oak, the developer of the Crystal Pond Condominiums project in Ypsilanti Township, paid $50,000 in restitution today. He still needed to pay a $130 victim's right fee to be released from the Washtenaw County Jail, Hiller said.
Robert Paul George
George was jailed Jan. 25 after failing to pay the minimum of $50,000 in restitution at his sentencing. His sentencing was adjourned until March 1 and he was to remain in jail until then, unless he could pay the amount sooner and receive an accelerated sentencing, Hiller said.
George still owes more than $800,000 in restitution, which he must pay in graduated monthly installments through the course of his probation, leaving him with a balloon payment of $463,387 at the end of his probation, Hiller said.
George pleaded guilty in December to nine counts of fraudulent use of building contract funds, two counts of larceny by conversion of more than $1,000 but less than $20,000 and one count of larceny by false pretenses of more than $999 but less than $20,000. He also pleaded no contest to larceny by conversion of $20,000 or more, court records show.
According to Washtenaw County sheriff's investigators, George accepted deposits and other money from home buyers and kept it for personal use. Only two of the project's 14 units were completed, deputies said.
Heather Lockwood is a reporter for AnnArbor.com. Reach her at heatherlockwood@annarbor.com or follow her on Twitter.
Comments
Jim Nazium
Thu, Feb 17, 2011 : 11:08 a.m.
Hmm, in the previous article it was estimated that the total losses including those to the banks totaled 20 Million! Funny what a few months can do. Next week it will be down to a $5 fine and an apology from the victims that they inconvenienced him by having used up his valuable scamming time ( sarcastic ). If the banks can just write it off as a loss then guess who's paying for it now? You and me, ala bailout system I'm sure. ( Not sarcastic, angry voice this time ). White Collar Crime hurts far more people than petty theft or a drug possession charge, make the punishment fit the crime. If someone wanted to run on the platform of making these sleeze-bags pay and give a myriad of examples as they campaign and call out these good 'ol boys judges/prosecutors, they would have a great shot of being elected. Somebody needs to start protecting the common man again, will You be the next hero? ( this is the part when a reader gets inspired and starts a political career and mentions in their memoirs that this is where it all started, thank you ).
Advo
Wed, Feb 16, 2011 : 8:26 p.m.
Do you really think the victims will ever get their lost money back? Advo
zip the cat
Wed, Feb 16, 2011 : 7:25 p.m.
If rick snyder gets his way there won't be any prisons to send the felons too Its no surprise he got what he got for doing what he did. In this county/state if you do the crime you DO NOT to the time. No sence trying to vote out all the judges,they all run un-opposed
Hmm
Wed, Feb 16, 2011 : 3:45 p.m.
So let me get this straight. Get caught robbing the neighborhood gas station for $200 gets you 5 years in PRISON, but stealing $700,000 gets you 5 years of probation. What is wrong with our "justice" system that can allow something like this to happen? And people are saying "oh the judge just wants him to pay back restitution" as if that's enough of a punishment. This man STOLE three quarters of a million dollars and didn't spend one day in prison, complete outrage!
my two cents
Wed, Feb 16, 2011 : 4:14 p.m.
I am actually one of the victims. Would I like to see Mr. George repay all the money he took from us, and serve a prison term as well? You're darn right I would. I whole-heartedly agree that's what he deserves. But since that isn't going to happen, I do want every possible chance to get my money back. It's likely Mr. George will default on the terms of his probation at some point, in which case, he will go to prison. And don't forget he will always have 12 Felony convictions on his record. No, it's not a perfect outcome for me and his other victims, but I'm glad that some measure of justice is going to be served.
my two cents
Wed, Feb 16, 2011 : 3:19 p.m.
The sad truth is, most people involved in this kind of scam are never charged with a crime. Kudos to Det. Kevin Parviz of the Washtenaw County Sheriff's Department and to Procecuting Attorney Brenda Taylor for stopping this guy from leaving a longer trail of victims in his wake. Their dedication to this case and tireless work over the past 6.5 years is to be commended. As for Judge Shelton, I'm sure he was acting in the best interest of the victims when he gave Mr. George an opportunity to pay restitution in lieu of going to prison. If the man can't work, his victims will never get a cent of their money back. However, if he fails to comply with the repayment schedule, his probation will be revoked and he will go to prison.
jondhall
Wed, Feb 16, 2011 : 12:40 p.m.
Everyone is looking at this the wrong way, throw the guy in jail you collect nothing, now I'm sure he will come up with all the money he can to stay out of jail if not back he goes. I like this line of sentencing, otherwise we the public gets nothing but a bill. Whoever this Judge was vote him or her back in! Just keep him on a tether so he does not leave the country would be my only concern. I do not side with criminals I just wonder if it was all intentional of not? This economy has taken allot of good people down. This is all I know of this story.
PattyinYpsi
Wed, Feb 16, 2011 : 11:36 a.m.
OK, let me see if I have this straight. This guy, who STOLE (you call it "defrauded," I call it stole) $700,000 from contractors and homeowners went to jail last month because he refused to make a minimum restitution payment--$50,000. Guy still hasn't paid his $130 jail fee. Clown is still supposed to pay $800,000 in restitution. And his sentence is probation. Is that right? I want to know the name of the judge who "sentenced" him. Because any judge who would look the other way at white-collar crime of this magnitude, coupled with a complete disregard for making the minimum in restitution, doesn't deserve to be on the bench. I'd also like to know what kinds of sentences this same judge has handed down to people convicted of petty theft. And you wonder why citizens are cynical. This thief should be in jail for the next 25 years. Period.
Jim Nazium
Wed, Feb 16, 2011 : 11:11 a.m.
Another white-collar crime with a slap on the wrist, how sad.
WhyCan'tWeBeFriends
Wed, Feb 16, 2011 : 7:41 a.m.
I do certainly regret there were/are victims but when did this occur? If it was pre-2004 or so, no one really saw the realty downturn coming. If it was 2006 or later - well, shame on him. Businesses base projects on future earnings all the time. I don't know this man but perhaps he, like many of us, was caught unaware? Not a fan, not a foe, just saying.
snapshot
Wed, Feb 16, 2011 : 4:12 a.m.
So the folks that got bilked have to wait for their money, in affect, providing a loan for this low lifer. Can we recall the judge who slapped his hand?
zip the cat
Wed, Feb 16, 2011 : 12:52 a.m.
Never,ever give more than 50% down or up front and never/ever give CASH to any contractor. I was right in a comment about this guy from a previous article. I said he would get a no nothing probation sentence. Just business as usuall in the local courts
RJA
Wed, Feb 16, 2011 : 12:21 a.m.
Yikes, what a way to live (on other people's money). When I hire a contractor or builder, they might get the money to buy materials, labor is paid in full when I am happy with a job well done. Some may laugh at me, but I have also gone to pick out and pick up materials with the contractor and paid for it. I don't know this man, but I wouldn't want to walk in his shoes in the future.
nxil2009
Tue, Feb 15, 2011 : 11:37 p.m.
Wow. I should go into developing instead of robbing people to get money.
Bertha Venation
Wed, Feb 16, 2011 : 1:51 p.m.
HA. What's the difference?