Developer jailed after failing to pay restitution in Ypsilanti Township real estate fraud case

Shelton jailed George pending his sentencing and said if George fails to pay a minimum of $50,000 restitution at his sentencing, the court would proceed without probation.

Robert George (right) confers with his attorney in this file photo.

Public defender Gina M. Noveskey said George's source of funds "fell through," but that they "believe the money would be available in the near future."

In December, George pleaded guilty 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.

Prosecuting attorney Brenda L. Taylor told the court Tuesday that "Mr. George has done nothing but lie" and the "victims need the money."

Under the sentencing agreement, George is expected to be put on probation for five years and will be given an opportunity to pay $873,387 in restitution.

For the first year of probation, George must pay $4,000 each month in restitution. The monthly payments increase by $1,000 for each year thereafter until the probation is completed, prosecutors said. George must pay the remainder of the money in full by the end of his probation, Washtenaw County Chief Deputy Assistant Prosecutor Steve Hiller said.

The plea comes after a five-year investigation by deputies. At least twelve individuals or couples were victimized in the case, prosecutors said.

Heather Lockwood is a reporter for AnnArbor.com. Reach her at heatherlockwood@annarbor.com or follow her on Twitter.