An Austin, Texas man was sentenced to 70 months in prison and ordered to pay $5,052,366.92 in restitution for his role in a fraud scheme.
According to court documents, from 2012 until June 2018, Jason Michael Schubert, 47, devised a scheme to bilk hotel investors out of millions of dollars. Schubert identified potential investors by conducting seminars on how to make money from investing in hotel properties, known as “Rich in Five” seminars, charging the participants substantial fees to attend. Schubert then solicited money from the participants for investing in preexisting hotel properties that he would manage and operate while claiming that investors would profit with little effort on their part.
However, many of the hotels were older and in substantial disrepair. Although Schubert had no hotel management experience, he represented that investor funds would be used to renovate the hotels. Instead, he misappropriated the money by paying himself significant “management fees.” Schubert’s fraudulent activities depleted investor funds, causing the hotel properties to go into foreclosure with a loss of over $5 million to investors. Click to read more at www.insurancejournal.com.