Sheldon Haag, 34, was sentenced to one day in prison and one year in prison. He must also forfeit $277,331 and pay restitution that has not yet been determined.
BOSTON — A Connecticut real estate agent was sentenced Monday in Boston federal court for participating in a multi-year scheme to defraud customers, according to an announcement by U.S. Attorney Joshua Levy for the District of Massachusetts.
Prosecutors allege Sheldon Haag, 34, of Glastonbury, Conn., fraudulently short-sold government and bank-owned real estate to straw buyers acting on their own. Haag pleaded guilty in June 2023 to one count of conspiracy to commit wire fraud.
On Monday, Haag was sentenced to one year and one day in prison, followed by two years of supervised release. Hague will also have to forfeit $277,331 and pay restitution in an amount not yet determined.
Prosecutors say Haag and fellow real estate agent James Macchio used straw buyers to buy real estate owned by the brokerage’s clients, including banks, federal agencies, bankruptcy trustees and other mortgage holders. obtained. The scheme involved a shell company set up by the co-conspirators disguised as a construction company.
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Prosecutors allege that Hague and his co-conspirators hid their involvement as de facto buyers of short-sale properties from customers and property owners. They used their inside knowledge as owner brokers to lower sales prices and maximize profits from later “flipping” properties.
While carrying out the “inversion scheme,” Hague and his co-conspirators reportedly stole money from contractors to their own customers, including from a trumped-up construction company they controlled through their co-conspirators. They allegedly further defrauded customers by submitting bogus renovation bids.
Prosecutors allege that after a customer submitted a fraudulent bid, Haag and his co-conspirators hired another contractor at a much lower price and maintained the difference between the fraudulent bid and the actual cost of renovating the property. I am doing it.
Macchio pleaded guilty in May and will be sentenced on November 19th.
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Dalton Zbierski is a digital content producer and writer for FOX61 News. He can be reached at dzbierski@FOX61.com.
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