(Crain's) — An Arizona man was sentenced Tuesday to three years in federal prison for his role in defrauding 48 Chicago condominium associations of about $2 million.
Jay Strauss, 76, of Scottsdale, Ariz., also was ordered to pay $2 million in restitution, according to a spokesman for the U.S. Attorney in Chicago. The judge, Robert Dow Jr., noted in court that it is unlikely restitution will ever be paid.
Mr. Strauss pleaded guilty to defrauding the condo associations, made up of more than 700 individual unit owners, by falsely claiming that his property management company, Chicago-based Regent Realty Group Inc., was using association payments for property maintenance. The funds actually were being used to pay off debt on other real estate owned by Mr. Strauss and a partner.
Thanks to Chicago Tribune real estate reporter Pam McKuen for this link. As she says, it's about time and it should have been a longer sentence.