Federal indictment charges three men for fraud in over $2 million from investors
Two area men have been indicted on various fraud charges for allegedly not repaying nearly $2 million in investments.
A six-count indictment charged Jonathan Freeze, 62, formerly of Pittsburgh, Robert Irey, 59, of Clarksville and Kevin Carney, 59, of Euclid, Ohio, with wire fraud and conspiracy to commit mail fraud.
Acting U.S. Attorney Stephen R. Kaufman alleged Tuesday that the men conspired to offer victims an opportunity to loan funds to their company, Alternative Energy Holdings, LLC, on a short-term basis and at a high rate of return.
According to the federal grand jury indictment, filed in Pittsburgh, the defendants falsely represented that the funds would be used for expenses associated with building a plant that would be capable of turning certain types of waste into energy.
Instead, prosecutors alleged, the men used the majority of the $2,017,228 in funds for their own personal use and enjoyment for rent, utilities, furniture, clothing, restaurants, gambling, boat rentals, vehicles, jewelry, loan repayments, wedding gifts, wedding expenses, legal fees and restitution from an unrelated criminal conviction for fraud.
Of the over $2 million invested by about 22 people, the defendants repaid $63,000. Prosecutors contended, however, that those repayments were made using loans from other alleged victims.
A magistrate judge granted the government’s request for $50,000 unsecured bond for each defendant.
The law provides for a maximum total sentence of 20 years in prison for each count, a fine of $250,000 for each count or both if found guilty, based upon the seriousness of the offense and any prior criminal history.
An indictment is an accusation, and a defendant is innocent until proven guilty.