Ex-Hotel Exec Gets 70 Months For $1.6M Investment Fraud

Law360, New York (April 13, 2012, 5:41 PM EDT) -- The former president of RAI Hotel Acquisition Inc. was sentenced Friday to 70 months in prison for his role in a $1.6 million investment fraud, where New York federal prosecutors said he falsely told investors their money would go toward more than $100 million in hotels.

Instead, prosecutors said, Robert E. McDonald, 32, spent much of the money on personal expenses, including dental cosmetic procedures, Florida real estate and even restitution he owed victims after a previous fraud conviction in 2006.

McDonald was convicted in the...
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