Houston real estate developer spent $571K of investors money on vacations: US Attorney
HOUSTON - On Friday, Walter Salek from Houston pleaded guilty to wire fraud, according to U.S. Attorney Alamdar S. Hamdani on Friday.
The 47-year-old confessed to his involvement in a fraudulent scheme aimed at obtaining more than $1 million and lying to an investor, telling them the money would be allocated towards real estate development.
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During the plea, Salek admitted between 2019 and 2021, he engaged in agreements with an investor for the development of real estate projects in the Houston area. According to the terms, Salek was to contribute real estate properties while the investor provided cash for development purposes. Upon completion, the properties were intended to be either leased or sold.
The investor, operating under the belief that the funds would be appropriately used for the developments, deposited more than $1 million into business bank accounts Salek controlled, using interstate wire communications.
However, Salek redirected at least $571,000 of the investment funds for his own personal expenses, including mortgage payments and luxury vacations.
Salek faces a maximum of 20 years in federal prison and a potential $250,000 fine. His sentencing is scheduled for July 11, to be determined by U.S. District Judge Sim Lake.
He has been permitted to remain on bond pending the sentencing hearing.
The investigation was conducted by the FBI, with Assistant U.S. Attorney Belinda Beek prosecuting the case.