Monday, June 3, 2019

Macedonia man sent to prison for bilking elderly investors out of $570,000

CLEVELAND, Ohio – A Macedonia man who defrauded senior citizen investors out of more than $570,000, in part to feed his gambling and prescription pill addictions, was sentenced Wednesday to 6 1/2 years in federal prison.

William Callam, 61, made false statements to three investors from Lake County and used their money not for his business, Blackstone Real Estate Group, but for himself and his family. The scheme was the latest for a man who has racked up multiple criminal convictions in recent years for defrauding investors.

Callam pleaded guilty in January to a wire fraud charge, as well as four counts of mail fraud, and agreed to serve a sentence of between 63 and 78 months in federal prison. U.S. District Judge James Gwin decided to sentence him on the high end of that range.

He also ordered Callam to pay more than $574,000 in restitution to the victims. In addition, the judge had the U.S. Marshals Service take Callam into custody following the sentencing.

Callam, through Blackstone, defrauded a married couple from Mentor and a person in Eastlake starting in 2013, doing so by telling investors that Blackstone was in the business of financing loans to buy and rehabilitate commercial property. Callam told investors that loans were secured by mortgages on the property.

Callam told them that investments in Blackstone were very liquid, that others had invested and guaranteed a steady 6 percent rate of return. All of those claims, as well as statements that investing in Blackstone was a safe venture, were false, charging documents say.

Investors liquidated their annuities, insurance policies and other retirement assets to invest in Callam’s company.

The charging documents state that Callam created false investment statements and mortgage notes and provided them to the couple in Mentor. That couple lost $381,571.47, while the Eastlake investor lost $192,575.

Assistant U.S. Attorney Megan Miller wrote in a sentencing memo that Callam abused the investors’ trust and stole money they saved for retirement.

“This was not a situation in which the victims were defrauded at random by an unknown perpetrator,” Miller wrote. “To the contrary, Callam intentionally targeted the victims because they were elderly and trusted him.”

She also wrote that he has a “significant and concerning” history of crimes similar to those in the current case. Callam was convicted of theft in 2007 for defrauding two victims out of more than $68,000 by falsely stating he was part of an organization to aid senior citizens and promising to invest their money in annuities.

He was also convicted that year for defrauding four others of $49,000 by using money given to him for annuity payments and using it for himself.

Callam was also convicted in 2015 for defrauding a victim of $55,000 by falsely holding himself out as an insurance agent who was certified to sell annuities with a guaranteed 3 percent rate of return, Miller wrote.

Matthew Williams, an attorney for Callam, wrote in a sentencing memo that some of the money Callam took was used to feed gambling and prescription painkiller addictions. It said Callam no longer abuses medications.

Dean Valore, another lawyer for Callam, said in a brief interview that he was surprised by Gwin’s decision to have his client taken into custody following the sentencing. While federal judges have discretion to do so and consider a number of factors when deciding whether a defendant should remain free or be in custody, defendants in white collar cases are frequently allowed to self-report to prison.

Valore said Callam was “successful” in following the conditions of his bond after he pleaded guilty.

Court records show Gwin held a bond violation hearing for Callam in April. Why Callam was accused of violating his bond was not immediately clear. However, the judge allowed the defendant to remain free that day and told the pretrial services officer to let him knew if Callam does not report for a drug test or if Callam tests positive for drugs, records say.

Full Article & Source:
Macedonia man sent to prison for bilking elderly investors out of $570,000

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