U.S. Attorney Dana J. Boente announced Friday an Alexandria man was sentenced to three years in prison for defrauding investors of more than $2.3 million.
Fifty-year-old Gregg Seitz of Alexandria recruited several investors to invest in purported real estate opportunities. He told investors that he and others purchased, renovated and resold distressed real estate for pennies on the dollar and their money would be utilized to purchase and flip the real estate, according to court documents.
Seitz claimed to be earning large returns from these investments and have experience with large real estate deals. Seitz found investors who were interested in loaning money to finance a purported software company that they believed had a lucrative contract with the Department of Homeland Security.
Seitz financed his lavish lifestyle and paid back old investors with new investor money. He utilized the money to purchase a wine business, international travels, luxury vehicles and mortgage payments. Investors reported a loss of more than $2.3 million.
In addition to the 3-year prison term, Seitz was ordered to pay $2.3 million in restitution and forfeit $2.3 million.