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A convicted fraudster who got out of prison early after completing a drug addiction program was sent back for 2½ more years on Tuesday by a judge who said he was addicted to defrauding people.
U.S. District Judge Ted Stewart sent Christopher D. Hales, 35, back to prison for 30 months for violations of his conditions of parole, finding that Hales had violated federal laws in defrauding his own father.
Hales was indicted in 2010 on charges of mail, wire and bank fraud, and money laundering. Those charges involved a real estate scam operation that involved the purchase of properties in Lindon in Utah County and the Mill Creek area of Salt Lake County.
Federal agents testified that Hales was the ringleader of a group of fraudsters who also inflated vehicle loans, fraudulent investments and other schemes, as well as a number of mortgage frauds.
Hales pleaded guilty in 2011 to one count of bank fraud involving the purchase of two properties in which he obtained inflated appraisals and falsified loan applications in order to obtain financing that was far in excess of the actual sales prices of the properties. He and others pocketed the difference.
Stewart originally sentenced Hales to 7½ years in prison and ordered restitution to victims of $12.7 million.
Hales got out early after completing a drug treatment program. But U.S. Probation officers alleged in June that Hales had violated the terms of his parole by extensive gambling at the Green Valley Ranch Casino in Henderson, Nev.
David Hales, Christopher's father, testified Tuesday that his son had convinced him to open a $100,000 line of credit at the casino by saying it was acting as a bank to finance a company they were operating.
Instead, according to testimony, Christopher Hales spent the money at baccarat tables, losing $196,000 dollars from March 1 to June 2.
Hales' court-appointed attorney, Ed Wall, asked Stewart to adhere to sentencing guidelines and send his client back to prison for a period of 12 to 18 months. Wall said Hales needed treatment for a gambling addiction and impulse control issues.
"He has an addictive personality," Wall said.
But Stewart interrupted to comment "it seems more accurate to say he has an addiction to defrauding people."
Assistant U.S. Attorney Mark Hirata asked for a maximum sentence of three years in prison, saying the previous time behind bars had not changed Hales' behavior.