A federal judge in Utah sentenced an Atlanta resident to prison on Friday for fraud and money laundering in connection with a real estate project in Vernal.
U.S. District Judge Dale Kimball sentenced Martin A. Pool, 44, to 6½ years in federal prison after his guilty plea to fraud and money laundering charges. He was ordered to pay $8 million in restitution to the victims.
Pool and co-defendant Armand R. Franquelin, 57, Liberty, Utah, pleaded guilty in May to the fraud that involved a real estate project in Vernal.
The two admitted they had persuaded investors to convert traditional Individual Retirement Accounts into self-directed accounts and invest in the Haven Estates project with promised returns of 8 percent to 20 percent.
In pleading guilty, the pair admitted they had used investor monies for personal expenses and to make payments to other investors in what is known as a Ponzi scheme. The project was foreclosed on after they failed to make loan payments.
Sentencing for Franquelin is set for Sept. 22. He also agreed to the $8 million restitution.
Typically fraud victims get very little if any money returned to them.
tharvey@sltrib.com