An Edmond man was sentenced Friday to a year in prison and ordered to pay nearly $1 million in restitution.
Today, Gregory Scot Conrady, 52, of Edmond, was sentenced by United States District Judge Timothy D. DeGuisti to serve 12 months and one day in prison for money laundering and wire fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Conrady was also sentenced to pay $919,150.74 in restitution to two victims, serve two years of supervised release after his release from prison, and perform 104 hours of community service.
According to court documents and information from court proceedings, in April of 2007 Conrady solicited financial backing from investors to purchase portfolios of distressed debts for pennies on the dollar and then attempted to collect those debts to make money.
Conrady used debt brokers to locate debt portfolios for purchase, with the debts consisting primarily of promissory notes secured by mortgages on residential properties. Conrady formed Coltate Capital, LLC, and the investors invested over $10 million to carry out this enterprise.
From November of 2007 through April of 2010, Conrady defrauded the investors by reporting broker’s fees substantially higher than what he actually negotiated with the broker and diverting the excess funds to Conrady’s personal companies, Coltate Properties, LLC, and Silverstreak, LLC. Conrady’s fraudulent scheme also involved the misappropriation of individual mortgage payments that were mailed to Coltate Capital, LLC.
Conrady was indicted by a federal grand jury on July 17, 2012. He pled guilty to committing money laundering and mail fraud on August 29, 2012.
This case was investigated by the Internal Revenue Service Criminal Investigation and was prosecuted by Assistant U.S. Attorney Amanda Maxfield Green.