By Alexa Epitropoulos | [email protected]
An Alexandria man was sentenced to three years in prison for running multiple scams that defrauded investors of more than $2.3 million, according to the U.S. Attorney’s Office of the Eastern District of Virginia.
Gregg Seitz, 50, recruited investors to invest in supposed real estate opportunities, according to court documents. Seitz told investors that he and others were involved in purchasing, renovating and reselling blighted real estate for pennies on the dollar, telling them that their money would be used to purchase and flip real estate. Seitz claimed to have experience with real estate deals and to be earning major returns on his money from the investments.
Seitz found additional investors to loan money to finance what he claimed was a software company that had a contract with the U.S. Department of Homeland Security.
There were, in actuality, no real estate deals or government contracts. Seitz used new investor money as a way to pay back old investors, while financing a luxury lifestyle, including expensive cars, mortgage payments on an Alexandria townhouse, a wine business, extensive international travel and high-end retailer purchases.
The court ordered Seitz to forfeit $2.3 million and pay $2.3 million in restitution for his victims.