A Toms River man and his partner from Marlboro were sentenced to prison today for their roles in an investment fraud that netted the men nearly $1 million.
Real estate developers David Moulakis, 55, of Toms River and Allen Weiss, 60, of Marlboro were sentenced to prison by U.S. District Judge Anne E. Thompson for embezzling funds they raised in connection with supposed real estate developments, according to a release by U.S. Attorney Paul J. Fishman.
Both men pleaded guilty to conspiracy to commit wire fraud. Moulakis was sentenced to 12 months in prison while Weiss' guilty plea earned him 27 months.
Fishman said the pair worked from January 2009 to February 2010 to raise money from investors by promising "high returns and fictitious guarantees on investments" while assuring existing investors that their funds were secure by falsifying account and mortgage documents.
Moulakis and Weiss, along with other co-conspirators, used the nearly $1 million they embezzled on personal expenses and never developed promised professional service locations for physicians in Holmdel, Hazlet and Neptune, Fishman said.
In addition to their prison terms, Thompson sentenced Moulakis to three years supervised release and Weiss to five years supervised release. They also were ordered to pay $1,348,808 in restitution.