OMAHA (CN) – A Nebraska man was convicted Monday for scamming real estate developers who sought private equity funding by telling them he has connections with investors, federal prosecutors said in a written statement.
David Lane Musk, 53, of Omaha, was found guilty by a federal jury on three counts of wire fraud. He has a prior conviction for felony identity theft from 2001.
Prosecutors said Musk operated under the business names of Pavilion Capital Group or Pavilion Commercial Group, telling developers that his investor connections required a complete FBI and Interpol background check for each prospective principal of a development project.
“Musk charged $600.00 for the background checks with full knowledge that he did not have any connections to the equity funding sources he claimed to represent,” prosecutors said. “Further he did not have the ability, nor intention, to procure FBI or Interpol background checks.”
Musk faces up to 60 years in federal prison and a fine of $750,000. He is scheduled for sentencing before U.S. District Judge Joseph F. Bataillon on August 3 and remains free on release conditions, including the taking down of all web sites used in connection with marketing of his real estate business.