MICHAEL B. SMUCK IS GOING TO JAIL Longtime Louisiana and Texas real-estate investor Michael B. Smuck pled guilty this week to one count of mail fraud in connection with the sale of the Briar Meadows Apartments on Dairy Ashford, just north of Briar Forest Dr. An investment company controlled by Smuck purchased the complex in 2004. Smuck sold the property in 2007, according to federal prosecutors, but didn’t tell his investors. Instead, he used the almost $3.5 million in proceeds to pay debts owed by other business entities he controlled: “Smuck continued to send documentation to investors in Briar Meadows in order to give the fictitious appearance that the investment property was still active. Pursuant to the plea agreement entered into by the parties, Smuck faces a term of imprisonment of 30 months and a $250,000.00 fine. In an effort to make the victims of this crime whole, the United States has secured from the defendant an agreement to pay a minimum of $3,299,480 in restitution to investors in both Briar Meadows and Yellowstone Ranch, which are apartment communities in Houston, TX.” [U.S. Attorney’s Office; background; previously on Swamplot]
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Why was Smuck just prosecuted for mail fraud?
He caused hundreds of people to loose millions of dollars in his real estate investment scheme.
That’s like sending Al Capone to jail for income tax evasion.
Is that the best the Fed’s can do?
What a schmuck.
I worked for MBS Companies on 3 seperate occasions here in Texas and want to say he is a LIAR for saying he lost it all when Hurricane Katrina hit in 2005. MBS’ problems problems began WAY before 2005 and stem solely from misappropriated funds and simply not paying bills. As on-site management we were forced to use any means possible, even our OWN money and resources, to fix resident maintenance issues just to keep them happy, all while hoping our paychecks would clear the bank.
Investors should have checked on their investments instead of relying on a 3rd party saying “it’s all good” and looking at false financial documents. If it seems to good to be true, it generally is. I’m sorry, but if I invest thousands or millions of dollars into something, you can bet your sweet arse you’ll see me there quite often! This company took beautiful communities and turned them into trash in a year. He got what he deserves and then some.