Hotelier accused of squandering investor funds on Florida home, dental work

Hotel investor Robert McDonald, president of RAI Hotel Acquisition, was arrested yesterday and charged with securities fraud, wire fraud and mail fraud in an alleged $1.5 million Ponzi scheme. McDonald is accused of funneling investor funds into his own personal accounts after promising to buy more than $100 million worth of hotels in Midwestern college towns. But McDonald never acquired the hotel portfolio and instead allegedly spent the investors’ funds on dental work, restitution for a previous fraud conviction and a home in Tampa, Fla.. He faces a maximum of 60 years in prison if convicted, plus millions of dollars in fines. TRD

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