Developer sentenced to 3 years for blowing investors’ money on himself

Samuel Klein of Greenwich defrauded friends, associates of $1.5M

Tri-State /
May.May 06, 2022 12:00 PM
Map of CT. Gavel. Scales of Justice (iStock, Illustration by Kevin Cifuentes for The Real Deal)

(iStock, Illustration by Kevin Cifuentes for The Real Deal)

A Connecticut developer was sentenced to three years in prison after pleading guilty to swindling investors.

Samuel Klein of Greenwich defrauded investors out of $1.5 million, prosecutors said. The 66-year-old will also have three years of supervised release after serving his time and has to pay restitution.

Klein collected tens to hundreds of thousands of dollars in investments from friends and associates for real estate deals, the Hartford Courant reported, but spent the money on himself and his family.

Records produced by prosecutors showed Klein spent $60,000 on chartered flights and $194,000 on getaways to the Amangani Resort in Jackson, Wyoming. Prosecutors said Klein “prioritized his own lavish lifestyle.”

Klein’s attorneys claimed the developer’s business was crippled by the 2008 financial crisis, which ravaged his two companies, Fairchild Properties and Fairchild Realty Group. The two firms were said to be worth millions of dollars and had a combined 3,200 employees. While Klein is linked to two companies with those names, The Real Deal could not independently confirm their financial history and employment numbers.

Klein reportedly developed a number of projects, including the Payton Lane Nursing Home in the Hamptons, the Danbury Hilton in Danbury and the Sofitel Philadelphia at Rittenhouse Square.

But Klein controlled other entities as well, according to the Justice Department. In 2018, he falsely told an investor that funds would go towards distressed debt, the agency said. The victim ultimately cut Klein a check for $200,000 and later put in another $50,000.

From 2016 to 2019, Klein defrauded three more investors out of more than $1.2 million by making false statements and representations, prosecutors said. Last year, Klein pleaded guilty to interstate transportation of property taken by fraud, as well as money laundering.

Klein has been freed on bond, but was taken back into custody after Tuesday’s sentencing.

[Hartford Courant] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    REBNY president James Whelan (REBNY, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
    Construction pipeline soars 69%: REBNY
    Construction pipeline soars 69%: REBNY
    3 New York Avenue in Jersey City, NJ (Google Maps, iStock)
    Developers land $97M for Jersey City multifamily
    Developers land $97M for Jersey City multifamily
    Vorea Principal's Peter Papamichael with 10-04 Borden Ave (Vorea Group, iStock)
    Skydiver lands first NYC location in Long Island City
    Skydiver lands first NYC location in Long Island City
    Rob Speyer on the long arc of megadevelopment, New York’s renaissance and proptech bets
    Rob Speyer on the long arc of megadevelopment, New York’s renaissance and proptech bets
    Rob Speyer on the long arc of megadevelopment, New York’s renaissance and proptech bets
    Hudson Meridian Construction Group founder Bill Cote and a rendering of the Science Park Apartments planned at 201 Munson in New Haven (Hudson Meridian Construction Group)
    Breakthrough for beleaguered New Haven project
    Breakthrough for beleaguered New Haven project
    Silverback's Josh Schuster and Hopson's Chu Mang Yee with rendering of the project at 131-141 East 47th Street (LinkedIn, Getty, Ismael Leyva Architects)
    Hopson nabs $156M for Midtown tower, agrees to part ways with Silverback
    Hopson nabs $156M for Midtown tower, agrees to part ways with Silverback
    Darien First Selectman Monica McNally and Great Island in Darien, Connecticut (Darien Republicans, Google Maps)
    Fairfield County town nears private island purchase for over $100M
    Fairfield County town nears private island purchase for over $100M
    Adam Neumann with 515 West Avenue (Wikipedia, Realtor, iStock)
    No buzz, but Adam Neumann will take the $293M
    No buzz, but Adam Neumann will take the $293M
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...