The Real Deal Miami

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

December 02, 2010 01:20PM

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