Alleged phony hotel investor arrested

Hotel investor Robert McDonald, president of RAI Hotel Acquisition, was arrested yesterday and charged with securities fraud, wire fraud and mail fraud for 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, Florida. He faces a maximum of 60 years in prison if convicted, plus millions of dollars in fines. TRD