Austin man scams millions from hotel investors

AUSTIN, Texas — An Austin man who ran a six-year hotel investment fraud scheme that resulted in property losses of more than $5 million will have to repay those funds and spend 70 months in jail, according to the Ministry of Justice.

Jason Michael Schubert, 47, owes $5,052,366.92 for his misappropriation of funds from hotel investors. Court documents show he ran the program from 2012 to June 2018, using his “Rich in Five” seminars to overtax attendees and select investors for his scam. The seminars were lessons on how to make money from hotel property investments.

“This defendant engaged in a complex fraud involving commercial real estate, transferring funds between numerous bank accounts and making numerous false promises to well-meaning investors,” said U.S. Attorney Ashley C. Hoff. “Like so many other fraudulent schemes, this scheme was designed to line the defendant’s pockets with other people’s hard-earned money. Now that his scheme has been busted, we are confident that the prosecution and conviction of this accused will bring a measure of justice to his victims.

Schubert solicited money from investors for pre-existing hotels that he felt needed renovations, given their former condition. He told investors they would make a profit with little or no involvement. According to the DOJ, Schubert had no experience in hotel management, but somehow managed several hotel properties.

Court documents say Schubert used investor funds to “pay himself a significant ‘management fee’.” When he dried up all the funds of investors who subjected these hotels to seizure. Investors have lost any chance of a return on these investments.

“This is a clear case of a criminal taking advantage of investors by embezzling their savings for his own financial gain,” said FBI Special Agent in Charge Oliver E. Rich. “The FBI will vigorously pursue those who commit these types of fraudulent schemes to hold them accountable for their actions.”

Schubert pleaded guilty to one count of wire fraud and one count of participating in a monetary transaction involving criminal property on December 22, 2020.

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