David Shelofsky, a 53-year-old West Linn man, was sentenced to 70 months in federal prison and three years of supervised release on Wednesday Nov. 17. This court judgement is for scamming multiple people out of millions of dollars in his fraud schemes. A press release from the U.S. Attorney's Office for the District of Oregon announced the sentencing.
Shelofksy was initially charged with wire fraud and money laundering June 2020. Five months later, a federal grand jury in Portland returned a 17-count indictment charging him with wire fraud and money laundering. He pleaded guilty to the charges in August of this year after previously pleading not guilty in November 2020.
According to the U.S. attorney's office, Shelofksy's schemes centered on real estate, hemp seed and precious metal investments.
Shelofsky, who formerly served as a volunteer strength and conditioning coach for the West Linn High School football team, told potential investors he had successful real estate developments in West Linn and Bend as well as a profitable hemp seed cultivation business.
He told other investors and lenders of a precious metal mining operation, while making limited efforts to actually extract metals.
"Shelofsky made repeated and deliberate misrepresentations and false promises about the status and success of his various ventures, the purported returns investors would receive, and the existence of collateral pieces of real estate supposedly backing investments," the U.S. attorney's office stated.
The press release also notes Shelofksy's employment of others like a lawyer and assistant who created legal documents and opened bank accounts in the name of several limited liability corporations to make his ventures seem more credible.
"Shelofsky used investor funds for personal expenses and to support his own high standard of living," the press release stated. "Dozens of individual investors and lenders lost millions of dollars as a result of Shelofsky's schemes."
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