UPDATED: 4/16 7:09 A.M.
PEORIA, Ill. – Two former developers of the Pere Marquette Hotel in downtown Peoria, convicted of fraud and money laundering, have now been sentenced to federal prison time for crimes Peoria officials say affected the city’s taxpayers.
U.S. District Judge Sara Darrow sentenced 81-year-old Gary Matthews on Monday to three years and four months in prison. 71-year-old Monte Brannan was sentenced to two-years in prison.
According to 25 News, Matthews was ordered to pay almost $8.2 million restitution and Brannan must pay almost $4.8 million.
Both men were convicted of transferring roughly $13.8 million from hotel revenues and diverting at least $1.6 million to themselves for their businesses.
“The pair had conspired to disguise the fact that they were taking money from the hotel complex operations by claiming they were using the funds to pay for the mortgage and real estate taxes for the hotel. In the course of that scheme, the two illegally transferred funds to themselves in an effort to disguise the source and ownership of the money they had taken,” the U.S. Attorney’s Office said in a news release after the two were convicted last November.
During the hearing, the defense made several objections, including that the jury was misled, there wasn’t sufficient evidence, and that the jury was exposed to bias from one witness. The judge denied almost all of the motions.
The defense also brought up concerns over the health and ages of Matthews and Brannan, asking for home confinement instead of prison time.
The judge denied those concerns as well, saying she believed that the pair’s health could be adequately cared for in prison.
In a statement to the judge, Brannan said he maintains his innocence, but respects the jury’s decision.
“I’ll be forever regretful to all the investors and the city of Peoria,” Brannan said.
In his statement, Matthews said he’s had a long career of “unwavering dedication to the people and the city.”
Matthews and Brannan haven’t been told yet where they will serve their sentences, but they will be allowed to request a prison close to their families. They must report to prison by May 20.
PEORIA, Ill. – A federal judge on Monday has denied a request for a new trial from the former developers of the Pere Marquette in downtown Peoria.
25 News reports the ruling against Gary Matthews and Monte Brannan comes on the same day of sentencing for the pair.
In November, Matthews was found guilty of five counts of mail fraud and 12 of 13 counts of money laundering, while Brannan was found guilty on all 18 counts.
Attorneys for the pair filed for a new trial because the defense claimed the jury was misled regarding expenses related to the hotel, insufficient evidence, and claims the jury was exposed to bias from a witness.
Both could receive sentences of up to 20 years in prison, followed by five years of supervised release, and up to $250,000 in fines.
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