Queen City Developer To Go To Federal Prison For Real Estate Scam
CONCORD, N.H. –Christian W. Silvestri, 38, of Londonderry, New Hampshire was sentenced In United States District Court for the District of New Hampshire to eighteen months in federal prison for defrauding investors in a residential real estate development project.
Silvestri, who previously pled guilty to wire fraud charges, was a real estate developer involved in the development of luxury apartments in Manchester, N.H., and other Granite State real estate projects.
In July 2005, Silvestri, falsely induced four residents of New Hampshire to give him $140,000 to purchase and develop certain residential real estate in Newton, Massachusetts. Silvestri admitted that he never purchased or developed the Newton property. Instead, he used all or almost all of the investors’ money for purposes unrelated to any real estate development in Newton. He admitted using the investors’ funds to: (i) reinstate a foreclosed mortgage on his vacation home in Florida; (ii) pay a civil judgment that was about to result in a sheriff’s sale of Silvestri’s primary residence; (iii) pay an overdue American Express bill of $14,835; and (iv) satisfy delinquent rent on Manchester property from which he would soon be evicted.
He also admitted that he repeatedly misled the investors to believe that their money was safe and being used for its intended purpose. Even after the Newton property was developed by someone else, he misled investors to believe that he had developed the property and that he controlled the proceeds of the sale. The investors had never been paid their promised profit by Silvestri or returned any portion of their investments and he sought to extinguish his debts to them by seeking bankruptcy protection.
Silvestri made false statements during his bankruptcy proceeding to avoid detection or responsibility for his real estate fraud. In addition to the eighteen month term of incarceration, Silvestri was ordered to serve three years of supervised release upon his release from prison and to make full restitution to his victims, with interest. While on supervised release, Silvestri will be required to abide by certain conditions, including complying with a restitution payment plan. If Silvestri violates the conditions of his supervised release, he could be returned to prison.Silvestri’s prosecution arose from an investigation by the Bedford (N.H.) Field Office of the Federal Bureau of Investigation with assistance of the Manchester Office of the United States Bankruptcy Trustee. The case was prosecuted by Assistant United States Attorney Bill Morse.