DETROIT – United State Attorney General Barbara McQuade announced a 51-year-old Troy man pleaded guilty on Thursday to bank fraud in connection with an investment fraud scheme in which more than a dozen victims were defrauded of more than $1 million.
Federal agents and the Attorney General say Jeffrey Egan operated a company called Real Estate Capital Group between 2004 and 2008.
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He promised investors an 11 percent annual interest rate for a period of two years and promised that their investments were fully secured with real estate.
Egan convinced investors by giving them written mortgages which he said RECG bought with their funds.
The truth is many of the mortgages were phony. He had no ownership rights.
He ultimately failed to pay the promised interest rates at the end of their term.
With the plea, Eagan agreed to pay restitution of $7,934,727 to defrauded investors and other investors who lost money by working with him.
He faces a maximum of 30 years in prison.
Egan is scheduled to appear in court Sept. 6.