Developers Sentenced in NJ Investment Fraud Scheme

Two real estate developers are headed to federal prison for their roles in a scheme to embezzle funds from investors in commercial real estate projects in New Jersey.

Sixty-year-old Allen Weiss of Marlboro received a 27-month sentence Tuesday, while 55-year-old Toms River resident David Moulakis got a one-year term. Both had previously pleaded guilty to complaints charging them with conspiracy to commit wire fraud.

Prosecutors say the men conspired with others between January 2009 and February 2010 to embezzle nearly $1 million in investors' funds that were supposed to be used to develop projects in Holmdel, Hazlet and Neptune.

Weiss also was ordered to serve five years supervised release once he's freed from prison, while Moulakis got three years supervised release. They also must pay $1,348,808 in total restitution.

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