MIAMI (WSVN) - Craig Sherman, an 80-year-old retired lawyer and former town attorney for Bay Harbor Islands, pleaded guilty to two counts of federal wire fraud charges.
Sherman’s plea on Monday sheds light on an elaborate investment scheme that defrauded friends and clients of nearly $7 million over a span of seven years.
Sherman, who also maintained a legal practice in Boca Raton, orchestrated a fraudulent investment scheme from 2013 to 2020, the FBI said in a news release.
In his role as the town attorney for Bay Harbor Islands, he used his position to solicit investments from acquaintances and clients for purported real estate ventures within the town. Under the appearance of financing construction projects, Sherman claimed that investors would receive annual interest rates of 6% to 8% for their loans, with the principal amount to be repaid upon project completion.
However, federal authorities revealed that instead of funneling the funds into legitimate construction endeavors, Sherman diverted the money to fund his personal expenses and maintain his law firm’s operations. He further used investment funds from some investors to make payments to others, concealing the fraudulent nature of the scheme.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI’s Miami Field Office jointly announced Sherman’s guilty plea. The FBI’s Miami, West Palm Beach Resident Agency conducted a comprehensive investigation into the case, which was then prosecuted by Assistant U.S. Attorney Laurence M. Bardfeld.
Sherman now faces the prospect of a prison sentence of up to 20 years for each count of federal wire fraud. Additionally, he will be mandated to pay restitution to the victims he defrauded.
The exact sentencing hearing will be determined at a later date.
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