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Gary Matthews is going to jail

by: 1 OP
~ 1 week, 6 days ago

Did you all see the news?
Former Pere Marquette developers sentenced to prison, ordered to pay many millions in restitution
By Liz Lape and Howard Packowitz

Two former developers of the Pere Marquette Hotel, convicted of fraud and money laundering, have been sentenced to federal prison for crimes in which Peoria city officials say all city taxpayers were among the victims.

U.S. District Judge Sara Darrow sentenced Gary Matthews, who is 81, to three years and four months in prison. Monte Brannan, who is 71, was given two-years in prison. Matthews was ordered to pay almost $8.2 million restitution and Brannan was ordered to pay almost $4.8 million.

The two men were convicted of transferring an estimated $13.8 million from hotel revenues and further 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 a witness. Darrow denied almost all of the motions.

The defense also brought up concerns over the health and ages of the two men, asking for home confinement sentences instead of prison time.

The judge denied this as well, and said she believed that their health can be adequately cared for in prison.

In a statement to the judge, a tearful 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 explained he has had a long career of "unwavering dedication to the people and the city."

Darrow said both defendants lied and stole, even though they said they were just trying to do good by the city and the hotel.

"Motivations matter...at the end of the day, I really think self-preservation and hubris were the guiding motives for you," Darrow said to Matthews during the sentencing.

After the trial last November, the City of Peoria released a statement saying the jury recognized taxpayers, the city, senior lenders and the Marriott Corporation were victims of Matthews' and Brannan's crimes.

"With new owners in place, the city is working to ensure that the future of the Hotel Pere Marquette is sustainable and economically successful," the city statement said.

Matthews and Brannan don't know yet where they will serve their sentences, but they can request a prison close to their families. They must report to prison by May 20 at 2 p.m.

Maybe instead of prison, they could lock them up in those unfinished retail spaces they built adjacent to the hotel on Monroe....