PROVIDENCE – Monique N. Brady pleaded guilty to charges related to a $10 million Ponzi scheme fraud in U.S. District Court in Providence Thursday, according to the U.S. Department of Justice.
Brady pleaded guilty to wire fraud, aggravated identity theft and obstructing an Internal Revenue Service investigation.
Brady was the owner and operator of MNB LLC, an East Greenwich business that specialized in preserving the condition of foreclosed properties and homes for resale. Brady solicited family, friends and business associates, fraudulently convincing them to invest in projects, claiming she had been awarded contracts for large-scale Freddie Mac rehabilitation projects. The work she actually performed for the projects that she was contracted for included mowing grass, changing locks, winterizing properties, boiler or electrical inspections, and snow removal.
Brady produced fraudulent emails, even impersonating an actual employee of a national property rehabilitation company, to convince investors that her projects were real. Of the 171 properties she solicited and received funds from investors for, 98 were properties that had not hired MNB for services.
Brady also misrepresented the work that she had done on properties that she was hired to provide services to, with a majority of projects paying less than $1,000 per contract to her company. Brady then reported project costs of between $20,000 and $80,000 for subcontractor work to those who were deceived.
Brady’ scheme was said to have cost 22 individuals approximately $4.8 million.
She is scheduled to be sentenced in October.