Published: October 20, 2023, 04:40h.
Last updated: October 20, 2023, 04:40h.
A property developer from Cleveland, Ohio, made headlines when he spent $885,000 playing craps and blackjack at the JACK Cleveland Casino. Unfortunately, the money he lost was meant for rebuilding a local market in the city’s Greenville district, adding to the controversy.
According to Cleveland.com, a jury in the federal court found Arthur Fayne, aged 61, guilty of nine counts of wire fraud during the trial on Thursday.
Fayne, who owned Business Development Concepts, was responsible for managing community construction projects in the city. He was chosen by nonprofit Northeast Ohio Neighborhood Health Services (NEON) to oversee the revival of the East Side Market in Greenville. The closure of the market in 2007 had left the neighborhood with limited access to fresh food.
Loss of Over $1 Million
Federal prosecutors revealed that out of the money Fayne took to the casino, $760,000 was intended to pay the general contractor, AM Higley, for the project. They alleged that Fayne concealed invoices received from AM Higley and submitted his own invoices to NEON, falsely claiming that the funds were for paying the general contractor. Over $750,000 of the intended funds were diverted for Fayne’s personal use. Prosecutors also stated that another $126,000 that ended up in the casino’s coffers should have been sent to audio-visual contractor Crescent Digital.
Fayne lost more than $1 million at the JACK Cleveland and another casino during a trip to New Orleans related to the project, as per court filings.
It’s important to note that no public funds were embezzled; the money involved was meant to pay the contractors appointed by NEON.
Fayne’s defense lawyer, Myron Wilson, argued that his client’s actions were a result of poor bookkeeping and mixing funds in personal and business accounts. Wilson emphasized that despite the accounting issues, all contractors were eventually paid what they were owed.
No Hard Feelings
NEON President and CEO Willie Austin, as well as Crescent Digital President Mike Hines, testified that they remained friends with Fayne, according to Cleveland.com. Austin even stated that he continues to work with him.
It is speculated that Fayne’s extensive gambling habit may have influenced the jury’s decision. Watson, one of Fayne’s lawyers, mentioned that some people have moral objections to gambling, making it a more challenging case for the defense. Watson further praised Fayne for his contributions to the community, particularly in underprivileged areas and among children.
“Anytime you don’t agree with a verdict, you still respect the process,” Watson said. “It was clear that it was a highly contested case. Jurors were crying during the verdict, and I think that says a lot about the type of person Mr. Fayne is.”
Fayne rejected a plea deal that would have resulted in a two-year prison sentence. Now, he potentially faces up to six years in prison. Fayne’s legal team intends to appeal the verdict.