An Edmond man was sentenced Friday to a year and a day in prison for defrauding investors in his debt collection business.
Gregory Scott Conrady, 52, pleaded guilty in August to charges of money laundering and wire fraud in federal court in Oklahoma City.
Conrady secured more than $10 million in investments for Coltate Capital LLC, which was formed to purchase portfolios of distressed debt for pennies on the dollar, according to prosecutors. He used debt brokers to locate portfolios for purchase.
Conrady defrauded investors by claiming broker's fees substantially higher than he actually negotiated between November 2007 and April 2010, prosecutors said. The excess funds were diverted to Conrady's personal companies.
U.S. District Judge Timothy D. DeGuisti sentenced Conrady to 12 months and a day in prison. He also ordered him to pay $919,150.74 in restitution to two investors and perform 104 hours of community service after his release.