An investment advisor in Lexington, Ky., has been sentenced to 10 years in prison for a $2 million real estate investment scam, the U.S. Attorney's Office for the Eastern District of Kentucky announced.
Douglas Hawkins, who is also a former attorney, was sentenced by U.S. District Judge Karen Caldwell on Tuesday for investment advisor fraud, securities fraud and two counts of mail fraud, the U.S. Attorney's Office said. Hawkins was also ordered to pay $1,588,048.50 in restitution. He was found guilty of the crimes by a jury in February. He was suspended by the Kentucky Bar Association after the conviction, according to the Lexington Herald Leader.
Hawkins encouraged his clients to invest more than $2 million in properties in Jackson, Miss., while concealing the fact that "many were uninhabitable, had burdensome rent collection, and were often subject to theft and vandalism," the U.S. Attorney's Office said in a press release.
"He also failed to inform his clients that their investment money would be used for purposes other than their properties, including paying other investors and buying a Harley-Davidson for an employee," the press release said.
Under federal law, Hawkins must serve 85% of his prison sentences, the press release said. Upon his release from prison, Hawkins will be under the supervision of the U.S. Probation Office for three years.