The former owner of a low income housing firm in Chattanooga was sentenced on Thursday to serve 33 months in federal prison after pleading guilty to fraud charges.
Matthew John Crupi, who raised $5 million for the Urban Investment and Development (UID) firm, appeared before Judge Curtis Collier.
He has until Jan. 11 to report to prison on the wire fraud conviction.
Prosecutors said the real estate developer promised investors a return of up to 20 percent.
The indictment says after the business began losing money Crupi was faced with continuing payments to investors. It says he began to pay the interest to early investors out of money received from new investors.
It says Crupi induced his former pastor who had performed his marriage to come from South Carolina to look over property the firm allegedly owned and was planning to develop. The Presbyterian minister wired $89,000 from South Carolina believing it was to be used to develop the property, it was stated.
Prosecutors said Crupi did not actually own the four pieces of property, but he prepared fraudulent deeds of trust that were shown to the minister.
He was ordered to make restitution to several investors, including over $1 million to one couple.
Prosecutor Perry Piper said the original amount owed was $2,517,000. He said a payment of $120,000 to Steve Arnsdorff got the amount under $2.5 million and placed him at a lesser sentencing range.
The father of five - with another on the way - was given the minimum on the range of 33-41 months.
Judge Collier told Crupi he was fortunate that his wife had stuck with him. She was in the courtroom.
Crupi, a Boston native, said he has been working as a painting contractor in the Atlanta area.
He said he was most remorseful about deceiving the minister who "led me to the Lord and mentored me for 20 years."
Crupi said, when the recession came, he should have been frank with the investors, but he said he kept believing that his fortunes would turn around.