Title Plus Title Services owner pleads guilty to wire fraud
A Troy-based commercial real estate broker and investor pleaded guilty in federal court Wednesday for devising and carrying out a scheme to defraud investors in order to fuel his gambling habit with the Michigan Lottery.
Shelby Township resident Viktor Gjonaj, 43, entered his plea to one count of wire fraud before U.S. District Judge Linda Parker.
According to a news release from the U.S. Attorney’s Office - Eastern District of Michigan, Gjonaj believed he had a guaranteed way to win huge jackpots in the Michigan Lottery Daily 3 and Daily 4 games. To do so would take a substantial increase in the frequency that he played and the amount spent. But his losses began to add up in 2017 to a point where he couldn’t afford to lose any more money. That’s when he concocted a plan to trick people into giving him money by falsely promising he’d use it to invest in lucrative real estate deals.
The news release also stated that Gjonaj created a fake title company, Title Plus Title Services to give victim-investors a sense of legitimacy, and had victim-investors wire transfer money into its account. He described the fraudulent real estate deals in great detail and encouraged victim-investors to continue giving him money by disbursing payments to them, which he falsely claimed were profits they had earned. By early 2019, Gjonaj was betting more than $1 million a week on Michigan Lottery games, using fraudulently obtained money.
In August 2019, his scheme unraveled, resulting in more than $19 million in losses to victims.
As part of a plea agreement, Gjonaj acknowledged that “his scheme to defraud and to obtain money by means of false and fraudulent pretenses and representations victimized numerous individuals and that their losses will be included as relevant conduct in calculating his sentencing guidelines, and by the court in ordering restitution,” as stated in the news release.
“Gjonaj used his previous business successes and relationships with victim investors to lure them into his scheme with false promises,” Acting United States Attorney Saima Mohsin stated in the news release. “White collar criminals who use lies and deceit to steal other people’s money will be held accountable for their actions.”
Added Timothy Waters, special agent in charge of the FBI in Michigan: “Viktor Gjonaj operated a multi-year scheme in which he played the lottery with money he was trusted to invest. Today’s guilty plea is the first step in getting justice for victims who have suffered both financially and emotionally.”
Parker is scheduled to sentence Gjonaj on June 15 at 2 p.m.