Former Pacific Palisades resident Robert Hans Schenk was sentenced on Sept. 6 to four years in prison for wire fraud, United States Attorney Melinda Haag announced in an official release.
Schenk pleaded guilty on Sept. 2, 2011, to one count of conspiracy to commit wire fraud and eight counts of wire fraud. Schenk admitted to fraudulently inducing people to invest millions of dollars in his businesses, Griffin Digital Services and Smartworld Solutions. He then used many of those funds to pay his family’s personal expenses.
According to Haag, in addition to the investment fraud scheme, Schenk also admitted to using the identity of one of the investors without his knowledge and fraudulently obtained a $1.7 million mortgage refinancing loan in that investor’s name.
The mortgage refinancing loan was used for the home he and his family lived in in Pacific Palisades.
Schenk, 52, was arrested on Jan. 4, 2011, and has been in federal custody ever since. He was indicted by a federal grand jury on Jan. 11, 2011. He was charged with one count of conspiracy to commit wire fraud, eight counts of wire fraud, and two counts of aggravated identity theft.
Judge Susan Illston also sentenced Schenk to three years of supervised release and ordered him to pay a total of approximately $4.5 million in restitution to various individual victims and to the mortgage lender that suffered a loss with respect to the $1.7 million mortgage refinancing loan.