Developer allegedly stole millions
Fri November 16, 2012
Former Kenwood Towne Place developer indicted
The man responsible for the unfinished Kenwood Towne Place project is under indictment. Former Managing Director Matt Daniels is charged with 25 conspiracy and fraud counts.
The indictment alleges Daniels borrowed millions from a bank to develop Kenwood Towne Place but instead used the money for personal gain.
FBI Special Agent Ed Hanko says the investigation took three years.
"To prove the fraud, agents from the FBI, IRS and deputies from the Hamilton County Sheriff's office had to go through every single dollar to determine if the spending of it was a legitimate use or if it was fraudulent and that is why an investigation like this takes so long," he says.
The indictment alleges Daniels used some of the stolen money to purchase expensive jewelry and possibly a boat.
"The investigation is ongoing even though he's been indicted, so I don't want to say we know exactly where all the money went. We have enough information to understand that we believe he was committing bank fraud and, with others, conspiracy," says Assistant United States Attorney Kenneth Parker.
Earlier this year, a grand jury also indicted the former developer's chief financial officer for conspiracy to commit bank fraud.
Kenwood Towne Place was sold to a new owner this year.