A Brookfield resident pleaded guilty to aiding a scheme to defraud an investor.
Paul Mayotte, 69, was chief financial officer of Girouard Associates Inc. and RRG Investments L.L.C., both owned by real estate developer Richard Girouard.
According to federal prosecutors, in November 2002 RRG Investments purchased Fleet Bank”™s share of an entity known as LINC Receivables, which owned leases and installment sales contracts that produced a stream of revenue.
On behalf of RRG Investments, Mayotte negotiated an agreement with an investor who agreed to loan RRG Investments $2.5 million in return for nearly a third of the net cash flows received after the purchase of LINC Receivables, and after RRG Investments and the investor had recouped their initial investment of $4.2 million and $2.5 million, respectively.
In pleading guilty, Mayotte admitted that he and Richard Girouard agreed to withhold distributions from the investor indefinitely on the pretense of legal and tax issues, instead keeping the money. Girouard pleaded guilty Nov. 24 to his role in the scheme.
Mayotte must make full restitution to the victim, and faces up to five years in prison when his scheduled sentencing arrives Feb. 25.
