AUSTIN, Texas — An Austin man who led a hotel investment fraud scheme for six years that resulted in property losses of over $5 million will have to pay those funds back and spend 70 months in prison, according to the Department of Justice.

Jason Michael Schubert, 47, owes $5,052,366.92 for his misappropriation of hotel investor funds. Court documents show that he ran the scheme from 2012 until June 2018, using his “Rich in Five” seminars to overcharge attendees and pick out investors for his scam. The seminars were lessons on how to make money from hotel property investments.

“This defendant engaged in a complex fraud involving commercial real estate, moving funds among numerous bank accounts, and making many false promises to well-intentioned investors,” said United States Attorney Ashley C. Hoff. “Like so many other fraud schemes, this scheme was designed to line the defendant’s own pockets with other people’s hard-earned money. Now that his scheme has been dismantled, we are confident that the prosecution and sentencing of this defendant will bring a measure of justice to his victims.” 

Schubert solicited money from investors for preexisting hotels that he said needed renovations, given their old state. He claimed to investors that they’d make a profit with little to no involvement. According to DOJ, Schubert had no hotel management experience, but was somehow managing multiple hotel properties.

Court documents indicate that Schubert used investor funds to “pay himself significant ‘management fees.’” When he dried up all the investor funds that subjected those hotels to go into foreclosure. Investors lost any chance on a return of those investments.

“This is a clear case of a criminal taking advantage of investors by misappropriating their life savings for his own financial gain,” said FBI Special Agent in Charge Oliver E. Rich. “The FBI will continue its vigorous pursuit of those who commit these types of fraudulent schemes to hold them accountable for their actions.”

Schubert pleaded guilty to one count of wire fraud and one count of engaging in a monetary transaction involving criminally derived property on Dec. 22, 2020.