By Associated Press - Friday, January 17, 2014

RALEIGH, N.C. (AP) - A former Raleigh real estate developer is trading a $1.5 million mansion for a federal prison cell after being sentenced to 27 years behind bars for defrauding investors of millions of dollars.

The News & Observer of Raleigh reported (https://bit.ly/1hxQpIK) 52-year-old James Webb pleaded guilty 10 months ago to federal bank and wire fraud. A U.S. District Court judge sentenced him Thursday to prison and ordered him to pay almost $12 million to his victims.

Prosecutors say that between 2002 and 2006, Webb told investors he would use their money to buy, renovate and resell properties to first-time homebuyers in North Carolina, Virginia and other states.

Instead, prosecutors say he used investors’ money to fund a lavish lifestyle, including the purchase of an 11,000-square-foot brick mansion.

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Information from: The News & Observer, https://www.newsobserver.com

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