RALEIGH — 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.
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.