By Associated Press • 

Ex-adviser gets 3 years for Albany scheme

ALBANY — A judge has imposed a three-year sentence on a former investment adviser from Albany who was convicted of bilking people in or near retirement of $3.3 million for a real estate scheme.

Prosecutors alleged that Randy Gray encouraged 16 victims to take money out of Individual Retirement Accounts and invest in housing — which was never built.

Nearly all the money actually went to pay off the debts of the contractor, the prosecution said.

The Albany Democrat-Herald reports that Gray was convicted in February of theft. Judge Thomas McHill held handed down the sentence Wednesday, and some victims spoke of losing their life savings or returning to work.

“My husband is 78 years old. He is still working. ... Shame on you, really,” Chu Nicholson said.

Gray's lawyer, James Leuenberger, said there would be an appeal.

“We don't concede a crime was committed,” he said. “The idea that a business deal gone bad is a crime is very, very bad precedent.”

He said Gray had repaid a total of $166,000 to some victims and disputed the effect of the losses.

“It wouldn't have a huge impact on the way they lived their lives,” Leuenberger said.

One co-defendant, Scott Whitney, was sentenced to three years after pleading guilty to racketeering and selling an unregistered security.

Another co-defendant, contractor Derek Dunmyer, has pleaded guilty to racketeering but has not been sentenced. The plea deal calls for the charge to be treated as a misdemeanor.


Information from: Albany Democrat-Herald,

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