A Rhode Island woman was arrested on allegations that she ran a Ponzi scheme that raised more than $10 million from investors who thought they would receive half of the purported profits from the renovation and rehabilitation of foreclosed homes. Monique N. Brady, 44, was arrested and charged with a single count of wire fraud, a count which carries a maximum twenty-year prison sentence. The criminal charges come nearly a year after multiple investors sued Brady for the return of their money, including one investor who claimed that Brady “approached him about a new business she was starting to help support her children, including one with special needs.”
Brady formed MNB LLC (“MNB”) in October 2005. Brady told potential investors that MNB often contracted with private and government entities, including Freddie Mac, to perform large-scale rehabilitation projects on foreclosed houses throughout Rhode Island. Those investors were told that they could expect to receive 50% of the expected profits from these projects. In total, Brady raised more than $10 million from at least 32 investors, including Brady’s step-brother, the former nanny for her children, and multiple elderly victims who entrusted most or all of their life savings to Brady.
According to prosecutors, Brady’s claims of realizing significant profits from performing large-scale renovations were simply false. Instead, the work that MNB actually performed on some houses allegedly amounted to nothing more than menial tasks to preserve the value of those houses and prepare for an eventual sale such as snow blowing, electrical and boiler inspections, lawn mowing, and changing locks. boiler inspections. Far from bringing in significant revenues, the complaint alleges that most of those projects were for relatively small dollar amounts ranging from $25 to a few hundred dollars. Despite the menial nature of the work, Brady solicited investors to contribute large sums towards the purported projects - sometimes multiple investors for the same project. For example, the Complaint recaps the following instances of Brady’s solicitation of significant investments for projects that yielded far smaller revenues:
Two investors for the 144 Scappa Flow Road Project in Charlestown, RI. Brady received $20 in income for the project and $120,006 in investments.
Five investors for the 20 Arlee Road Project in Warwick, RI. Brady received $35 in income for the project and $47,925 in investments.
In other instances, the Complaint alleges that Brady simply solicited investments for projects that did not exist.
The criminal complaint is below: