Thursday, December 2, 2010

President of RAI Hotel Acquisition, Inc., charged with fraud

(Hospitality Business News)  NEW YORK December 2 2010 - The President of RAI Hotel Acquisition, Inc., ("RAI, Inc."), was arrested and charged with securities fraud, wire fraud, and mail fraud in connection with a $1.5 million scheme in which Robert McDonald falsely told an investor that the investor’s funds would be used towards the purchase of more than $100 million worth of hotels. Instead, McDonald spent the investor’s funds on, among other things, a variety of personal expenses. McDonald was arrested Wednesday morning in Brooklyn, and appeared before a U.S. Magistrate in Manhattan federal court.

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