The president of a D.C. property management company has been sentenced to 10 years in prison for bilking clients, mortgage lenders and the government out of more than $2.8 million over the course of eight years, federal prosecutors said Wednesday.
Bryan W. Talbott, 49, will spend 10 years in prison, plus another five years on probation. He'll also be required to pay millions of dollars in restitution fees.
Federal prosecutors say Talbott and his business partner, Chester Ransom Jr., operated a property management company known alternately as Esquire LLC, Federal City Mowbray, and Private Properties Inc. that contracted with various property owners in the D.C. area. Under those contracts, the two were required to collect rent from tenants, pay bills on the properties and send the remainder of the rent checks to property owners. Instead, Talbott and Ransom often used utility bill funds for their own purposes, lying about having made bill payments and sending fraudulent bank statements to clients to cover up the scheme, prosecutors said.
The men defrauded at least 54 clients out of more than $1.2 million in the scheme, prosecutors said.
Talbott and Ransom also committed mortgage fraud on a house they owned in Northwest Washington, netting hundreds of thousands of dollars in loans after submitting forged lien releases, prosecutors said. And in 2006, both men filed false tax returns for both local and federal taxes, prosecutors said. Talbott received a tax refund of more than $97,000 in federal and local taxes that year after falsifying his income tax withholdings, prosecutors said.
Talbott and Ransom pleaded guilty in January to charges of conspiracy to commit bank fraud, conspiracy to commit mail fraud and conspiracy to defraud the government.
Ransom, 45, who was Esquire's vice president, was sentenced to six years in prison in June. Talbott's sentencing was delayed after a judge issued a warrant alleging that he had violated the terms of his release, according to federal prosecutors.