RALEIGH — A Wilmington man has pleaded guilty to committing more than $3.7 million in mail and wire fraud in federal court.
Daniel P. Ostby, 41, pleaded guilty to wire fraud and money laundering in U.S. District Court on Dec. 7, 2011.
According to U.S. Attorney Thomas G. Walker, U.S. District Judge Terrence W. Boyle sentenced Ostby to six years in prison, five years supervised release, ordered to pay a $200 special assessment and around $1.2 million in restitution.
In October 2011 Ostby and his alleged co-defendant, Curt Vanderzee, formed DC Development of North Carolina, LLC, that the two used to develop a scheme to “flip” houses for profit.
Ostby and Vanderzee formed more than 17 businesses with family members and acquaintances who had no source of income but obtained credit cards and credit lines with various banks for money.
From 2007 to the beginning of 2009, the two men used their business credit cards to charge more than $1 million for personal salaries, expenses and payments.
