UPDATED 5:20 P.M.
PEORIA, Ill. – The former developers of the Hotel Pere Marquette have been found guilty of fraud in a federal court.
81-year-old Gary Matthews of East Peoria was found guilty on five counts of mail fraud and 12 of 13 counts of money laundering. 70-year-old Monte Brannan of Peoria was found guilty on all 18 counts. Brannan had also previously pled guilty to three counts of bankruptcy fraud in a separate personal bankruptcy case.
Matthews and Brannan were indicted in December of 2020 on charges that allege both took $750,000 from the Pere Marquette after it went into foreclosure. A loan to the hotel also left the city on the hook for $7 million after the foreclosure.
The government presented evidence the pair orchestrated a scheme to defraud the City of Peoria, Core Construction, Indure, and other lenders and creditors. The government testified that Matthews and Brannan disguised they were taking money from hotel operations and claimed it was being used to fund the hotel’s mortgage and real estate taxes.
Matthews and Brannan are scheduled to be sentenced on March 27th, and face up to 20 years in prison, five years of supervised released, and fines of up to $250,000.
The city of Peoria released a statement after the verdict:
“Today former developers of the historic Hotel Pere Marquette were found guilty of five counts of fraud. Gary Matthews was found guilty of four counts of fraud, including mail fraud. Monte Brannan was found guilty of money laundering and mail fraud. The jury recognized that the taxpayers, the City of Peoria, senior lenders, and the Marriott Corporation were victims of Matthews’ and Brannan’s crimes.
The Hotel Pere Marquette is an important landmark of our community, a critical necessity for downtown amenities, and an economic driver to attract conferences, events, and visitors to Peoria. Downtown development, as evidenced in our latest strategic plan, continues to be an ongoing focus. With new owners in place, the City is working to ensure that the future of the Hotel Pere Marquette is sustainable and economically successful.”
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PEORIA, Ill. – The former developers of the Hotel Pere Marquette have been found guilty of fraud in a federal court.
According to a statement from the city of Peoria, the guilty verdict came down Friday against Gary Matthews and Monte Brannan.
Matthews was found guilty on four counts of fraud, including mail fraud. Brannan was found guilty on counts of money laundering and mail fraud.
The pair could receive sentences of two decades in prison.
Matthews and Brannan were indicted in December of 2020 on charges that allege both took $750,000 from the Pere Marquette after it went into foreclosure. A loan to the hotel also left the city on the hook for $7 million after the foreclosure.
The city’s full statement says:
“Today former developers of the historic Hotel Pere Marquette were found guilty of five counts of fraud. Gary Matthews was found guilty of four counts of fraud, including mail fraud. Monte Brannan was found guilty of money laundering and mail fraud. The jury recognized that the taxpayers, the City of Peoria, senior lenders, and the Marriott Corporation were victims of Matthews’ and Brannan’s crimes.
The Hotel Pere Marquette is an important landmark of our community, a critical necessity for downtown amenities, and an economic driver to attract conferences, events, and visitors to Peoria. Downtown development, as evidenced in our latest strategic plan, continues to be an ongoing focus. With new owners in place, the City is working to ensure that the future of the Hotel Pere Marquette is sustainable and economically successful.”
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