'Property Wars' star awaiting sentencing after guilty plea of stealing identities

Posted at 6:15 AM, Oct 27, 2017
and last updated 2017-10-27 09:29:03-04

A reality TV star who pled guilty to stealing identities is now awaiting sentencing.

Scott Menaged starred on 'Property Wars', a reality TV show that followed a group of men who bid on foreclosed homes.

Last week, Menaged pled guilty to conspiracy to commit bank fraud, aggravated identity theft and money laundering conspiracy.

A joint investigation between the Internal Revenue Service and the Department of Homeland Security led to Menaged's arrest in May.

ABC15 exclusively watched federal agents collect boxes of evidence at Menaged's store called Furniture King.

Prosecutors say Menaged and three of his employees established lines of credit by stealing peoples' identities. They would then make fake purchases and pocket the cash.

Investigators say Menaged also embezzled $34 million from his hard-money lender, DenSco Investment Corporation. Menaged and others would take loans for properties they didn't own, according to court paperwork.

Of the 2,712 loans made by DenSco, investigators say only 96 involved actual property transactions. 

In Menaged's plea agreement, he agrees to pay of $2.1 million in restitution -- that amount could be much higher if Menaged has to pay back Densco the $34 million dollars. 

Menaged's sentencing is set for December.