An Ulster County real estate developer plead guilty to conspiring to defraud lenders and making false statements in connection with his development of Vineyard Commons, a luxury residential complex in Highland.

According to Michael Barnett’s admission in court, Barnett looked for kickbacks and investments from subcontracts and vendors on the Vineyard Commons project so he could take from the projects line of credit. Barnett met with two executives of a vendor that provided carpentry and lumber supplies and arranged a kickback deal in exchange for company to work on the Vineyard Commons and other developing projects. To raise funds for the kickbacks, the price of labor and supplies was increased by $865,000

Barnett also used subcontractors and vendors on the Vineyard Commons project to provide materials and labor to build a pool at his personal home. He also submitted false invoices to the construction lender in order to illegally enrich himself by drawing down the loan.

Barnett faces up to five years in prison, a fine of up to $250,000 or twice the gross loss or gain from the offense, an order of $1,334,620 in restitution, and an order to forfeit $200,000.

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