Nassau County District Attorney Anne T. Donnelly announced that a Idaho man was indicted on grand larceny and other charges for allegedly operating an investment fraud scheme in 2021 and stealing approximately $1.2 million from individuals who believed they were investing in a company that was buying dozens of hotels from a bankruptcy portfolio.
Taylor Woods, 52, was arraigned on Tuesday before Judge Meryl Berkowitz on two counts of Grand Larceny in the Second Degree (a C felony) and Scheme to Defraud in the First Degree (an E felony). The defendant pleaded not guilty and was released on his own recognizance. If convicted, Woods faces a potential maximum of five to 15 years in prison. He is due back in court on March 13, 2024.
“This defendant allegedly bilked two investors out of a total of $1.2 million using empty promises of a large-scale bankruptcy portfolio acquisition that he represented as fully funded and ready to move forward imminently,” said DA Donnelly. “Our investigation revealed his overtures were nothing more than a sham, the investment was not funded, and the defendant allegedly spent his victims’ funds. Investing always comes with risk, but it should never be because of untrustworthy partners engaging in fraud.”
DA Donnelly said that, according to the indictment, during the summer of 2020, Tyler Woods allegedly began discussing an investment opportunity that involved the purchase of a bankruptcy portfolio which included 18 hotels that were part of another company’s bankruptcy estate.
In early 2021, Woods was put in touch with victim investors from Nassau County and explained that the opportunity would allow them to invest in Sky Holdings LLC, a company that Woods allegedly controlled, that would acquire, own, operate, and eventually sell a 50% share of the equity of another company, Eagle Hospitality Trust, and the bankruptcy portfolio.
Woods allegedly told the victim investors that all the financing, except for a final $10 million, was in place, and the final investment funds from the victim investors were needed quickly because the deal would close within a few weeks. Woods allegedly also told the victims that a mortgage for the hotels was already in place.
On February 4, 2021, one victim invested $1 million into Sky Holdings, in exchange for an equity ownership interest in the company, which represented 50% of the equity in the bankruptcy portfolio. The agreement stipulated that all funds raised were to be returned to the investors if the transaction was not completed.
On March 5, 2021, another victim entered into a similar agreement with a $200,000 investment, which also gave him equity ownership interest in Sky Holdings and the bankruptcy portfolio.
According to the charges, Sky Holdings never received a financial commitment to move forward with the investment beyond the funds received from the victim investors and the defendant allegedly spent the money on various expenses.
Woods was arrested by NCDA Detective Investigators on February 6, 2024.
Deputy Bureau Chief Betty Rodriguez of the Financial Crimes Bureau is prosecuting the case. The defendant is represented by Bruce Barket, Esq. and Daniel Arshack, Esq.
The charges are merely accusations, and the defendant is presumed innocent until and unless found guilty.