Former ‘Property Wars’ star sentenced to 17 years in federal prison

PHOENIX – Former “Property Wars” star Scott Menaged was sentenced to 17 years in federal prison, the U.S. Attorney’s Office of Arizona said Tuesday.

According to a press release, Menaged had pleaded guilty to bank fraud, money laundering and aggravated identity theft that led to more than $30 million in losses. In addition, he was ordered to pay more than $33 million in restitution.

Menaged pleaded guilty to the charges back in October after he was found to have been embezzling millions of dollars in loans meant to be used for his real estate investment company in Phoenix. Menaged had provided fake documents showing real estate purchases to conceal the fraud.

Once the embezzled money was no longer accessible, Menaged stole the identity’s of various customers who had shopped at his Phoenix retail furniture stores.

“Menaged engaged in a multi-year fraud scheme and brazenly stole from his victims — their money, their identities, and ultimately their trust,” First Assistant United States Attorney Elizabeth A. Strange said in the release. “Today’s lengthy sentence is a fitting punishment for his egregious crimes.”

The money Menaged embezzled was used to support travel, expensive homes and luxury vehicles.

Menaged, 40, appeared on Discovery Channel’s “Property Wars” for the shows’ two seasons in 2012 and 2013.

In the show, Menaged and other personalities on the show took part in bidding on foreclosed homes in Phoenix, sight unseen.

The legal troubles Menaged faced were not the first for “Property Wars” stars, as former co-star John Ray was told by Arizona regulators to shut down his real estate investment company in 2014 after he was found to have lost his license three years prior in 2011.

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