Madison, Connecticut resident Edward J. Safdie was sentenced Tuesday to 4 years and 3 month in federal prison for a fraud scheme revolving around his purchase of the Inn at Chester. According to documents filed with the federal district court in New Haven and statements made in court, in late 2002, Safdie approached Acorn Capital, a Greenwich-based assets lending firm, and said he needed $1 million to place in escrow to secure $3.5 million in financing in order to purchase The Inn at Chester. In January 2003, Safdie provided false and fraudulent documents to Acorn Capital that vastly overstated his personal wealth, including brokerage account statements that he fabricated. The securities named in the fabricated statements served as collateral for the loan, and Acorn Capital wired $1 million to Safdie. He then told Citizens Bank that the $1 million he received from Acorn Capital was his own, and that he was going to use the funds for a down payment on his purchase of The Inn at Chester. Safdie also provided false brokerage account statements to Citizens Bank and made other misrepresentations related to his personal wealth to the bank. On February 19, 2003, Safdie, operating through 318 Main LLC, purchased The Inn at Chester from a third-party for approximately $2.35 million. On that same date, he caused 318 Main LLC to sell The Inn at Chester to Quantum 318 LLC, which he also controlled, and did so using $3.5 million in loan proceeds obtained from Citizens Bank. Safdie then used the proceeds from the Citizens Bank loan to pay back the original $1 million Acorn Capital loan. Safdiei later conviinced Acorn Capital to provide him with a $2 million revolving loan facility, of which he drew down approximately $1.1 million. In 2005, using the Inn at Chester as security, Safdie refinanced the Inn and, by way of the refinanced mortgage, received approximately $4.5 million from Beal Bank of Plano, Texas. He then used a significant portion of the funds to repay the fraudulently obtained Citizens Bank loan. Eventually, Safdie failed to repay the Beal Bank loan, and Beal Bank foreclosed on The Inn. In February 2007, Beal Bank and SAFDIE entered into a stipulated judgment in which Beal Bank took title to the property. In April 2008, Beal Bank sold the property for a gross sales price of $2.45 million, significantly less than the $4.5 million mortgage. During Tuesday’s sentencing proceeding, Judge Janet Bond Arterton ordered Safdie to pay restitution of approximately $1.1 million to Acorn Capital.