Idaho Man Stole $1.2M In Investment Scam: Nassau DA

NASSAU COUNTY, NY — An Idaho man was indicted after he stole approximately $1.2 million from people during an investment fraud scheme in 2021, Nassau County District Attorney Anne Donnelly said Thursday.

Taylor Woods, 52, convinced people to believe they were investing in a company that was buying dozens of hotels from a bankruptcy portfolio, the DA said.

He was arraigned on two counts of second-degree grand larceny and first-degree scheme to defraud. Woods 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.

"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," Donnelly said in a news release. "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."

During the summer of 2020, Woods 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, Donnelly said.

In early 2021, Woods was put in touch with 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, prosecutors said.

Woods told the investors that all the financing, except for a final $10 million, was in place, and the final investment funds from the investors were needed quickly because the deal would close within a few weeks, officials said. Woods also told the investors that a mortgage for the hotels was already in place, authorities said.

On Feb. 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, investigators said. The agreement stipulated that all funds raised were to be returned to the investors if the transaction was not completed, officials said.

On March 5, 2021, another victim entered into a similar agreement with a $200K investment, which also gave him equity ownership interest in Sky Holdings and the bankruptcy portfolio, the DA said.

Sky Holdings never received a financial commitment to move forward with the investment beyond the funds received from the victim investors, and Woods spent the money on different expenses, prosecutors said.

Woods was arrested by NCDA detective investigators on Tuesday. He is represented by Bruce Barket and Daniel Arshack.