Former real estate auctioneer Daniel J. Flynn disputes federal prosecutors’ contention that he bilked investors out of $21.1 million in an eight-year fraud scheme.

Flynn pled guilty in February to nine fraud counts as part of a plea agreement. Prosecutors said he solicited loans and investments from 2007 through 2015 for a real estate fund that was marketed as targeting distressed properties. Instead, he used the money to repay previous investors, pay personal expenses and bail out his earlier investment in a Quincy nursing home condo conversion that stalled during the recession.

The former CEO of Quincy-based Daniel J. Flynn and Co. is scheduled to be sentenced May 9.

A pre-sentencing report pegged victims’ total losses at $21.1 million, according to a motion filed by Assistant U.S. Attorney Neil Gallagher Jr. in U.S. District Court in Boston. Flynn estimates the total losses at $12.1 million, according to the filing.

Given the wide discrepancy between Flynn’s estimate and the government’s, Gallagher requested a separate hearing within 90 days after sentencing to determine restitution.

In pleading guilty, Flynn told the court he “made some bad decisions” related to an underwater investment. Prosecutors estimated approximately 150 people invested money with Flynn that was misappropriated.

Under federal sentencing guidelines, Flynn would receive a sentence ranging from 78 to 97 months. Prosecutors recommended a 70-month sentence, but Zobel can impose a longer or shorter sentence at her discretion.

At the plea hearing, Gallagher told Zobel the government had not identified any of Flynn’s assets.

Flynn Disputes $21M Fraud Figure

by Steve Adams time to read: 1 min