Rexburg man sentenced to more than 5 years in federal prison for wire fraud, aggravated identity theft – LocalNews8.com

POCATELLO, IDAHO (KIFI) – Kelly Ryan McCandless, 53, of Rexburg, was sentenced to 65 months in federal prison after being convicted of defrauding his partners out of more than $580,000.
Attorney Josh Hurwit announced the announcement Wednesday.

According to court documents, in 2017, McCandless and two others formed a partnership to build a
96-bed student residence in Rexburg, Idaho. McCandless' contribution was to build the
property, using a loan guaranteed by the company, at cost. In exchange for its efforts, and on
Once the project is completed, he would be entitled to 24.5% of the net value of the building and future revenues.

However, during the following year, and from the first bank withdrawal,
McCandless falsified subcontractor invoices and bank withdrawal requests. He illegally used
the signatures of the subcontractors to withdraw the loan proceeds from the bank in an amount greater than that
was billed to build the project. The bank relied on these documents and sent McCandless the
product of the loan. McCandless continued this scheme for months and wrongly took
about $580,000, which he used to purchase personal items such as a brand new pickup truck,
several snowmobiles, several dirt bikes, toy trailers, a Jeep, a Jeep Grand Cherokee, $5,000 in
dental care, vacations, among other expenses. His actions caused the project to fail
at a standstill, and without the injection of more capital by one of the partners in the project, student housing
the property would never have been completed.

After a six-day jury trial, McCandless was found guilty of four counts of wire fraud and four counts of
of aggravated identity theft on November 29, 2023.

Chief U.S. District Judge David C. Nye also ordered McCandless to pay a $10,000 fine and
serve three years of supervised release after his prison sentence.

“The defendant defrauded partners who trusted him and spent the funds he stole on a
“He couldn’t legitimately afford a lifestyle,” U.S. Attorney Hurwit said. “We will not tolerate that.”
illegal conduct, which truly harms victims and threatens our local economies. I am grateful for the
The FBI worked hard on this case and we thank the jury for their work.

“Like many fraudsters, McCandless was motivated by greed, lining his pockets with embezzled money.
money and spends it on expensive toys for himself,” said Shohini Sinha of Salt Lake City
FBI: “While he may have benefited in the short term, he will now have to answer for it
betraying and defrauding his victims.

U.S. Attorney Hurwit praised the work of the FBI, which led to the charges.
Attorney David Morse and former Assistant U.S. Attorney John Shirts prosecuted the case.