Olathe man is charged in $8 million fraud scheme

An Olathe man is accused of bilking a Turkish business investor out of more than $8 million.

A federal grand jury indictment was handed down Thursday in Kansas City, Kan., accusing 55-year-old Nagy Shehata of conspiring with a Texas woman to defraud the investor. They are charged with wire fraud and conspiracy to commit wire fraud. Shehata is also charged with money laundering.

Federal prosecutors said the Turkish investor sent the defendants money to invest in shopping mall and hospital building projects in Turkey and Syria.

Instead, Shehata and the Texas woman used the money for their own benefit, according to the allegations.

Shehata bought a house for $855,000 and a $111,000 vehicle, according to prosecutors.

This story was originally published December 17, 2015 at 3:51 PM with the headline "Olathe man is charged in $8 million fraud scheme."