Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Utah
Related: About this forumKoerber Charged With Wire Fraud, Money Laundering, Tax Evasion, And Fraud
https://www.justice.gov/usao-ut/pr/koerber-charged-wire-fraud-money-laundering-tax-evasion-and-fraud-offer-and-saleDepartment of Justice
U.S. Attorneys Office
District of Utah
FOR IMMEDIATE RELEASE
Thursday, January 19, 2017
Koerber Charged With Wire Fraud, Money Laundering, Tax Evasion, And Fraud In The Offer And Sale Of Securities In 18-Count Indictment Returned By Federal Grand Jury
SALT LAKE CITY A federal grand jury returned an 18-count indictment Wednesday afternoon charging Claud R. Koerber aka Rick Koerber with violations of federal law in connection with an alleged fraudulent investment scheme. Koerber, age 43, faces four counts of fraud in the offer and sale of securities, 10 counts of wire fraud, two counts of money laundering, and two counts of tax evasion.
(snip)
The indictment alleges that Koerber was involved with several businesses in Utah. He exercised almost complete control over Founders Capital, which received investment money, sometimes termed as loans, from victims of the alleged fraud scheme described in the indictment. The indictment alleges Koerber was also involved with Founders Capital, Franklin Squires Investments, and Franklin Squires Companies.
According to the indictment, which is attached to this press release, from about 2004 to about Dec. 31, 2008, Koerber devised a fraud investment scheme to obtain money through false pretenses, representations, and promises. Koerber used the United States mails, interstate wire transmissions, and interstate commerce to execute the scheme, the indictment alleges.
The indictment alleges that Koerber used investors money for purposes not disclosed to many investors or potential investors, such as for Koerbers personal housing, other personal expenses, expensive automobiles, investments into restaurants, and unsecured loans to other businesses and entities.
The indictment alleges that in order to convince earlier investors that their funds were earning money and to convince potential investors that the program was working and earning money, Koerber operated the businesses of Founders Capital and related entities as a Ponzi scheme. According to the indictment, Koerber used money placed with Founders Capital to make interest payments to earlier investors to create the false impression that the businesses were profitable, that investments were safe, secure, and that interest was being paid.
The indictment alleges that at no time during the operation of the investment scheme did Founders Capital or Franklin Squires entities operated by Koerber make a yearly profit. Koerber, by means of his misrepresentations and omissions, obtained approximately $100 million in investor funds, the indictment alleges. More than $50 million of the investor funds were used to make Ponzi payments to other investors. When Founders Capital stopped making payments to investors in 2007, investors lost approximately $47 million, according to the indictment.
(snip)
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
0 replies, 1437 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (0)
ReplyReply to this post