Sunday, September 23, 2018

Mormon Claud R. "Rick" Koerber guilty in $ 100m Ponzi scheme

Claud R. "Rick" KoerberAfter nine years of court wrangling, including a dismissal and a mistrial, Utah real estate investor Claud R. "Rick" Koerber was found guilty of 15 counts of wire fraud, fraud in the offer and sale of securities and money laundering. While prosecutors call it the largest fraud in Utah history, Koerber maintains that he defrauded no one but ran a profitable business and was singled out by those angered by his radio show, "The Free Capitalist." Koerber used his businesses — Founders Capital, Franklin Squires Investments and Franklin Squires Cos. — as a $100 million Ponzi scheme from 2004 to 2008. Prosecutors said half the money was redistributed to other investors.
While investors thought their money was to be used in real estate investments, Koerber spent it on luxury cars, producing a low-budget Mormon horror movie and his own lavish lifestyle.