Rick Koerber

Claude Roderick "Rick" Koerber, (born Claud Roderick Franklin 1973, Casper, WY), is a Utah criminal convicted on charges of orchestrating and running a $100 million Ponzi scheme, one of the largest in Utah's history.[1][2][3][4] Koerber will be sentenced on January 21, 2019.[5] Koerber took in $100 million from 2004 to 2008 by promising his victims returns of 24% to 60% annually, but spent $50 million on Ponzi payments to prior investors, in addition other investor money luxury cars and other luxury items, all to give his businesses the false appearance of profitability.[6] Koerber attracted investors with long seminars that combined his views on capitalism with his religious philosophies, sometimes citing his relationship with a locally prominent religious leader (who was sometimes in attendance), along with promises of exorbitantly high profits for investors.[7][8] By connecting his promises of unrealistic investment returns with the commonly shared religious and political views of his local victims, Koerber was using a tactic for building trust with potential victims known as "affinity fraud".[9]

Biography

At arraignment in June 2009, Koerber pleaded not guilty to all charges against him, and a trial was set for September 11, 2012.[10] In November 2009, U.S. Federal prosecutors filed 19 additional charges of fraud against Koerber, including one count of mail fraud, six counts of fraud in the offer and sale of securities, one count of sale of unregistered securities, 10 counts of wire fraud, two counts of money laundering and two counts of tax evasion, bringing the total of charges filed to 22.[11]

During evidentiary hearings a key piece of evidence was thrown out resulting in one charge being dropped because it was based on a draft of a letter to key investors and there was no evidence it was sent.[12]

On March 28, 2014, a federal judge set a new trial date to try the remaining 18 charges,[13] however Judge Clark Waddoups dismissed the case on June 19, 2014 due to the government violating Koerber's right to a speedy trial. The case was dismissed 5 years to the day after Koerber's arraignment.[14] The case was dismissed with prejudice.[15] In December 2014 prosecutors said they were willing to appeal the verdict.[16] Prosecutors appealed to the 10th Circuit Court of Appeal in Denver, Colorado. On January 21, 2016, the court found that Waddoups failed to consider the seriousness of the charges and Koerber's contributions in delaying the trial.[17] The case was sent back to the lower court and Waddoups recused himself from reviewing it. On August 25, 2016, federal judge Jill Parrish ruled that the charges could be reinstated.[18] Koerber was again indicted by a grand jury on January 18, 2017, on 18 charges.[19]

Criminal Conviction

"Jury of eight men and four women found Koerber guilty of 15 counts of securities fraud, wire fraud and money laundering. They found him not guilty on two counts of tax evasion. He faces prison time when he's sentenced in January."[20]

References

  1. ↑ "Man Known as 'The Free Capitalist' Found Guilty in $100 Million Ponzi Scheme". Yahoo News. 2018-09-21. Retrieved 2018-09-22.
  2. ↑ "Federal jury finds Rick Koerber guilty of 15 counts in massive Utah real estate fraud case". Salt Lake Tribune. 2018-09-20. Retrieved 2018-09-22.
  3. ↑ "Former Utah County real estate investor found guilty in fraud scheme". Daily Herald. 2018-09-21. Retrieved 2018-09-22.
  4. ↑ "Jury finds 'Free Capitalist' Rick Koerber Guilty in One of Utah's Biggest Fraud Cases". Fox13.com. Fox 13, Salt Lake City. 2018-09-20. Retrieved 2018-09-22.
  5. ↑ "Federal jury finds Rick Koerber guilty of 15 counts in massive Utah real estate fraud case". The Salt Lake Tribune. 2018-09-20. Retrieved 2018-09-22.
  6. ↑ "Judges won't delay fraud trial of ex-real estate investment guru Rick Koerber". The Salt Lake Tribune. 2017-08-10.
  7. ↑ Peterson, Eric (2008-03-05). "House of Cards? Anxious investors fear "Free Capitalist" Rick Koerber's real estate investment empire is folding". Salt Lake City Weekly.
  8. ↑ Peterson, Eric (2009-09-30). "Friends in High Places: Indicted businessman Rick Koerber counted a former LDS General Authority as an investor-and let everyone know it". Salt Lake City Weekly.
  9. ↑ Peterson, Eric (2009-09-30). "Friends in High Places: Indicted businessman Rick Koerber counted a former LDS General Authority as an investor-and let everyone know it". Salt Lake City Weekly.
  10. ↑ "Man pleads not guilty in $100M Ponzi scheme". Deseret News. 2009-06-20. Retrieved 2009-10-22.
  11. ↑ "19 new charges filed in alleged megafraud". Salt Lake Tribune. 2009-11-11. Retrieved 2009-11-24.
  12. ↑ "Utah judge tosses evidence in Koerber alleged 'Ponzi' case". The Salt Lake Tribune. 2013-08-21. Retrieved 2014-04-16.
  13. ↑ "Man accused of operating Ponzi scheme gets trial date". The Salt Lake Tribune. 2014-03-28. Retrieved 2014-04-16.
  14. ↑ "Giant Utah fraud case will be dismissed". The Salt Lake Tribune. 2014-06-19. Retrieved 2014-06-20.
  15. ↑ http://www.sltrib.com/csp/mediapool/sites/qanews/news/1465245-155/koerber-case-attorney-federal-prosecutors-utah.csp
  16. ↑ http://www.sltrib.com/news/1913290-155/prosecutors-want-to-refile-utah-fraud
  17. ↑ Romboy, Dennis (2016-01-21). "Appeals courts sends case against Rick Koerber back to judge who dismissed it". DeseretNews.com. Retrieved 2017-02-10.
  18. ↑ Romboy, Dennis (2016-01-21). "Appeals courts sends case against Rick Koerber back to judge who dismissed it". DeseretNews.com. Retrieved 2017-02-10.
  19. ↑ Tribune, Tom Harvey The Salt Lake. "Utah's 'free capitalist' Koerber faces reindictment over Ponzi scheme". The Salt Lake Tribune. Retrieved 2017-02-10.
  20. ↑ "Jury finds 'Free Capitalist' Rick Koerber guilty in one of Utah's biggest fraud cases". fox13now.com. 2018-09-21. Retrieved 2018-09-21.
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