Rick Koerber

Claud 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 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, as well as luxury cars and other luxury items, all to give his businesses the false appearance of profitability.[5] Koerber attracted investors with long seminars that combined his views on capitalism with his religious philosophies. He was reported to cite his relationship with Hartman Rector Jr., an emeritus general authority of The Church of Jesus Christ of Latter-day Saints (who was reportedly in attendance for at least one of Koerber's presentations to would-be investors), and to have promised exorbitantly high profits for investors.[6][7] 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".[8] Koerber was sentenced to 170 months (14 years, 2 months) in federal prison[9][10] and restitution of $45 million dollars.[11]

Biography

At arraignment in June 2009, Koerber pleaded not guilty to all charges against him, and a trial was set for September 11, 2012.[12] 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.[13]

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.[14]

On March 28, 2014, a federal judge set a new trial date to try the remaining 18 charges,[15] 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.[16] The case was dismissed with prejudice.[17] In December 2014 prosecutors said they were willing to appeal the verdict.[18] 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.[19] 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.[20] Koerber was again indicted by a grand jury on January 18, 2017, on 18 charges,[21] however, the jury deadlocked and a mistrial was declared on October 16, 2017.[22]

On November 1, 2017, the United States Attorney's Office (District of Utah) announced plans to retry the case.[23] Filmmaker Richard Dutcher testified about Koerber's $5 million funding of the 2009 erotic horror film Evil Angel while several of Koeber's investors testified they did not know or approve of their money to bankroll a film, which prosecutors characterized as characteristic of Koerber's dishonest practices.[24] On September 20, 2018, a federal jury in the District of Utah convicted Claud R. (“Rick”) Koerber on charges of Fraud in the Offer or Sale of Securities, Wire Fraud, and Money Laundering.[25] On October 15, 2019, Judge Frederic Block sentenced Koerber to 170 months (14 years, 2 months) in federal prison[9][10] and restitution of $45 million dollars.[11]

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."[26]

Koerber was sentenced to 170 months (14 years, 2 months) in federal prison[9][10] and restitution of $45 million dollars.[11]

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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. "Judges won't delay fraud trial of ex-real estate investment guru Rick Koerber". The Salt Lake Tribune. 2017-08-10.
  6. 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.
  7. 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.
  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. "Convicted fraudster Rick Koerber sentenced to 14 years in prison, amid protests". www.ksl.com. Retrieved 2019-10-18.
  10. "Real estate fraudster Rick Koerber gets 14 years in prison during raucous hearing on his Ponzi scheme". The Salt Lake Tribune. Retrieved 2019-10-18.
  11. "#640 in United States v. Koerber (D. Utah, 2:17-cr-00037) – CourtListener.com". CourtListener. Retrieved 2019-10-18.
  12. "Man pleads not guilty in $100M Ponzi scheme". Deseret News. 2009-06-20. Retrieved 2009-10-22.
  13. "19 new charges filed in alleged megafraud". Salt Lake Tribune. 2009-11-11. Retrieved 2009-11-24.
  14. "Utah judge tosses evidence in Koerber alleged 'Ponzi' case". The Salt Lake Tribune. 2013-08-21. Retrieved 2014-04-16.
  15. "Man accused of operating Ponzi scheme gets trial date". The Salt Lake Tribune. 2014-03-28. Retrieved 2014-04-16.
  16. "Giant Utah fraud case will be dismissed". The Salt Lake Tribune. 2014-06-19. Retrieved 2014-06-20.
  17. http://www.sltrib.com/csp/mediapool/sites/qanews/news/1465245-155/koerber-case-attorney-federal-prosecutors-utah.csp
  18. http://www.sltrib.com/news/1913290-155/prosecutors-want-to-refile-utah-fraud
  19. Romboy, Dennis (2016-01-21). "Appeals courts sends case against Rick Koerber back to judge who dismissed it". DeseretNews.com. Retrieved 2017-02-10.
  20. Romboy, Dennis (2016-01-21). "Appeals courts sends case against Rick Koerber back to judge who dismissed it". DeseretNews.com. Retrieved 2017-02-10.
  21. Tribune, Tom Harvey The Salt Lake. "Utah's 'free capitalist' Koerber faces reindictment over Ponzi scheme". The Salt Lake Tribune. Retrieved 2017-02-10.
  22. Romero, McKenzie (2017-10-16). "Jury deadlocked in fraud trial for Utah businessman Rick Koerber". Deseret News. Retrieved 2019-10-18.
  23. "Statement on U.S. v Koerber". www.justice.gov. 2017-11-01. Retrieved 2019-10-18.
  24. Tom Harvey (2017-09-12). Accused real estate guru invested in sexy horror flick to raise funds for movie on Mormon church founder Joseph Smith The Salt Lake Tribue, accessed 13 April 2020
  25. "US v. Koerber". www.justice.gov. 2019-03-13. Retrieved 2019-10-18.
  26. "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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