To contact us Click HERE
LOS ANGELES—A real estate developer whoformerly resided in Atascadero was indicted today on federal fraud and moneylaundering charges that accuse him of bilking investors who put money intoCentral Coast real estate projects—money that was siphoned off for otherpurposes, including maintaining a lavish lifestyle.
Kelly Gearhart, 50, who currentlyresides in Wadsworth, Ohio, was named in a 16-count indictment returned todayby a federal grand jury. The indictment charges Gearhart with 10 counts of mailfraud, four counts of wire fraud, and two counts of money laundering.
The indictment alleges that Gearhartfraudulently solicited investments in specific real estate development projectsby falsely promising that he would use the funds to develop those projects.Gearhart also told investors that their investments—which he called loans andpromised would be paid back with interest—were secured by specific lots.
The indictment alleges that Gearhartfailed to disclose a number of things to investors, specifically, that he wasusing victims’ funds to pay for his and his wife’s lavish living expenses, thathe was using their money to develop different real estate projects than thoseintended by the victims, and that he was using victims’ money to make interestpayments to other investors.
The indictment also alleges thatGearhart falsely promised that he would sell specific lots underlying the realestate projects and then rent them back from the purchasers. The indictmentalleges that Gearhart did not tell victims that he was selling the sameindividual lots to multiple purchasers and that he did not intend to transferthe promised lots to them. The indictment further alleges that Gearhart did nottell victims that he did not have clear title to the land underlying the realestate projects.
In this multi-million-dollar case, theexact loss figure is expected to be the subject of litigation. Because of this,the government is not alleging a specific loss amount at this time.
An indictment contains allegations thata defendant has committed a crime. Every defendant is presumed innocent untiland unless proven guilty.
The mail fraud and wire fraud chargeseach carry a statutory maximum penalty of 20 years in federal prison. The moneylaundering count carries a statutory maximum penalty of 10 years in federalprison. Therefore, if he were to be convicted of all 16 counts in theindictment, Gearhart would face a maximum sentence of 300 years in federalprison.
Gearhart will be summoned to appear foran arraignment in United States District Court in the coming weeks.
The case against Gearhart is related toa case against James Hurst Miller, Jr., the former president of theAtascadero-based Hurst Financial Corporation. Miller pleaded guilty inSeptember 2011 to four counts of fraud and money laundering charges. Miller iscurrently scheduled to be sentenced on October 29 by United States DistrictJudge Otis D. Wright, II.
The case against Gearhart is the resultof an investigation by the Federal Bureau of Investigation and IRS-CriminalInvestigation. The San Luis Obispo County District Attorney’s Office providedsubstantial assistance in the investigation.
Hiç yorum yok:
Yorum Gönder