Utah judge tosses evidence in Koerber alleged ‘Ponzi’ case-Federal court » Prosecutors failed to follow rules, violated constitutional rights, ruling says.
Here We Go Again! Rick Koerber's Confidentiality is Violated-- By A Sitting US ATTORNEY, Stewart Young
DISCLAIMER- ALL DATA THAT IS RELEASED IS FOR MEDIA RELATED PURPOSES AND IS BEING DONE SO WITH THAT INTENT.
We have just received a digital audio document from a source that shows just how desperate the United States Government is to convict Rick Koerber and Franklin Squires. We will present to you a full media release of the full backstory and the the complete conversation by and between third parties to the Koerber Case by one of the CURRENT PROSECUTORS, Stewart Young of Utah.
Stand by my friends, because this tape is going to blow you away. We thank our sources in advance for having the foresight to record this documentation of prosecutorial abuse. Its amazing that they could not trust ABC, NBC or CBS.... There is a reason for that.
This will be posted on CNN IReport.
Western Capital Multimedia USA
THE AUDIO FROM AUSA STEWART YOUNG (DOWNLOAD THIS NOW)
IF YOU ARE INTERESTED IN EDUCATIONAL FAIR USE JUSTICE, DOWNLOAD THIS NOW AND EMAIL US THE LINK AROUND THE WORLD.
This file has now been collocated on 16 servers around the world. We are posting this as an EDUCATIONAL EXCEPTION TO THE COPYRIGHT. IF ANY ATTEMPT IS MADE TO PULL THIS DOWN AGAIN, WE WILL PROVIDE YOU WITH THE ENTIRE BACKSTORY OF WHERE IT CAME FROM.
COMMENT: 5-21-13 Los Angeles
THE AUDIO FILE LINK
AUTHORIZATION TO POST:
- The purpose and character of the use, including whether such use is of commercial nature or is for nonprofit educational purposes
- The nature of the copyrighted work
- The amount and substantiality of the portion used in relation to the copyrighted work as a whole
- The effect of the use upon the potential market for, or value of, the copyrighted work
Rick Koerber of Franklin Squires asks US Federal Judge Clark Waddups (Utah) to toss interview with agents
asks US Federal Judge Clark Waddups (Utah) to toss interview with agents
Feds file new indictment in Koerber investment fraud case , Colaboration by Robert Paisola WC Media USA
The Indictment from The US Attorney Website: Not too much different... Look at the Date... 2009? Is this just a rehash of the old stuff.. Looking at the Justice Department Memo (below) ...YEP
"There are no substantive changes in the superseding indictment. Changes were made to the section of the indictment describing the scheme and artifice to defraud. In addition, Count 1 of the previous indictment was eliminated following a ruling by U.S. District Judge Clark Waddoups that documents which formed the basis of Count 1 were protected by the attorney-client privilege."
The Official United States Justice Department Statement
The Salt Lake Tribune
Published: September 29, 2011 08:48PM
Updated: September 29, 2011 11:53PM
Francisco Kjolseth | Tribune file photo Rick Koerber, accused of massive fraud in Utah County shows up to Federal Court in Salt Lake City in January 2010 for a status hearing alongside his wife, Jewel Skousen. The federal government on Thursday filed a new indictment against Koerber after a judge threw out a key piece of evidence in case over an alleged investment scam that took in more than $100 million.
A federal grand jury on Thursday returned a new 20-count indictment alleging Utah County businessman Rick Koerber engaged in widespread investment and tax fraud.
The indictment follows a federal judge’s decision in July to throw out a key piece of evidence in Koerber’s case, in which he is accused of running an investment scam that took in more than $100 million.
Assistant U.S. Attorney Stewart Walz previously said the ruling by U.S. District Judge Clark Waddoups affected a “significant” part of an existing 22-count indictment alleging fraud, money laundering and tax evasion by Koerber in his operation of FranklinSquires Cos. and related real-estate investment businesses.
Waddoups’ decision forced prosecutors to seek a new indictment, which was filed Thursday, said Melodie Rydalch, public information officer for the U.S. Attorney’s Office.
“There are no substantive changes in the superseding indictment,” Rydalch wrote in a statement. She said small changes were made to a section of the indictment describing the alleged “scheme and artifice to defraud.”
Count one of the first indictment was deleted after Waddoups’ ruling, which found documents that formed the basis of count one were protected by attorney-client privilege, Rydalch said.
The indictment accuses Koerber of operating a Ponzi scheme in which money from new investors was used to pay initial and previous investors to make the businesses appear profitable and to continue to attract new money.
Waddoups’ previous ruling stated a draft letter Koerber had prepared for major investors was subject to attorney-client privilege and couldn’t be used against him. The government contended the letter had been sent to investors in the real-estate company, but Waddoups said testimony from Koerber and other sources indicated the letter was never sent out and remained confidential communication between Koerber and attorneys.
Waddoups said in his ruling that a government witness, Koerber’s former personal assistant, was not credible when she testified she mailed out the letter on Koerber’s instructions.
The letter has not been placed in the court record nor read in open court, but testimony and court filings indicate it had to do with how investors’ funds would be used.
Koerber was originally indicted on three counts in May 2009, but 19 additional charges were added in a previous superseding indictment in November of that year.
Koerber was considered something of an investment guru in Utah County, where he charged large fees for seminars and classes about investing in real estate using procedures he called “equity milling.” But prosecutors also said he lured in hundreds of investors with promises of high returns before the companies collapsed when the nation’s real-estate bubble burst in 2008.
The indictments allege he used about half of the $100 million to pay back initial investors and also spent funds on investments other than real estate.
Koerber’s attorney, Marcus Mumford, contends the government has no evidence that Koerber promised investors one thing and did something else.
Koerber partner faces tax charge
Gabriel S. Joseph, a partner with Rick Koerber in the FranklinSquires Cos., also faces federal charges. Joseph was charged in April with two misdemeanors for allegedly failing to file tax returns for 2004 and 2005. He has pleaded not guilty, and a trial is set for December.
This is another Article on this Matter:
Utah County businessman indicted in federal court, again
Jim Dalrymple - Daily Herald | Posted: Friday, September 30, 2011 12:01 am | No Comments Posted
Font Size: Default font size Larger font size
SALT LAKE CITY -- A federal grand jury has returned a second superseding indictment against a Utah County businessman accused of tax fraud.
The indictment charges Rick Koerber with six 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. A federal court news release states that one count from a previous indictment was eliminated because a document on which that count was based could not be used in court.
Court documents state that Koerber used several different businesses and Ponzi schemes to bilk investors out of their money. The case was filed in 2009, and Koerber initially was charged with three counts -- mail fraud, wire fraud and tax evasion. Additional criminal charges were filed later for his alleged involvement in a $100 million Ponzi scheme.
According to Koerber's charging documents, Koerber carried out his scheme between 2004 and 2008. The documents state that he used a real estate program he dubbed an "Equity Mill" to convince investors that they could make significant amounts of money. He attracted new investors with magazine advertisements that promised investors they could make money without ever buying property, the documents reveal. He also reportedly claimed that the so-called investments were risk-free.
But the money he took in through his Founders Capital company reportedly was not used for the Equity Mill -- as he claimed it would be -- and other companies Koerber ran were not profitable. Koerber was aware of those facts, the documents assert, but intentionally misled investors.
Koerber also is accused of using investor money improperly. The documents state that he spent more than $800,000 on restaurants, $1 million on expensive cars, $5 million making a movie, $425,000 minting coins and hundreds of thousands of dollars on other expenses. The documents ultimately assert that Koerber took in more than $100 million in investor funds, and used more than $50 million to make Ponzi payments.
Koerber's new indictment comes after a judge prohibited prosecutors from using a letter Koerber wrote in the past. Koerber argued that the letter was protected by attorney-client privilege, while prosecutors believed he had used it to mislead investors.
Koerber's attorney, Marcus Mumford, has said that he believes the allegations are baseless. He pointed out that a key witness for the prosecution turned out not to be credible. Mumford also said the entire case has been built on unsupported facts and conclusions.
Copyright 2011 Daily Herald. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Posted in Crime-and-courts, Alpine, Jim-dalrymple on Friday, September 30, 2011 12:01 am Updated: 12:15 am. | Tags: Alpine, Crime, Fraud, Federal Court, Tax Evasion, Rick Koerber
SALT LAKE CITY -- Federal prosecutors plan to file a new, or superseding, indictment against an Alpine businessman after a judge ruled that a letter the man wrote cannot be used in court.
Melodie Rydalch, spokeswoman for the U.S. Attorney's Office in Utah, said that the federal government's first count against Rick Koerber is based on a specific document that U.S. District Judge Clark Waddoups ruled Tuesday is privileged. As a result, prosecutors cannot use that document and will seek the superseding indictment. Rydalch did not say what new charges Koerber may face.
Koerber had faced 22 charges related to tax evasion and fraud. Court documents state that Koerber used several different businesses and Ponzi schemes to bilk investors out of their money. The case began in 2009 and Koerber initially was charged with three counts -- mail fraud, wire fraud and tax evasion. Nineteen additional criminal charges were filed later for his alleged involvement in a $100 million Ponzi scheme.
Rydalch stressed Tuesday afternoon that seeking a superseding indictment is a routine procedure and does not mean prosecutors were dismissing the case. She added that prosecutors remain confident in the case.
But defense attorney Marcus Mumford described Tuesday's developments as a victory for Koerber. He said that the government's decision to seek a superseding indictment stemmed from a ruling Waddoups issued in June and which prohibited prosecutors from using a letter Koerber had written. Koerber argued that the letter was protected by attorney-client privilege, while prosecutors believed he had used it to mislead investors.
After a key witness for the prosecution was found to be not credible, Waddoups sided with the defense. Mumford added government investigators never found anyone who received the letter during a three-year investigation.
Mumford also said that the entire case has been built on unsupported facts and conclusions, and added that he anticipates the superseding indictment to be the same.
"We'll be interested in how the government changes its theory here," he said. "We expect that it will be faulty."
Koerber's next hearing is scheduled for Oct. 7.
Copyright 2011 Daily Herald. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Posted in Crime-and-courts, Alpine, Jim-dalrymple on Wednesday, August 3, 2011 12:14 am Updated: 2:35 pm. | Tags: Alpine, Crime, Ponzi Scheme, Fraud, Tax Evasion, Rick Koerber, Federal Court, Melodie Rydalch
To our friends in the media and around the world:
Please understand that the federal court ruling for Claud R Koerber is clearly noted. As many of you know, we have been working on this matter for over three years. You may also note that we have stated in open forums and dialogue that after we spent OVER SIX MONTHS reviewing the data and the documents on the case, and spent time with Koerber, we were also forced to immediately reverse our previous statements, as the fundamental data simply was not there. We thank you for your comments and you need to clearly understand that Western Capital is now based in Las Vegas Nevada. This is where we are spending our time. We can not, nor we issue statements on the Rick Koerber Case, other than to say, "Koerber is one of the most advanced legal minds in the country, and the evidence starts and stops at the Federal Trial Court Level. America, Simply look at his RESULTS."
To your success,
The Western Capital Team
Las Vegas Nevada USA
From The Salt Lake Tribune
Watch the interview with Rick Koerber and KUTV's Brian Mullahy
Watch the interview with Robert Paisola and Rick Koerber (Copyright 2011)
Koerber's Statement and Comments
"For the record - the link below - has been re-written by the Salt Lake Tribune after they were contacted by the government - who evidently didn't like the story very much. So, what you see now is the "clean" gov't propaganda version. The Salt Lake Tribune should be ashamed. As I've said before, they are essentially the PR arm of the government. I'll post the "whole" story on my blog at rickkoerber.com"
HIGHLAND — It's clear, just from the words he uses, that the line has been drawn in the sand.
This is a battle. A fight. This is the government versus the businessman. And while Claud "Rick" Koerber, 36, thinks it's quite a compelling story, he said it would be more interesting if this conflict weren't also his life.
Though he has been accused by the government of running a Ponzi scheme that bilked investors of $100 million, Koerber is undeterred. He's not repentant because he says he's not guilty. He believes in the money he made and the company he built. He intends to fight the battle and emerge victorious.
"The rules of the justice system are that you can fight," he said. "It's the fundamental thing that makes a free society more attractive. Just because the government accuses you, it doesn't mean it's true. I'm proud of my business. I'm proud of what we did. I think that what we did was amazing."
Koerber made a name for himself as the "Free Capitalist," a radio personality who leans Libertarian politically, is objectivist in his philosophy and capitalist when it comes to economy. Wednesday, he relaunched his Free Capitalist Project, which involves the continuation of his radio show, features an updated Free Capitalist Web site and another site of Koerber's personal blog.
More than anything, he said he is someone who believes in responsible, accountable citizens who turn to themselves — not their government — for solutions. Even in the face of their failures. And that is what the Free Capitalist is about.
Koerber said people were once allowed to go out on a limb, say, make a business investment and fail. But they now look for a place to point the blame, and quite a few fingers are pointing his way.
Koerber was hit with a three-count indictment in May 2009 charging him with mail fraud, wire fraud and tax evasion. In November, a grand jury handed down a new indictment that includes a total of 22 counts and additional charges of fraud in the offer and sale of securities, sale of unregistered securities, money laundering, and additional counts of both wire fraud and tax evasion.
If convicted of every count, he faces a maximum of 285 years in prison — more than someone might receive even for killing someone, Koerber pointed out.
The business ventures, he said, were always a side project. Prosecutors believe he solicited investors and then encouraged them to "act and think like a bank." The groups of investors were supposed to recruit other investors, all under Koerber's assurance that their investments were "backed, collateralized or secured by real property," the indictment against him states.
Koerber was involved with several businesses in Utah, including Founders Capital, Franklin Squires Investments and Franklin Squires Companies. Prosecutors say Koerber operated a Ponzi scheme to make it appear as though these companies were turning a profit to secure more investors, yet "at no time during the operation of the scheme did the Founders Capital or Franklin Squires … turn a profit."
Koerber said the term "Ponzi scheme" was used by a government looking to depict the issue with a "big, broad brush." He insists it wasn't a Ponzi scheme at all. He says his business took the same hits most other businesses did in the current economic downturn, yet his business was also affected by what he believes were lies spread by the government.
A moviemaking venture that, according to the indictment, cost about $5 million wasn't a failed project, Koerber said, merely one that hasn't seen completion. He said they're still hoping the movie will be bought and marketed.
He believes the company would have gained back what it lost, if not for the disruption and controversy caused by the indictment.
"We never would have stopped," he said. "We would have survived but for the government's reaction. You can't survive both the economic collapse and the government saying you're a fraud, a schemer."
Koerber said he never would have taken a hiatus from his Free Capitalist project, either, but he spent 2009 dealing with "this new problem" and sorting through his priorities. He chose his own attorney and underwent a divorce in November. He is now remarried and has custody of the couple's three children, though he and his first wife remain good friends and she sees the children often.
Koerber is not prohibited by the terms of his pretrial release from starting or heading up any business ventures. Within those terms, the judge ordered that Koerber actively seek employment, appear at all court hearings relevant to his case and that he not violate any federal or state laws. Melodie Rydalch, spokeswoman for the U.S. Attorney's Office, said her office could not comment on Koerber as the case is still pending in federal court.
As soon as he had the time, Koerber returned to the project and is determined to carry it on. In the meantime, he is certain that, when it comes to the charges against him, the truth will win out.
"The story you tell over time is going to change. There's really no way to see an indictment as a positive. I got indicted. That sucks, but time is on the side of truth. Everyone has an interest in seeing what happens."
COMPLIMENTS OF THE DESERET NEWS
Re-Launching Free Capitalist Radio
January 21, 2010 by FCD Administrator
Filed under Current, Featured, Principle 13
Re-Launching Free Capitalist Radio. Episode Theme : The Project, Basic Principles of Capitalism, and a Tribute to Dr. W. Cleon Skousen.
The episode focuses heavily on the basic principles of capitalism. Comments about President Obama’s recent remarks about “losing touch with Americans” and a syllogism of Ayn Rand related to Individual Rights, Property Rights, and Liberty.