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EXCLUSIVE- THE RICK KOERBER 22 COUNT INDICTMENT LIVE! Robert Paisola Reports

Worldwide EXCLUSIVE

For Immediate Release
CNN I REPORT
ROBERT PAISOLA REPORTS LIVE
FOR WESTERN CAPITAL MULTIMEDIA
Los Angeles, California November 12, 2009 1:00 PM PST

DOWNLOAD THE FULL INDICTMENT HERE!

To our friends around the world:

Since we released the news yesterday that Rick Koerber (Claud R. Koerber) was charged by a Federal Grand Jury on November 09, 2009 with a 22 count Superseding Indictment, we have been trying to get a copy of the indictment for you, our listeners, viewers and readers to review. It appears that the US Attorney in Utah issued a press release announcing the additional charges and "forgot" to file the document in the court!

This is the document that was obtained from the United States Attorneys Communications Liaison:







After going through many layers of government, we were able to get a copy for YOU, the American Public to review!

If you look on PACER, the OFFICIAL COURT RECORD, there is no entry showing this document. Why is that? We will bring you more on that story as soon as we receive additional details, in the interim, here is a link to the official indictment that was never released! How is this possible? Does not the Defendant have a right to see the indictment prior to reading about a document that is not even recorded in the National Media?

DOWNLOAD THE FULL INDICTMENT HERE!

Send comments to Confidential@FRANKLINSQUIRESLAWSUIT.COM

THE TEXT FOR OUR FRIENDS AT GOOGLE!

F1L..ED

U.S. DiSTRICT COURT

BRETI'L. TOLMAN, United States Attorney (#8821) STEWART C. WALZ, Assistant United States Atton¥OO't1tml74)) P 4: 43 TREY MAYFIELD, Assistant United States Attorney (PrOVisionally Admitted)

Text Box: Attorneys for the United States ofAmerica 	. 	[::. :F;;":-~ :::F L: :,\:  185 South State Street, Suite 300 Salt Lake City, Utah 84111 		i:'\'(:~;XT,ijTy:~::fC~C-'-¬ Telephone: (801) 524-5682

IN THE UNITED STATES DISTRICT COURT DISTRICT OF UTAH, CENTRAL DIVISION

UNITED STATES OF AMERICA,

Plaintiff,

v.

CLAUD R. KOERBER aJkJa RICK KOERBER,

Defendant.

Case No. 2:09-CR-00302-TS

SUPERSEDING INDICTMENT

VIO. 18 U.S.C. § 1341 (Mail Fraud); 15

U.S.c. §§77q(a) and 77x (Fraud in the Offer and Sale ofSecurities); 15 U.S.C. §§71e(c) and 77x (Sale ofUnregistered Securities); 18 U.S.C. § 1343 (Wire Fraud); 18 U.S.C. § 1957 (Money Laundering Transactions); 26

U.S.C. §-7201 (Tax Evasion)

The Grand Jury charges: The Defendant and His Businesses At all times relevant to this indictment:

1. Defendant CLAUD R. KOERBER (a.k.a. RlCK KOERBER) was an individual with decision making authority over several businesses located in Utah.

2. Founders Capital, LLC (Founders Capital) was a Utah Limited Liability Company fonned in or around April 2005 and associated with Defendant KOERBER. Founders Capital

received investment monies, sometimes termed as loans, from victims of the scbeme and artifice to defraud alleged below.

3. . Franklin Squires Investments, LLC, and Franklin Squires Companies, LLC, were Utah limited liability companies associated with Defendant KOERBER and Founders Capital.

The Scheme and Artifice to Defraud

4. From on or about an unknown date in 2004 to on or about December 31, 2008, in the Central Division of the District of Utah and elsewhere, Defendant KOERBER devised and intend to devise a scheme and artifice to defraud and for obtaining money by means offalse and fraudulent pretenses, representations, and promises. In execution of th~ scheme to defraud, Defendant KOERBER used the United States mails, interstate wire transmissions, and the facilities and means ·of interstate commerce.

5. Beginning around 2004, Defendant KOESER created and presented a series of seminars designed t,o encourage individuals to make money through a real estate program that Defendant KOERBER named the "Equity Mill." It was a part ofthe scheme and artifice to defraud tbat Defendant KOERBER accepted money from individuals and companies through Founders Capital, and with the representation that Founders Capital would use the money to make "bard money" or bridge loans to other entities associated with Founders Capital, namely

...•.

Hill Erickson LLC (Hill Erickson), and New Castle Holdings LLC (New Castle), for the purpose ofacquiring real property for use in the "Equity Mill."

6. Defendant KOERBER communicated his misrepresentations and omissions regarding his schemes, both directly and indirectly, to the different levels ofinvestors and potential investors through various means, including his seminars, phone calls, mailings, and advertisements. Defendant KOEBER made such misrepresentations and omissions to colleagues and intermediaries with the knowledge that such information would be disseminated to other

.investors and potential investors.

7. It was further a part ofthe scheme and artifice to defraud that Defendant KOERBER represented to investors and potential investors that through the "Equity Mill," substantial amounts of money could be made. Defendant KOERBER paid varying amounts of interest on the money provided to Founders Capital,·but most generally 5% per month to its first line investors.

8. It was further a part ofthe scheme and artifice to defraud that the Defendant.

KOERBER caused advertisements to be placed -in "Creative Real Estate Lifestyles" and "Prosperity lifestyles" magazines during 2006 and 2007. The advertisements for Franklin Squires, an entity related to Founders Capital, stated, "Let us show you How to Safely Earn 1-5% Per Month on Your Cash. How to make GREAT MONEY fast in real estate without EVER buying property." The Defendant KOERBER knew these ads were false and misleading because Franklin Squires never made a profit in 2005, 2006 and 2007 and in fact lost money in those years, that the 1-5% paid on investors' money carne from other investors' money as described below, and that the money invested was not safe.

9. It was further a part of the scheme and artifice to defraud that Defendant 3

KOERBER told investors that the investment was risk free or that there was little risk because the investments were backed by real estate.

10. It was further a part ofthe scheme and artifice to defraud that Defendant KOERBER represented to investors and potential investors, "Founders Capital, LLC provides the opportunity to the families to loan their funds directly to Founders Capital, LLC in exchange for an aggressive interest payment and a high degree ofliquidity. Founders Capital, LLC then re­loans the money to parties that meet Founders Capital, LLC lending criteria."

11. It was further a part of the scheme and artifice to defraud that Defendant KOERBER also represented to investors and potential investors that the funds loaned to Founders Capital, "Are usually backed, collateralized or secured by real property ofgreater or substantially similar value. The monies are then used by the entities such as Founders Capital, LLC as 'short term' financing to acquire and improve real property investments prior to obtaining more permanent cost effective financing."

12. It was further a part of the scheme and artifice to defraud that Defendant . KOERBER represented to investors and potential investors, "when individuals or families make loans to Founders Capital, LLC typical interest rates on the loaned funds ... range between 1­10% a month .... Typical levels ofsecurity or collateralization range between 50% and 150%."

13. It was further a part of the scheme and artifice to defraud that Defendant KOERBER knew the above representations were false, or, made these representations false by taking substantial amounts of the money invested with Founders Capital and using it for purposes

other than real estate bridge loans and to purchase real property. Furthennore, most of the money placed with Founders Capital was not secured or collateralized by real estate.

14. It was further a part ofthe scheme and artifice to defraud thatDefendant KOERBER knew that most of the money placed with Founders Capital was not used for real estate purchases and knew that a substantial amount of the money was diverted for other purposes because Defendant KOERBER almost exclusively controlled the use of the funds placed into Founders Capital.

15. It was further a part ofthe scheme and artifice to defraud that Defendant KOERBER used money for purposes not disclosed to the investors and potential investors with Founders Capital, such as for Defendant KOERBER's personal housing, expensive automobiles, investments into restaurants, and investments into other businesses. For example, Defendant KOERBER caused over $850,0000 to be spent on restaurants, $800,000 to be loaned to an associate for a restaurant, and over"$l,OOO,OOO to be spent on expensive automobiles. In addition, Defendant KOERBER caused over $5 million to be spent making a movie.

16. It was further a part ofthe scheme and artifice to defraud that in order to convince earlier investors that their funds were earning money and to convince potential investors that the program was working and earning money, Defendant KOERBER operated the businesses of Founders Capital and related entities as a "ponzi scheme". That is, Defendant KOERBER used money placed with Founders Capital to make interest payments to earlier investors. In this way, Defendant KOERBER created the false impression that the businesses were profitable, that the investments were safe, secure, and that interest was being paid.

17. At no time during the operation of the scheme did the Founders Capital or Franklin Squires entities operated by Defendant KOERBER make a yearly profit. Defendant KOERBER, by means of his misrepresentations and omissions, obtained approximately $100 million in investor funds. It was further a part of the scheme and artifice to defraud that over $50 million ofthose investor funds were used to make ponzi payments.

18. It was further a part ofthe scheme and artifice to defraud that despite the fact that

neither Founders Capital nor Franklin Squires made a profit in 2005, 2006 and 2007, the Defendant KOERBER falsely and fraudulently stated in an article distributed to investors and potential investors that in 2005, the Franklin Squires Companies did $1 n million in revenue and in 2006, the Franklin Squires Companies and the businesses in which Franklin Squires had a substantial interest generated revenues in excess of$500 million.

19. It was further part ofthe scheme and artifice to defraud that the Defendant

KOERBER created a false aura ofsuccess by buying expensive cars, showing photographs of his mansion, claiming that a large "cabin" near Heber, Utah was his second home, despite the fact that he did not own it, and minting his own gold coins. This aura was used to gain credibility with investors and potential investors and induce investments.

20. It was further part of the scheme and artifice to defraud that the Defendant

KOERBER told investors and potential investors that he had gotten in trouble with the Wyoming Division ofSecurities and had gone bankrupt, but had paid all of his investors in Wyoming back without disclosing that he had used some ofthe money investors placed with Founders Capital to make the repayments.

Countt 18 U.S.c. § 1341 (Mail Fraud)

21. The allegations of the Scheme and Artifice to Defraud are incorporated by this reference as though fully set forth herein.

22. On or about July 20, 2005, in the Central Division of the District of Utah,

CLAUD R. KOERBER, Defendant herein, having devised and intended to devise a scheme and artifice to defraud, and for obtaining money and property by means of false and fraudulent pretenses, representations, and promises, and for the purpose ofexecuting said.scheme and artifice to defraud and attempting to do so, did cause to be deposited in an authorized depository for mail matter a letter addressed "To Our Lenders" which contained many of the false and fraudulent representations alleged in the Scheme and Artifice to Defraud; all in violation of 18 V.S.c. § 1341 and 18 U.S.C. § 2(b).

Count 2 through 7 15 U.S.C. §§ 77q(a) and 77x (Fraud in the Offer and Sale of Securities)

23. The allegations of the Scheme and Artifice to Defraud are incorporated by this reference as though fully set forth herein.

24. .Onoraboutthedateslistedbelow,intheCentralDivision oftheDistrict ofUtah,

CLAUD R. KOERBER, Defendant, willfully, in the offer and sale of securities, that is investments in Founders Capital, by the use of the means and instruments of transportation and communication in interstate

commerce and by the use ofthe mails, directly and indirectly. (l) Did employ a device, scheme, and artifice to defraud; (2) Did obtain money by means ofuntrue statements ofmaterial fact and omissions to state material facts necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleadihg; (3) Did engage in transactions, practices, and courses ofbusiness which operated as a fraud and deceit upon investors; all in violation of 15 U.S.C. § 77q(a) and § 77x (securities fraud) and 18 U.S.C. § 2(a) and (b) (aiding and abetting and causing):

Text Box: COUNT 	DATE 	USE OF INTERSTATE MEANS  2 	March 16, 2006 	Internet Advertisement of Real Estate Seminar  3 	Summer 2006 	Advertisement to "Safely E~ 1-5% per Month on Your Cash" in Creative Real Estate Magazine published in Wyoming and distributed in Utah  4 	Winter 2006/2007 	Advertisement to "'Safely Earn 1-5% per Month on Your Cash" in Creative Real Estate Magazine published in Wyoming and distributed in Utah  5 	November 4, 2005 	Wire Transfer of$850,000 from investor Ml  6 	July 6,2006 	Wire Transfer of$500,000 from investor MI  7 	May 22,2007 	Wire Transfer of$I,OOO,OOO from MIWE Holdings, LLC

Count 8 15 U.S.c. §§77e(c) and 77x; (Sale of Unregistered Securities)

25. The allegations ofthe Scheme and Artifice to Defraud are incorporated by this reference as though fully set forth herein.

26. On or about from July 2005 until December 2008, in the Central Division ofthe District of Utah,

CLAUD R. KOERBER, Defendant, willfully, directly and indirectly, by the use ofthe means and instruments of transportation and communication in interstate commerce and of the mails did offer to sen a security and cause others to offer to sell a security,lhat is, 'an investment in Founders Capital, without a registration statement being in effect as to that security; all in violation of 15 U.S.c. § 77e(c) and § 77x, and 18 U.S.c. §§ 2(a) and 2(b).

Count 9 through 17 18 U.S.c. § 1343 (Wire Fraud)

27. The allegations ofthe Scheme and Artifice to Defraud are incorporated by this reference as though fully set forth herein.

28. On or about the dates listed below, in the Central Division of the District of Utah,

CLAUD R. KOERBER, Defendant herein, having devised and intended to devise a scheme and artifice to defraud, and for obtaining money and property by means offalse and fraudulent pretenses, representations, and promises, for the purpose ofexecuting said scheme and artifice to defraud, did cause to be

. transmitted by means of wire communication certain writings, signs and signals, each such use of wire cOmn1unication being a separate count ofthis Indictment; all in violation of 18 U.S.C. § 1343 and 18 U.S.C. §§ 2(a) and 2(b)..

Text Box: COUNT 	DATE 	INTERSTATE USE OF WIRES 	DESCRIPTION  9 	November &, 2005 	$147,500 Wire Transfer from a Utah Bank cleared through California 	Ponzi Payment to MIWE Holdings, LLC  10 	January 13, 2006 	$428,350 Wire Transfer to California from Utah 	Minting of Coins  11 	June 6, 2006 	$415,400 Wire Transfer from a Utah Bank cleared through California 	Ponzi Payment to MIWE Holdings, LLC  12 	July 6, 2006 	$415,400 Wire Transfer from a Utah Bank cleared through California 	Ponzi Payment to MIWE Holdings, LLC  13 	September 6, 2006 	$89,423.23 Wire Transfer from a Utah Bank cleared through California 	Ponzi Payment to Atlas Capital, LLC  14 	September 13,2006 	$298,793.25 Wire Transfer from Utah to Nevada 	Purchase of Spyker Automobile  15 	May 22, 2007 	$125,000 Wire Transfer from a Utah Bank cleared through California 	Ponzi Payment to MIWE Holdings, LLC  16 	May 22,2007 	$126,536.47 Wire Transfer from a Utah Bank cleared through California 	Ponzi Payment to investor MM

Text Box: 17 	May 22, 2007 	$109,226.45 Wire Transfer from a Utah Bank cleared through California 	Ponzi Payment to Atlas Capital, LLC

Count 18 18 U.S.c. § 1343 (Wire Fraud) .

29. The factual allegations of the Scheme and Artifice to Defraud are incorporated by

this reference as though fully set forth herein.

30. On or about September 21, 2007, in the Central Division of the District of Utah

and elsewhere, CLAUD R. KOERBER, defendant herein, having devised and intended to devise a scheme and artifice to ,defraud, and for obtaining money and property by means of false and

fraudulent pretenses, representations, and promises, for the purpose ofexecuting said scheme and artifice to defraud, did cause to be transmitted by means of wire communications by individual PB, certain writings, signs and signals, that is an interstate email from Utah to Hunter's Capital investors, including an investor in Florida, stating, among other things, "You have known all

along where. your money went and that Rick was using it to do real estate deals."; all in violation

of 18 U.S.C. § 1343 and 18 U.S.C. § 2(b).

Count 19 18 U.S.c. § 1957 (Money Laundering)

31. The allegations of the Scheme and Artifice to Defraud are incorporated by this reference as though fully set forth herein.

32. On or about June 7, 2006, in the Central Division of the District of Utah,

CLAUD R. KOERBER, Defendant herein, did knowingly engage and attempt to engage in a monetary transaction by, through, and to a financial institution, affecting interstate or foreign commerce, in criminally derived property of a value greater than $10,000, that is the purchase ofa 2001 Ferrari 550 Barchetta in the amount of$218,896.27, such property having been derived from a specified . unlawful activity, that is fraud in the sale ofsecurities in violation of15 U.S.C. §§ 77q and 77x; all in violation of 18 U.S.c. §§ 1957 and § 2(b)

Count 20 18 U.S.C. § 1957 (Money Laundering)

33. The allegations of the Scheme and Artifice to Defraud are incorporated by this reference as though fully set forth herein.

34. On or about June 7, 2006, in the Central Division of the District ofUmb,

CLAUD R. KOERBER, Defendant herein, did knowingly engage and attempt to engage in a monetary transaction by, through, and to a financial institution, affecting interstate or foreign commerce, in criminally derived property ofa value greater than $10,000, that is the purchase of a 2004 Ferrari 360 in the amount of $213,459.67, such property having been derived from a specified unlawful activity, thatisfraud inthesale ofsecuritiesinviolation of15U.S.C. §§ 77qand77x; all in violation of 18 U.S.C. §§ 1957 and § 2(b).

Count 21 12

26 U.S.C. § 7201 (Tax Evasion) .

35. The factual allegations ofthe Scheme and Artifice to Defraud are incorporated by this reference as though fully set forth herein.

36. During the year 2005,

CLAUD R KOERBER, Defendant herein, a resident ofthe State ofUtah, had and received a taxable income of in excess of $600,000; that upon said taxable income he owed to the United States of America income tax of in excess of$150,000; that he was required by law on or before October 15, 2006, to make an income tax return to the Internal Revenue Service, and to pay such income tax; that well knowing the foregoing facts, defendant KOERBER on or about October 15, 2006, in the District of Utah, did willfully and knowingly attempt to evade and defeat said income tax due and owing to the United States ofAmerica for the year 2005 by failing to make an income tax return to the Internal Revenue Service, by failing to pay said income tax to the Internal Revenue Service, and by causing various business entities under the control ofdefendant KOERBER to pay personal expenses on his behalf; all in violation of26 U.S.C. § 7201.

Count 22 26 U.S.C. § 7201 (Tax Evasion)

37. The factual allegations ofthe Scheme and Artifice to Defraud are incorporated by this reference as though fully set forth herein.

38. During the year 2006,

CLAUD R. KOERBER,

Defendantherein,a resident ofthe State ofUtah,hadandreceivedataxableincome ofin excess of $300,OOO~ that upon said taxable income he owed to the United States of America income tax ofin excess of $1 00,000; that he was required by law on or before April 16, 2007, to make an income tax return to the Internal Revenue Service, and to pay such income tax~ that well knowing the foregoing facts, Defendant KOERBER, on or about April 16,2007, in the District ofUtah, did willfully and knowingly attempt to evade and defeat said income tax due and owing to the United States of America for the year 2006 by failing to make an income tax return to the Internal Revenue Service, by failing to pay said income tax to the Internal Revenue Service, and by causing various business entities under the control ofDefendant KOERBER to pay personal expenses on his behalf; all in violation of26 U.S.C. § 7201.

A TRUE BILL:

FOREPERSON 0

BRETT L. TOLMAN United States Attorney

Assistant United States Attorneys


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