Our Public Statement on The C Rick Koerber Federal Court Decision, Robert Paisola Reports

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"

 

By Tom Harvey

The Salt Lake Tribune

A prosecutor said Monday the federal government has been forced to seek a new indictment against Utah County businessman Rick Koerber after a judge threw out a key piece of evidence in a case involving an alleged investment scam that took in more than $100 million.

Assistant U.S. Attorney Stewart Walz told a federal magistrate that the ruling last month 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.

A new federal grand jury indictment should take 30 days to 60 days to hand up, Walz told U.S. Magistrate Sam Alba at a hearing that had been convened to set deadlines and a trial date for Koerber. The existing indictment says Koerber ran what allegedly was largely 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.

Koerber’s attorney, Marcus Mumford, said the decision means the charges against Koerber will be dismissed as a procedural matter if prosecutors convince a grand jury to hand up a new indictment.

"They have to come up with a new theory in the case," said Mumford. "They have to go to the grand jury and present new and different evidence to support this theory."

Waddoups ruled last month that a draft letter Koerber had prepared for major investors was subjected 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.

The decision to seek a new indictment does not mean prosecutors have a weak case, said Melodie Rydalch, spokeswoman for the U.S. Attorney’s Office for Utah.

"We have represented to the court that we may refine some counts in the current indictment and add additional counts in a superseding indictment," she said. "What we intend to do is necessitated by the court’s privilege ruling, not by any concern over the merits of the case."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.

Mumford contends the government has no evidence that Koerber promised investors one thing and did something else.