tag:blogger.com,1999:blog-4333214656819150042024-03-12T20:16:13.298-06:00The Official Franklin Squires and Rick Koerber Federal Lawsuit BlogWelcome to the Number One Media Source on the Franklin Squires and Rick Koerber Lawsuit Matters. This blog is now in syndication and is being broadcast in 21 countries. Stay tuned daily for updates and documents and send all information to Investigations@mycollector.com. Watch the fireworkd America!RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.comBlogger73125tag:blogger.com,1999:blog-433321465681915004.post-70710405443028071282014-08-23T06:27:00.000-06:002014-08-23T05:41:30.985-06:00Judge throws out case against Rick Koerber Robert Paisola Reports<div id="above-asset-related" style="background-color: white; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18px;">
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Former Utah County real estate mogul Rick Koerber. A federal judge has tossed out all the charges against Koerber, as the judge ruled the government has failed to meet the qualifications to give Koerber a speedy trial.</div>
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<span class="pubdate">August 15, 2014 11:08 am</span> • <span class="byline"><a href="http://www.heraldextra.com/search/?l=50&sd=desc&s=start_time&f=html&byline=Billy%20Hesterman%0ADaily%20Herald" style="border: 0px; color: #487094; font-family: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-decoration: none;">Billy Hesterman Daily Herald</a></span></div>
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<a class="blox-comment expand-comments" href="http://www.heraldextra.com/news/local/judge-throws-out-case-against-rick-koerber/article_e3a627b8-6d80-578b-8edf-cca9fa73b953.html#comments" id="comment_e3a627b8-6d80-578b-8edf-cca9fa73b953" style="border: 0px; color: #487094; font-family: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-decoration: none;"><span class="ui-icon ui-icon-comment" style="background: url(http://bloximages.chicago2.vip.townnews.com/heraldextra.com/content/tncms/live/components/lee_core_2/resources/images/calendar/ui-icons.png) -128px -96px; display: block; float: left; height: 16px; text-indent: -9999px; width: 16px;"></span><span class="count">(5)</span> Comments</a></div>
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SALT LAKE CITY — A federal judge says he'll dismiss the case against a Utah businessman charged with running a multimillion dollar Ponzi scheme. <a class="small" href="http://www.heraldextra.com/news/local/crime-and-courts/judge-to-dismiss-fraud-case-vs-rick-koerber/article_f9a19e02-96f8-5373-9504-c46260bd821c.html" style="border: 0px; color: #487094; font-family: inherit; font-size: 11px; font-weight: inherit; margin: 0px; padding: 0px; text-decoration: none;">Read more</a></div>
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SALT LAKE CITY — A federal judge's dismissal this week of a case against a Utah businessman charged with running a multimillion-dollar Ponzi s… <a class="small" href="http://www.heraldextra.com/news/local/anger-follows-dismissal-of-ponzi-scheme-case/article_523a7814-fea3-5670-a4b6-bf385869e14c.html" style="border: 0px; color: #487094; font-family: inherit; font-size: 11px; font-weight: inherit; margin: 0px; padding: 0px; text-decoration: none;">Read more</a></div>
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A federal judge has tossed out all the charges against former Utah County real estate mogul Rick Koerber, ruling the government has failed to meet the qualifications to give Koerber a speedy trial. </div>
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Federal Judge Clark Waddoups issued a 17-page decision Thursday that found prosecutors had violated the Speedy Trial Act and that he had no other choice but to dismiss the case. Waddoups dismissed the case with prejudice, meaning Koerber cannot face the same charges at a later date. </div>
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"Because the STA has been violated, the case must be dismissed," Waddoups wrote. </div>
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Waddoups noted in the ruling the allegations against Koerber were "serious," but he said the prosecution had "actual problematic conduct" in pursuing the case and said that factor was key in his decision to not allow the government to further pursue these particular charges against Koerber. </div>
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"[T]he Government's pattern of neglect and dilatory conduct in managing the STA clock, but also several instances of questionable ethical conduct in prosecuting this case -- weigh in favor of dismissal with prejudice," read the dismissal. </div>
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Koerber was originally charged in 2009, accused of duping hundreds of Utah investors into pumping millions of dollars into bogus real estate investments. </div>
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Koerber's company, FranklinSquires, was based out of Provo, but closed its doors after an investigation by the state Division of Securities accused him of scamming investors in a $100-million Ponzi scheme and using the funds to pay for luxury vehicles, restaurant investments and to make movies.</div>
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According to Daily Herald reports on Koerber's 2009 indictment, he would, through his so-called real estate program called Equity Mill, lure investors with offers of "an aggressive interest payment and a high degree of liquidity" for loans they made to the company. He claimed investors would be paid "interest rates ranging between 1 percent and 10 percent a month."</div>
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As part of his program, Koerber encouraged first-line investors, who generally received 5 percent per month, to obtain funds from other people to place with Founders Capital. These first-line investors would then pay 3 percent per month to second-line investors, who in turn, would pay one percent per month to third-line investors.</div>
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Koerber claimed the investors' funds would be used to make bridge loans to Founders' subsidiaries, New Castle Holdings and Hill Erickson, supposedly for real estate purchases. He also claimed the investors' funds were "backed, collateralized or secured by real property of greater or substantially similar value" and that "typical levels of security or collateralization range between 50 percent and 150 percent."</div>
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"The Ponzi payments created the false impression that the businesses were profitable, investments were safe, and interest was being paid," said the indictment.</div>
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At the time of the charges Koerber said he was disappointed the government decided to seek the indictment, and that it was full of inaccuracies and misconstrued the operation of his businesses.</div>
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Koerber's attorneys did not immediately respond Friday to the Daily Herald's request for comment on the dismissal of the case. </div>
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Waddoups informed both the defense and the prosecution in June he would dismiss the case because of the violation of the Speedy Trial Act. At that time he said he needed to determine if the dismissal should be with or without prejudice. Thursday's ruling finalized his decision. </div>
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RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-433321465681915004.post-8246097993156271122014-08-23T05:29:00.001-06:002014-08-23T05:37:34.245-06:00For All Free Capitalists and Like-Minded Friends! WHAT’S NEXT? Robert Paisola Reports <div style="background: rgb(255, 255, 255); border: 0px; color: #333333; font-family: 'PT Sans', Helvetica, Arial, Lucida, sans-serif; font-size: 16px; line-height: 26px; outline: 0px; padding: 0px 0px 10px; vertical-align: baseline;">
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After reviewing all of the facts and the legal arguments from both sides, on Thursday, August 14, 2014 a federal judge finally dismissed the entire case against me, with prejudice. As part of his ruling, Judge Waddoups concluded that he could not ignore<em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“the sordid history of this case, where…the government intentionally intruded [upon Mr. Koerber’s] constitutional rights…to secure an indictment in the first instance.”</em></div>
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<span class="month" style="background: transparent; border: 0px; display: block; font-size: 14px; font-weight: 900; margin: 0px; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;">NOV</span><span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">29</span></div>
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<a href="http://www.freecapitalist.com/2013/11/29/heros-life/" style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">Heroes: Where have they gone?</a></h2>
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POSTED ON NOV 29, 2013 IN <a href="http://www.freecapitalist.com/category/bol/" rel="category tag" style="background: transparent; border: 0px; color: #969696; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="View all posts in Brain-On Lounge">BRAIN-ON LOUNGE</a>, <a href="http://www.freecapitalist.com/category/blog/" rel="category tag" style="background: transparent; border: 0px; color: #969696; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="View all posts in Rick's Blog">RICK'S BLOG</a></div>
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<span style="background: transparent; border: 0px; line-height: 1.5em; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span class="et-dropcap" style="background: transparent; border: 0px; display: block; float: left; font-size: 48px; line-height: 1; margin: 0px 7px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline;">M</span>y three-year-old son prefers to dress up in full Spider Man attire – virtually every day. When I ask him why, he says that he wants to get “big” so he can help me “fight the bad guys.” Every time I leave the house he asks, “Dad, are you going to fight the bad guys?” Often, he cries if I don’t take him with me. I’ve tried everything I can think of to help him feel better about staying home, especially on days where I have to head to the courthouse. Once, I just couldn’t</span></div>
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<a href="http://www.freecapitalist.com/2013/05/28/is-the-liberty-movement-failing/" style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">Is the Liberty Movement Failing?</a></h2>
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POSTED ON MAY 28, 2013 IN <a href="http://www.freecapitalist.com/category/radio/" rel="category tag" style="background: transparent; border: 0px; color: #969696; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="View all posts in Free Capitalist Radio">FREE CAPITALIST RADIO</a></div>
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<a href="http://www.freecapitalist.com/2008/12/05/free-minds-and-free-men/" style="background: transparent; border: 0px; color: #1e73be; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><img alt="Free Minds & Free Men" src="http://www.freecapitalist.com/wp-content/uploads/et_temp/adler500-240x240.gif" height="240" style="background: transparent; border: 0px; height: 160px; margin: 0px; max-width: 100%; outline: 0px; padding: 0px; vertical-align: baseline; width: 160px;" width="240" /></a><br />
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<span class="month" style="background: transparent; border: 0px; display: block; font-size: 14px; font-weight: 900; margin: 0px; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;">DEC</span><span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">05</span></div>
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<a href="http://www.freecapitalist.com/2008/12/05/free-minds-and-free-men/" style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">Free Minds & Free Men</a></h2>
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POSTED ON DEC 5, 2008 IN <a href="http://www.freecapitalist.com/category/bol/" rel="category tag" style="background: transparent; border: 0px; color: #969696; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="View all posts in Brain-On Lounge">BRAIN-ON LOUNGE</a></div>
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<em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Note: This is a selection from “How to Read a Book” by Mortimer J. Adler (1940). I’m re-printing it here because of the relevance it has to the notion of “study groups” and families regularly meeting together.</em></div>
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<a href="http://www.freecapitalist.com/2008/08/04/taking-one-for-the-team-my-initiation-into-a-secret-brotherhood-of-dads/" style="background: transparent; border: 0px; color: #1e73be; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><img alt="Taking One for the Team: INITIATION into the SECRET BROTHERHOOD of DADS" src="http://www.freecapitalist.com/wp-content/uploads/et_temp/shoes-h550-240x240.jpg" height="240" style="background: transparent; border: 0px; height: 160px; margin: 0px; max-width: 100%; outline: 0px; padding: 0px; vertical-align: baseline; width: 160px;" width="240" /></a><br />
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<span class="month" style="background: transparent; border: 0px; display: block; font-size: 14px; font-weight: 900; margin: 0px; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;">AUG</span><span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">04</span></div>
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<a href="http://www.freecapitalist.com/2008/08/04/taking-one-for-the-team-my-initiation-into-a-secret-brotherhood-of-dads/" style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">Taking One for the Team: INITIATION into the SECRET BROTHERHOOD of DADS</a></h2>
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POSTED ON AUG 4, 2008 IN <a href="http://www.freecapitalist.com/category/blog/" rel="category tag" style="background: transparent; border: 0px; color: #969696; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="View all posts in Rick's Blog">RICK'S BLOG</a></div>
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<span style="background: transparent; border: 0px; line-height: 1.5em; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span class="et-dropcap" style="background: transparent; border: 0px; display: block; float: left; font-size: 48px; line-height: 1; margin: 0px 7px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline;">T</span>he picture of the shoes above is evidence of an experience I had a few weeks ago. It was one of those experiences that brings you to the limit of sanity. Actually, I am surprised at how short the path can be from here (the normal, sane and rational world) to that crazy place where only parents can go.</span></div>
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<a href="http://www.freecapitalist.com/2008/06/08/who-is-les-mcguire/" style="background: transparent; border: 0px; color: #1e73be; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><img alt="Who is Les McGuire?" src="http://www.freecapitalist.com/wp-content/uploads/et_temp/Les-autum-240x240.jpg" height="240" style="background: transparent; border: 0px; height: 160px; margin: 0px; max-width: 100%; outline: 0px; padding: 0px; vertical-align: baseline; width: 160px;" width="240" /></a><br />
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<span class="month" style="background: transparent; border: 0px; display: block; font-size: 14px; font-weight: 900; margin: 0px; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;">JUN</span><span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">08</span></div>
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<a href="http://www.freecapitalist.com/2008/06/08/who-is-les-mcguire/" style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">Who is Les McGuire?</a></h2>
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POSTED ON JUN 8, 2008 IN <a href="http://www.freecapitalist.com/category/bol/" rel="category tag" style="background: transparent; border: 0px; color: #969696; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="View all posts in Brain-On Lounge">BRAIN-ON LOUNGE</a></div>
<div style="background: transparent; border: 0px; line-height: 26px; outline: 0px; padding: 0px 0px 10px; vertical-align: baseline;">
<span class="et-dropcap" style="background: transparent; border: 0px; display: block; float: left; font-size: 48px; line-height: 1; margin: 0px 7px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline;">I</span>remember hearing about <em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Atlas Shrugged</em> back in college, but for some reason I never decided to read it. Blank out (that’s for you objectivists). After going completely broke in 2001 I remember seeing my wife reading it and her encouraging me to read it. I even remember reading somewhere that President Ronald Reagan had reportedly said something like,<em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“Next to the Holy Bible, I prefer to read Atlas Shrugged by Ayn Rand.” </em>I’m not sure about the accuracy of the quote, but as for me, I wish I wouldn’t have waited to so long to</div>
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<a href="http://www.freecapitalist.com/2008/05/29/who-are-my-heroes/" style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">My Top 25 Most Significant Influences & Recommended Reading List</a></h2>
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POSTED ON MAY 29, 2008 IN <a href="http://www.freecapitalist.com/category/bol/" rel="category tag" style="background: transparent; border: 0px; color: #969696; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="View all posts in Brain-On Lounge">BRAIN-ON LOUNGE</a>,<a href="http://www.freecapitalist.com/category/project/" rel="category tag" style="background: transparent; border: 0px; color: #969696; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="View all posts in Project Resources">PROJECT RESOURCES</a></div>
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<span class="et-dropcap" style="background: transparent; border: 0px; display: block; float: left; font-size: 48px; line-height: 1; margin: 0px 7px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline;"></span>I<span class="et-dropcap" style="background: transparent; border: 0px; display: block; float: left; font-size: 48px; line-height: 1; margin: 0px 7px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline;"></span> enjoy conversations about historical figures, particularly those whose lives were dedicated to the cause of liberty. So many people today claim to be interested in the cause, but few actually live for it. Its probably for this reason that I’ve often felt more at home studying the lives of those who have gone before me than in the company of those who make it a common practice to only talk of freedom.</div>
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<span class="month" style="background: transparent; border: 0px; display: block; font-size: 14px; font-weight: 900; margin: 0px; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;">APR</span><span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">12</span></div>
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<a href="http://www.freecapitalist.com/2008/04/12/are-you-a-capitalist/" style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">Are You a Capitalist, by 1886 Standards?</a></h2>
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POSTED ON APR 12, 2008 IN <a href="http://www.freecapitalist.com/category/bol/" rel="category tag" style="background: transparent; border: 0px; color: #969696; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="View all posts in Brain-On Lounge">BRAIN-ON LOUNGE</a></div>
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Selection from “<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; text-decoration: underline; vertical-align: baseline;"><strong style="background: transparent; border: 0px; color: #1c1c1c; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Earning the Capital</strong></span>” By Rev. James W. Cole, 1886</div>
<div style="background: transparent; border: 0px; line-height: 26px; outline: 0px; padding: 0px 0px 10px; vertical-align: baseline;">
<span class="et-dropcap" style="background: transparent; border: 0px; display: block; float: left; font-size: 48px; line-height: 1; margin: 0px 7px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline;">W</span>hat is capital? Most writers on economics answer, “Capital is surplus; the storage of the labor of the brain and muscle; the overplus from the daily needs and uses of men.” If this general definition be a true one, it can apply only</div>
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<a href="http://www.freecapitalist.com/2008/02/14/francines-domain-scandal-brewing-in-utah-sate-government/" style="background: transparent; border: 0px; color: #1e73be; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><img alt="Francine’s Domain: Scandal Brewing in Utah" src="http://www.freecapitalist.com/wp-content/uploads/et_temp/Commissars3-240x240.jpg" height="240" style="background: transparent; border: 0px; height: 160px; margin: 0px; max-width: 100%; outline: 0px; padding: 0px; vertical-align: baseline; width: 160px;" width="240" /></a><br />
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<a href="http://www.freecapitalist.com/2008/02/14/francines-domain-scandal-brewing-in-utah-sate-government/" style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">Francine’s Domain: Scandal Brewing in Utah</a></h2>
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POSTED ON FEB 14, 2008 IN <a href="http://www.freecapitalist.com/category/bol/" rel="category tag" style="background: transparent; border: 0px; color: #969696; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="View all posts in Brain-On Lounge">BRAIN-ON LOUNGE</a>, <a href="http://www.freecapitalist.com/category/news-2/" rel="category tag" style="background: transparent; border: 0px; color: #969696; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="View all posts in News Stories">NEWS STORIES</a></div>
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<span class="et-dropcap" style="background: transparent; border: 0px; display: block; float: left; font-size: 48px; line-height: 1; margin: 0px 7px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline;">I</span>n Utah right now there is a scandal brewing. The scandal penetrates the highest reaches of the Utah government. The question is, <em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“Where will the buck stop?”</em> as the evidence rolls out that an entire section of Government is in need of a major overhaul. Steven Oberbeck of the Salt Lake Tribune, quoting Chuck Newton of the Financial Planning Association of Utah, <a href="http://www.sltrib.com//ci_8245728" style="background: transparent; border: 0px; color: #1e73be; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">reported yesterday</a> that<br />
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<article class="entry-content clearfix" style="line-height: 16px; padding: 0px 40px 30px;"><h1 class="main-title" style="background: transparent; border: 0px; font-size: 40px; line-height: 1em; margin: 0px 0px 12px; outline: 0px; padding: 0px 0px 5px; vertical-align: baseline;">
Francine’s Domain: Scandal Brewing in Utah</h1>
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Posted on Feb 14, 2008 in <a href="http://www.freecapitalist.com/category/bol/" rel="category tag" style="background: transparent; border: 0px; color: #333333; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="View all posts in Brain-On Lounge">Brain-On Lounge</a>, <a href="http://www.freecapitalist.com/category/news-2/" rel="category tag" style="background: transparent; border: 0px; color: #333333; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="View all posts in News Stories">News Stories</a> | <span class="comments-number" style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><a href="http://www.freecapitalist.com/2008/02/14/francines-domain-scandal-brewing-in-utah-sate-government/#respond" style="background: transparent; border: 0px; color: #333333; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">1 comment</a></span></div>
<div style="background: transparent; border: 0px; line-height: 26px; outline: 0px; padding: 0px 0px 10px; vertical-align: baseline;">
<span class="et-dropcap" style="background: transparent; border: 0px; display: block; float: left; font-size: 48px; line-height: 1; margin: 0px 7px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline;">I</span>n Utah right now there is a scandal brewing. The scandal penetrates the highest reaches of the Utah government. The question is, <em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“Where will the buck stop?”</em> as the evidence rolls out that an entire section of Government is in need of a major overhaul. Steven Oberbeck of the Salt Lake Tribune, quoting Chuck Newton of the Financial Planning Association of Utah, <a href="http://www.sltrib.com//ci_8245728" style="background: transparent; border: 0px; color: #1e73be; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">reported yesterday</a> that<span id="more-27" style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"></span> there have been enough <strong style="background: transparent; border: 0px; color: #1c1c1c; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“shocking actions”</em></strong> in recent years that he believes its highly likely that<em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><strong style="background: transparent; border: 0px; color: #1c1c1c; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“some government officials may eventually be criminally prosecuted.”</strong> </em>Mr. Oberbeck’s report in the Salt Lake Tribune touches just the tip of the iceberg.</div>
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The Department of Commerce is ultimately under the direction of Utah Governor Jon Huntsman, Jr. (R) – <em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">a politically ambitious McCain backer who has little tolerance for scandal given the import of this year’s election and his political future. </em>Huntsman<em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"> </em>is the one who appointed the highly controversial Francine Giani as the State’s Executive Director over the Department several years ago. Ms. Giani is not an attorney, has no legal background and did not have any substantial experience in executive level positions, yet she currently holds Utah’s highest regulatory position over all business activities in the State. Sources inside the state government suggest that Ms. Giani is hereself in a turf war with the Utah Attorney General’s office and will stop at nothing to cede as much power from that office as she can.</div>
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Since Ms. Giani’s appointment, her Department of Commerce has been the subject of a surprising degree of scrutiny and controversy. Many legislative leaders on both sides of the political isle have expressed <em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“disgust”</em> at how the Department’s activities have been and are being carried out by Giani and her associates. One legislator, Utah Representative Jim Bird (R-West Jordan) <a href="http://www.sltrib.com//ci_8245728" style="background: transparent; border: 0px; color: #1e73be; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">recently uncovered </a>an alarming complaint.</div>
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<span style="background: transparent; border: 0px; color: #660000; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“Ms. Giani allegedly was made aware of illegal activities taking place within the division and responded by telling employees that she didn’t care if the actions of the division were legal or not – but that employees were to perform the jobs without question.”</span></div>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Some Utahans are hoping that the current controversy will allow the public to clearly separate <em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“lip-service giving do-gooders”</em> in government positions from authentic leaders who care about citizen’s individual rights, civil liberties, small business and simple concepts such as fairness. At the core of this issue the question is, <em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“How far up the chain does the corruption go?”</em> </span><span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">In recent years the State has behaved with little concern for small business owners who find themselves entangled in the Department of Commerce’s web of scandal and corruption. One of the State’s highest elected officials recently commented:</span></div>
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<span style="background: transparent; border: 0px; color: #660000; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“Francine Giani is the single greatest threat to small business and personal liberty in the State of Utah.”</span></div>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">But, Ms. Giani has a reputation for being anti-business and anti-Mormon, both seemingly odd features of a professional Utah bureaucrat. According to several state legislators who are a bit queazy about coming public, she is so bent on accumulating power that she seems willing to demonize, ruin careers, and even create controversy if you don’t share her views. Currently in her cross-hairs appears to to be any politically influential small business owners, and any government official who doesn’t share her ideology. For the small businessman, the lifeblood of the local economy, abusive behavior by regulators such as Giani can be a matter of life or death for their businesses – which means a loss of jobs for Utahns at a time of huge economic uncertainty.</span></div>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">As news of the present scandal spreads, residents are anxiously awaiting the Governor’s response to the Giani controversy. Sources suggest the Governor feels conflicted given that he and Giani are reportedly <em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“good friends.”</em> Further, Giani is reported to have a file on each Utah executive, including Huntsman, AG Shurtleff, Lt. Gov. Herbert, etc. Not many seem willing to cross her, and most seem willing to appease. </span></div>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Over forty years ago former Fed Chairman Alan Greenspan warned,</span></div>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="background: transparent; border: 0px; color: #660000; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“The world of [regulation] is reminiscent of Alice’s Wonderland: everything seemingly is, yet apparently isn’t, simultaneously…It is a world in which the law is so vague that businessmen have no way of knowing whether specific actions will be declared illegal until they hear the judge’s verdict – after the fact.”</span> <em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">(Greenspan, Alan. Later Chairman of the Federal Reserve. Paper given at the Antitrust Seminar of the National Association of Business Economists, Cleveland, September 25, 1961.)</em></span></div>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Quiet whisperings have become all too common in Salt Lake City among government employees, elected officials, and community leaders about this rogue agency headed by an unelected, ideologically driven bureaucrat stealthily persecuting small businesses. Over the last 12-15 months Ms. Giani’s commissars in the State’s <em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Division of Securities</em> have come under the most serious scrutiny.</span><span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Allegations of corruption, incompetence, mismanagement and <em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“</em><a href="http://www.sltrib.com//ci_8174346" style="background: transparent; border: 0px; color: #1e73be; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">too many unfair prosecutions</em></a><em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“</em><a href="http://www.deseretnews.com/article/1,5143,695250590,00.html" style="background: transparent; border: 0px; color: #1e73be; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">under a cloud of controversy</a> </span>are growing relentlessly frequent and more substantial. Last week, apparently in an effort quell the unraveling of her department – Giani reportedly pressured Securities Director Wayne Klein to resign.</div>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="background: transparent; border: 0px; color: #660000; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“They obviously haven’t told me the results of the audit but I’ve heard words like [the division is in] ‘disarray’ and the ‘deeper we [the auditors] go, the deeper we need to go,’ “</span> <em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">(Representative Bird testimony last week during the Utah Legislature’s meeting of the House Business and Labor Committee.)</em></span></div>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Klein’s resignation, however, is not likely to insulate Ms. Giani from the political and legal fallout yet to come. Apparently hoping this will all blow over quickly, Ms. Giani has tried to appear disconnected recently asserting, absurdly, of Klein;</span></div>
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<span style="background: transparent; border: 0px; color: #660000; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“He has been a good director, and in terms of his background in the securities industry, there is no one better.”</span></div>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">But, detractors say that “this is her style.” Suggesting that Ms. Giani will throw anyone under the bus to focus on keeping her power (watch out Michael Hines). Rumors also persist that longtime government employees in her own department have begun reporting Giani to law enforcement, but so far no action or formal investigations have been announced. Of course, many see Giani as just one example of the problem. Wayne Klein is not only personally vindictive but has a fairly well known reputation in the legal community from his previous positions both in the Utah Attorney General’s office as well as with the State of Idaho for being a loose cannon, an unjust prosecutor, and having contempt for legal restrictions on his own activities. It makes one wonder, in light of all the information that is now coming out, how Mr. Klein was appointed with the approval of the Governor and the legislature in the first place. Apparently, any enemy of the Utah Attorney General or of Utah business in general, is all the qualification a person needs for Gov. Huntsman’s ascent to new additions to the ranks of Giani’s henchmen. </span></div>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">According to Ms. Giani’s recent statements to the press, Klein is precisely is the<em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“type”</em> of regulator she strives to appoint in her department. Yet, Klein is quite simply a commissar (listen to <a href="http://freecapitalist.com/" style="background: transparent; border: 0px; color: #1e73be; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">the Free Capitalist radio broadcast archives from August 31, 2007 </em></a>for elaboration). Specifically, he has increasingly become an embarrassment to government and legal professionals. He and his staff routinely fail to demonstrate even basic familiarity with the A-B-C’s of securities law. Reportedly, his own agenda is more important than the letter of the law and he is known to stammer and hesitate when trying to describe even the most basic federal standards for simple concepts such as what constitutes an accredited investor.</span><span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">One of Klein’s former government employers recently remarked that he, and a number of other government officials are not surprised at the recent discoveries about Klein and Giani’s philosophy of government.</span></div>
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<span style="background: transparent; border: 0px; color: #660000; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“Mr. Klein is the worst kind of loose cannon. He’s often going after someone who’s offended him, regardless of the law. He’s really only effective if someone with very strong supervisory skills watches his every move and Francine is not that capable.”</span></div>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Securities attorneys in Utah should not only be alarmed and offended at Ms. Giani’s defense of Klein, especially given his track record, but extremely diligent in working to ensure that there is serious reform in the Department. With Ms. Giani still at the helm, she’ll likely just pick another <em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“Wayne Klein”</em> to run the Division. As reported by a notable Salt Lake City attorney recently,</span></div>
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<span style="background: transparent; border: 0px; color: #660000; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“It has become common practice in Utah for knowledgeable, reputable, and highly educated attorneys to have to grovel to Giani, Klein (and their behind the scenes bulldogs in the Division of Securities). None of whom have shown much if any appreciation for the details of the law. It’s embarrassing.”</span></div>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">In 2007 a group of private citizens and business owners, fed up with the egregious behavior of an entire section of state government, began a private investigation on their own to look into the State’s activities. So far, the investigation has uncovered a remarkable cache of written documents and audio recording. The evidence includes recordings and transcripts of private meetings, official and unofficial conferences, lunch meetings, early morning meetings (as early as 6:30am at the home of one resident) and late night investigative activities (with government workers showing up to the homes of some <span style="background: transparent; border: 0px; font-style: italic; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“witnesses”</span><span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"> as late as 10:00pm).</span> </span><span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">The mounting evidence shows a disturbing pattern of Giani’s Depatment engaging in deception, incompetence, misstatement of the law, and abuse of the legal processes. Perhaps even more telling, the evidence is beginning to show a growing rift in the Department of Commerce between those public servants who want to carry out the legitimate duties of the Department and those willing to tow Giani’s line. </span><span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">The Salt Lake Tribune recently reported that it is precisely this internal rift between real public servants and self-serving bureaucrats that brought about the legislative audit working to uncover the details of this brewing scandal.</span></div>
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<span style="background: transparent; border: 0px; color: #660000; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“After hearing from several division staff members who expressed concerns about how the agency was being run, Rep. Jim Bird, R-West Jordan, late last year requested that the Legislative Auditor General’s Office audit the division.”</span></div>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">This kind of situation makes for a very unfriendly business environment and is embarrassing to everyone in government. With a formal audit underway, it appears Ms. Giani is simply buying herself time to try and get out from under the explosive details now coming to light. Consider a few embarrassing examples of the work being conducted by Ms. Cruella and her henchmen.</span></div>
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<li style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="background: transparent; border: 0px; font-family: arial; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><strong style="background: transparent; border: 0px; color: #1c1c1c; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; text-decoration: underline; vertical-align: baseline;">Wrongful Accusation of Criminal Behavior against Utah Citizens</span></strong></span></span><span style="background: transparent; border: 0px; font-family: arial; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><strong style="background: transparent; border: 0px; color: #1c1c1c; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">.</strong></span></li>
<li style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="background: transparent; border: 0px; font-family: arial; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><strong style="background: transparent; border: 0px; color: #1c1c1c; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; text-decoration: underline; vertical-align: baseline;">Misuse of the Courts and Legal Process</span></strong></span></span><span style="background: transparent; border: 0px; font-family: arial; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><strong style="background: transparent; border: 0px; color: #1c1c1c; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">.</strong></span></li>
<li style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="background: transparent; border: 0px; color: #3333ff; font-family: arial; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><strong style="background: transparent; border: 0px; color: #1c1c1c; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Lying to Government Officials.</strong></span></li>
<li style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="background: transparent; border: 0px; color: #3333ff; font-family: arial; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><strong style="background: transparent; border: 0px; color: #1c1c1c; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">General Incompetence when it comes to explaining rudiments of the law.</strong></span></li>
<li style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="background: transparent; border: 0px; color: #3333ff; font-family: arial; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><strong style="background: transparent; border: 0px; color: #1c1c1c; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Defaming Members of the Legislature who scrutinize the Department.</strong></span></li>
<li style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="background: transparent; border: 0px; color: #3333ff; font-family: arial; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><strong style="background: transparent; border: 0px; color: #1c1c1c; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Punishing Citizens with Evidence Against the Department for their Political Activity.</strong></span></li>
<li style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="background: transparent; border: 0px; color: #3333ff; font-family: arial; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><strong style="background: transparent; border: 0px; color: #1c1c1c; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Demanding “prior restraints” on Utah Citizens’ free speech, in an attempt to silence criticism of the Department’s methods in public or in the courts.</strong></span></li>
<li style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="background: transparent; border: 0px; color: #3333ff; font-family: arial; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><strong style="background: transparent; border: 0px; color: #1c1c1c; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Government employees lying to the public in order to “create” causes for investigation.</strong></span></li>
<li style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="background: transparent; border: 0px; color: #3333ff; font-family: arial; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><strong style="background: transparent; border: 0px; color: #1c1c1c; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Disseminating confidential information obtained during investigations to private sector colleagues to enrich their business efforts.</strong></span></li>
<li style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="background: transparent; border: 0px; color: #3333ff; font-family: arial; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><strong style="background: transparent; border: 0px; color: #1c1c1c; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Offering jobs and/or job referrals to witnesses who are willing to lie or distort the truth to defend the Department.</strong></span></li>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">This kind of behavior is precisely what Ronald Reagan warned America about as early as 1964 when he deplored:</span></div>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="background: transparent; border: 0px; color: #660000; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“It is time we realized that socialism can come without overt seizure of property or nationalization of private business. It matters little that you hold the title to your property or business if government can dictate policy and procedure and holds life and death power over your business. The machinery of this power already exists. Lowell Mason, former anti-trust law enforcer for the Federal Trade Commission, has written “American business is being harassed, bled and even blackjacked under a preposterous crazy quilt system of laws.” There are so many that the government literally can find some charge to bring against any concern it chooses to prosecute.”</span> <em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">(Reagan, Ronald, A Time for Choosing, Speech given October 27, 1964)</em></span></div>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Legislation has recently passed the Utah House of Representatives that would rein in the powers of the division and its director in an effort to secure more just handling of the Department’s responsibilities. However, as reported on FreeCapitalist Radio Monday February 12, 2008 this attempt to “rein in” the powers of <em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><strong style="background: transparent; border: 0px; color: #1c1c1c; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Ms. Giani and her flying monkeys</strong></em> is being received about as well as the “Wicked Witch of the West” receiving Dorothy and her ruby slippers.</span></div>
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Is Francine Giani Utah’s a villain escaping scrutiny?</div>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">For example, after Bird’s HB83 passed the Utah House, Giani defender Utah Senator Curt Bramble (R-Provo), apparently in an effort to help Giani and the Governor’s office quench the brewing controversy, strategically stalled the legislation from being considered by the State Senate indefinitely. Insiders say that Bramble also has further government/political ambitions and is hoping (along with others) to clear offices such as the Utah Attorney General’s office – using Giani as the behind the scenes power. “You watch,” says a Department of Commerce insider, “if they get their way, the AGs office will have their reputations ruined, the public turned against them, and Giani and her friends – like Bramble and Urquhart – will come riding in to the rescue, it’s really that sinister.” </span></div>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Reminiscent of something behind the iron curtain in the 1980s the outgoing commissar Klein remarked to the attorneys of one Utah businessman:</span></div>
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<span style="background: transparent; border: 0px; color: #660000; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“[Look], [p]art of the problem is that I’ve been painted in a corner because your client has gone on the radio and publicly accused us of stuff. He’s got legislators out there trying to cut our powers because what we’re doing as if he’s entirely right in what he’s doing and government is unfairly coming after him. So ordinarily we have more flexibility but where I’ve got public attacks coming in saying we’re being accused of being unfair…[interrupted].”</span></div>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Ayn Rand also famously warned us of situations like the present scandal brewing in Utah under Ms. Giani’s watch.</span></div>
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<span style="background: transparent; border: 0px; color: #660000; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“This means that a businessman has no way of knowing in advance whether the action he takes is legal or illegal, whether he is guilty or innocent. It means that a businessman has to live under the threat of a sudden, unpredictable disaster, taking the risk of losing everything he owns or being sentenced to jail, with his career, his reputation, his property, his fortune, the achievement of his whole lifetime left at the mercy of any ambitious young bureaucrat who, for any reason, public or private,may choose to start proceedings against him…It is a form of persecution practiced only in dictatorships and forbidden in every civilized code of law. It is specifically forbidden by the United States Constitution. It is not supposed to exist in the United States and it is not applied to anyone-except to businessmen.”</span><span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">(<em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Rand, Ayn. Capitalism: The Unknown Ideal, pg. 50 – from a speech given at the Ford Hall Forum, Boston, on Dec. 17, 1961)</em></span></div>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">The official audit of Ms. Giani and her staff is still under way. Potential legal action is reportedly pending against the State from private parties alleging damages in the hundreds of millions. Additional complaints are coming in from victims of the Department’s abusive handling methods including complaints against the Division of Real Estate, Licensing, Securities, and Consumer Protection. Transcripts and audio recordings of Commerce employees lying about Utah businessmen and their activities and other highly problematic behavior on the part of government employees are being delivered to government officials and media outlets. </span><span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">In the mean time, Utah citizens are getting tired of being scammed by the so-called<em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“scam busters.”</em> Another local businessman recently complained,</span></div>
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<span style="background: transparent; border: 0px; color: #660000; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“For more than two years now the Department of Commerce has been after me. They have come at me from every angle, from the Real Estate division, the Securities Division, Consumer protection etc. Every time, I’ve been able to demonstrate that they have no evidence against me and that I and my associates have done nothing wrong. Yet, the government continues to make horrible allegations, publicly bad mouth me and my colleagues and even accuse me of being a criminal to legislators, business colleagues, and some of my closest associates. All of this so that Francine Giani and her friends can “look” like they’re doing their job. They’ve got all my clients in an uproar, they’ve told this story about what my business “really is,” all truth be damned, and their efforts have cost dozens of real Utahans their jobs and essentially bankrupt me and my partners. All this and not one charge filed, not one official action taken, and not one person in government responsible. There’s not even a forum where I can defend my case, I simply have to wait until these very powerful men and women are done playing politics with me, my investors, my customers, and my business. Maybe I’ll get an apology like Mr. Teran received from the Department, <span style="background: transparent; border: 0px; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">after</span> they’ve succeeded in destroying my company.”</span></div>
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<span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">While the citizens of Utah wait for the Governor to weigh in on the issue, thank goodness for good legislators and government leaders who don’t hesitate to reach for the pail of water when the Wicked Witch comes around. </span><span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">On a side note, sources suggest that Ms. Giani may already be preparing for her exit, vying for a position as an investigative journalist (<em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Geraldo watch out!</em>) back at Utah’s local Channel 2, KUTV along side consumer watchdog Bill Gephart. If it’s true, it’s likely that Ms. Giani can serve the people of Utah better there – for certainly there’s a role for consumer watchdogs. If she does return to the media <strong style="background: transparent; border: 0px; color: #1c1c1c; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">perhaps she’ll feel less burdened, being freed from sticky things like State law, due process, fairness, etc</em></strong>. Its time for Utahns (including our Governor) to get past the old cliché of Utah being among the <em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“scam”</em>capitals of the world, and start taking a closer look at the corrupt bureaucrats in internal “scams” <strong style="background: transparent; border: 0px; color: #1c1c1c; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><em style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">irresponsibly promoting that myth</em></strong> to the detriment of good people in a good state working hard. </span><span style="background: transparent; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Once again scandal is brewing in Utah. This time it’s the government in need of systematic reform.</span></div>
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<a href="http://www.hillerickson.com/fc/wp-content/uploads/2008/02/Commissars3.jpg" style="background: transparent; border: 0px; color: #1e73be; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><img alt="Francine Giani's Domain" class="size-full wp-image-2146 " src="http://www.hillerickson.com/fc/wp-content/uploads/2008/02/Commissars3.jpg" height="1548" style="background: transparent; border: 0px none; height: auto; margin: 0px; max-width: 100%; outline: 0px; padding: 0px; vertical-align: baseline;" width="1650" /></a><br />
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Francine Giani has been the subject of repeated controversy and several corruption probes in Utah (Illustration by Jeff Brimley)</div>
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<img alt="Rick Koerber" class="avatar avatar-60 wp-user-avatar wp-user-avatar-60 alignnone photo" src="http://www.freecapitalist.com/wp-content/uploads/2013/11/rickcoinflip-60x60.jpg" height="60" style="background: transparent; border-bottom-left-radius: 30px; border-bottom-right-radius: 30px; border-top-left-radius: 30px; border-top-right-radius: 30px; border: 0px; display: block; height: auto; margin: 0px; max-width: 100%; outline: 0px; padding: 0px; vertical-align: baseline; width: auto;" width="60" /></div>
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<span style="background: transparent; border: 0px; color: #930101; font-weight: 900; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Author:</span> Rick Koerber</div>
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I am a capitalist. Contrary to what you may believe about THAT word, to me it means, “a liberty minded advocate for peace and prosperity.” In more common terms, I am a politically minded entrepreneur, dedicated to advancing capitalism as the moral revolution to sanction, restore, and complete the political achievement of the American revolution.</div>
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RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-433321465681915004.post-26606610901937356622014-08-23T05:15:00.001-06:002014-08-23T05:30:29.150-06:00'Vindicated' Rick Koerber speaks out Robert Paisola Reports Live<span style="color: #666666; font-family: helvetica, arial, sans-serif;"><span style="background-color: white; font-size: 13px; white-space: nowrap;"> Watch the video:</span></span><br />
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<span style="background-color: white; color: #222222; font-family: arial; font-size: x-small;"><a href="http://www.good4utah.com/story/d/story/vindicated-rick-koerber-speaks-out/33150/0XPOjlmhoU6Rg-pBM9CrhA#.U_h3eA09Ffs.gmail">http://www.good4utah.com/story/d/story/vindicated-rick-koerber-speaks-out/33150/0XPOjlmhoU6Rg-pBM9CrhA#.U_h3eA09Ffs.gmail</a></span><br />
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<span style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px;">SALT LAKE CITY (ABC4 News) - Calling himself a victim of government persecution, Alpine businessman Rick Koerber said he was "vindicated" Friday at a Salt Lake City news conference, one day after a federal judge dismissed charges against him.</span><br />
<br style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px; text-align: justify;" />
<span style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px;">Koerber once appeared on billboards in Utah promoting his Free Capitalist website and hosted the Free Capitalist radio show on KTKK 630 AM.</span><br />
<br style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px; text-align: justify;" />
<span style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px;">In 2009, Koerber was indicted on 25 counts including securities fraud, mail fraud, wire fraud, money laundering and tax evasion. He was accused of operating a $100 million Ponzi scheme through his Founders Capital company that allegedly owed investors $48 million.</span><br />
<br style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px; text-align: justify;" />
<span style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px;">"It is absurd to anyone who looks at the records to suggest this business was a Ponzi scheme," Koerber told reporters at the Downtown Salt Lake City Marriott, while flanked by his family and attorney Marcus Mumford. "The people I did business with were grown men and women who knew what we were doing who took some risks. We made some and we lost some and most of the people who did business with me walked away profitable."</span><br />
<br style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px; text-align: justify;" />
<span style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px;">On Thursday, Federal District Judge Clark Waddoups dismissed the charges with prejudice, meaning they cannot be filed again. Judge Waddoups threw out the case because federal prosecutors, led by Assistant U.S. Attorney Stewart Walz, missed filing deadlines and engaged in "questionable ethical conduct".</span><br />
<br style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px; text-align: justify;" />
<span style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px;">Koerber, claims he was targeted because of anti-government comments he made on his Free Capitalist radio show.</span><br />
<span style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px;">In a You Tube video from 2008, Koerber states "the Utah Department of Commerce has been a rogue agency stealthily persecuting small business in Utah for many years".</span><br />
<br style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px; text-align: justify;" />
<span style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px;">"Because of my radio show and my criticism of government bureaucrats, Francine Giani at the Utah Department of Commerce openly proclaimed in the beginning that she was encouraging this case quote at all costs," Koerber said Friday. "In this case, it turned out to the law, ethics rules and the Constitution itself."</span><br />
<br style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px; text-align: justify;" />
<span style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px;">"It is now beyond dispute that Miss Giani lied when she claimed there was a mountain of evidence she turned over to prosecutors," Koerber continued. "In fact, that supposed 20 boxes of evidence that made the news 5 years ago turned out to include empty boxes or boxes with materials from other cases that simply had my name slapped on a label over the front of them."</span><br />
<br style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px; text-align: justify;" />
<span style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px;">Giani responded with a statement, reading in part: "I am disappointed the many victims involved in this massive fraud did not receive justice. It is sad to see our jails so full of petty criminals while someone who stole people's retirement savings, homes, and futures walks free. I will not justify Rick Koerber's recent comments regarding my ethics. What I will say is that I am shocked and astounded at how easy it seems for Judge Waddoups to allow his personal dislike for one federal prosecutor to deny justice to so many victims."</span><br />
<br style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px; text-align: justify;" />
<span style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px;">Koerber said he's now employed as a paralegal but did not rule out a return to the investment business or the airwaves.</span><br />
<br style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px; text-align: justify;" />
<span style="background-color: white; color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18.200000762939453px;">"Will I be heard from? Probably," Koerber said. "Will I be back what I was doing before? I think I'm wiser. Whatever I do I hope to benefit from experience."</span>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-433321465681915004.post-13013356573506155532014-08-23T05:08:00.002-06:002014-08-23T05:20:32.005-06:00Rick Koerber walks on $48 million Ponzi scheme charges, Robert Paisola Reports Live<div id="subHeadline" style="color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 18px; font-weight: bold; margin: 0px 0px 14px; padding: 0px;">
Courts » Ruling rips apart prosecution’s tactics and dismisses the case against ‘‘Latter-day capitalist’’ Rick Koerber.</div>
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By Tom Harvey</div>
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| The Salt Lake Tribune</div>
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First Published Aug 14 2014 03:36 pm • Updated 6 hours ago</div>
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A federal judge on Thursday blasted federal prosecutors as he permanently dismissed all criminal charges against Rick Koerber, the former Utah County real estate guru who now no longer faces accusations of operating a $100 million Ponzi scheme.</div>
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In dismissing the charges, U.S. District Judge Clark Waddoups cited "the government’s pattern of neglect and dilatory conduct" as well as "several instances of questionable ethical conduct in prosecuting this case."</div>
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Rick Koerber, arriving at federal court in Salt Lake City in 2010 with wife Jewel."><img alt="(Tribune file photo)
Rick Koerber, arriving at federal court in Salt Lake City in 2010 with wife Jewel." src="http://www.sltrib.com/csp/cms/sites/dt.common.streams.StreamServer.cls?STREAMOID=LNAhYPEdPjepux3ZfMKXRc$daE2N3K4ZzOUsqbU5sYtRqRw7MW5Y_UUbIYYL0T0AWCsjLu883Ygn4B49Lvm9bPe2QeMKQdVeZmXF$9l$4uCZ8QDXhaHEp3rvzXRJFdy0KqPHLoMevcTLo3h8xh70Y6N_U_CryOsw6FTOdKL_jpQ-&CONTENTTYPE=image/jpeg" style="border: none; margin: 0px 6px 6px 0px; padding: 0px;" /></a></li>
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Rick Koerber, right, faced charges of fraud, money laundering and tax evasion."><img alt="(Francisco Kjolseth | Tribune file photo)
Rick Koerber, right, faced charges of fraud, money laundering and tax evasion." src="http://www.sltrib.com/csp/cms/sites/dt.common.streams.StreamServer.cls?STREAMOID=AzhjdBSHDNAORCKmjV$3pc$daE2N3K4ZzOUsqbU5sYts6SlZ6nlG4j_Wb0FPDifOWCsjLu883Ygn4B49Lvm9bPe2QeMKQdVeZmXF$9l$4uCZ8QDXhaHEp3rvzXRJFdy0KqPHLoMevcTLo3h8xh70Y6N_U_CryOsw6FTOdKL_jpQ-&CONTENTTYPE=image/jpeg" style="border: none; margin: 0px 6px 6px 0px; padding: 0px;" /></a></li>
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<div class="TEXT_w_Indent" style="line-height: 20px; margin-bottom: 12px; padding: 0px;">
Waddoups dismissed the case with prejudice, meaning it cannot be refiled against the man who once was seen as an investment guru who could turn home equity into big returns. But that was before his operation — known generally under the names FranklinSquires Cos. and Founders Capital — crashed in 2008, leaving investors owed about $48 million.</div>
<div class="TEXT_w_Indent" style="line-height: 20px; margin-bottom: 12px; padding: 0px;">
The five-year-old case was tossed because prosecutors violated laws that require trials within certain time limits, and they did not file timely requests for exemptions from the deadlines. It was dismissed with prejudice because Waddoups said he found the government’s conduct of the case highly problematic.</div>
<div class="TEXT_w_Indent" style="line-height: 20px; margin-bottom: 12px; padding: 0px;">
The first of three indictments against Koerber was handed up in May of 2009, and all sought to portray his operation as one of the largest financial frauds in Utah history.</div>
<div class="TEXT_w_Indent" style="line-height: 20px; margin-bottom: 12px; padding: 0px;">
They accused Koerber of running a giant Ponzi scheme that took in $100 million from investors but who then used about half that to pay back investors and make it appear the operation was profitable. In fact, prosecutors alleged, the company never was profitable.</div>
<div class="TEXT_w_Indent" style="line-height: 20px; margin-bottom: 12px; padding: 0px;">
Koerber had been facing 18 fraud, tax and money laundering charges.</div>
<div class="TEXT_w_Indent" style="line-height: 20px; margin-bottom: 12px; padding: 0px;">
Under the Speedy Trial Act, if more than 70 days pass after the charged person first appears in court without a trial or other resolution, the case must be dismissed. However, prosecutors can seek exemptions because of certain time-consuming court procedures.</div>
<div class="TEXT_w_Indent" style="line-height: 20px; margin-bottom: 12px; padding: 0px;">
Waddoups wrote in 17-page decision that the U.S. Attorney’s Office had shown neglect in failing to manage the requirements of the act.</div>
<div class="TEXT_w_Indent" style="line-height: 20px; margin-bottom: 12px; padding: 0px;">
"But in addition to this administratively dilatory conduct and pattern of neglect, the court has already found significant problems with the substantive prosecution of this case essentially amounting to ‘a pattern of widespread and continuous misconduct,’" Waddoups wrote, citing the language of another case.</div>
<br style="margin: 0px; padding: 0px;" />
<div class="TEXT_w_Indent" style="line-height: 20px; margin-bottom: 12px; padding: 0px;">
The judge at least twice has thrown out government evidence.</div>
<div class="TEXT_w_Indent" style="line-height: 20px; margin-bottom: 12px; padding: 0px;">
He found that a draft letter taken from Founders Capital records was a confidential communication between Koerber and attorneys and couldn’t be used as evidence.</div>
<div class="TEXT_w_Indent" style="line-height: 20px; margin-bottom: 12px; padding: 0px;">
But then Waddoups also said that Koerber’s constitutional rights were violated when prosecutors authorized FBI and IRS agents to interview Koerber without his attorney present.</div>
<div class="TEXT_w_Indent" style="line-height: 20px; margin-bottom: 12px; padding: 0px;">
Prosecutors argued that Koerber had agreed to the February 2009 interviews and was not represented at the time. But testimony called that latter assertion into question, and Waddoups said those sessions could not be used as evidence and he suggested much of the case was tainted as a result.</div>
<div class="TEXT_w_Indent" style="line-height: 20px; margin-bottom: 12px; padding: 0px;">
In Thursday’s decision, he sharply rebuked prosecutors for "the government’s tactic of illegally planning and conducting impermissible ex-parte interviews."</div>
<div class="TEXT_w_Indent" style="line-height: 20px; margin-bottom: 12px; padding: 0px;">
At one point in the case, Waddoups also had stated he found the government’s indictment so vague that it wouldn’t have passed muster in a civil case, a condition, he wrote in his ruling, "that has not been alleviated for the court in the intervening two years."</div>
<div class="TEXT_w_Indent" style="line-height: 20px; margin-bottom: 12px; padding: 0px;">
Marcus Mumford, Koerber’s aggressive and persistent attorney, said the ruling had been a long time coming.</div>
<div class="TEXT_w_Indent" style="line-height: 20px; margin-bottom: 12px; padding: 0px;">
"We’ve been as troubled as the court now confirms it was in what I think he calls the sordid history of the case," said Mumford, "what the court refers to as the widespread and continuous misconduct."</div>
<div class="TEXT_w_Indent" style="line-height: 20px; margin-bottom: 12px; padding: 0px;">
Mumford said Koerber would likely appear at a news conference Friday afternoon.</div>
<div class="TEXT_w_Indent" style="line-height: 20px; margin-bottom: 12px; padding: 0px;">
A spokeswoman for the U.S. Attorney’s Office said only that attorneys were reviewing the ruling and declined to comment further.</div>
<div class="TEXT_w_Indent" style="line-height: 20px; margin-bottom: 12px; padding: 0px;">
Koerber styled himself as "Latter-day capitalist," and promoted a real estate investment strategy he called the Equity Mill in which equity in a home was used to produce returns.</div>
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Hey, I'm what one might called a serial big/polygimist, I suffering the Ick factor regarding male SSM. But I really could care less about them and will support and defend SSM per my Oath to the Constitution, -[twice taken, but once is enough 'cause it is, in my opinion only rescinded by renouncing my citizenship and exiting US's borders.<br />
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But I do find it telling that those who would practicing Polygamy per their religion don't also embrace Polyandery. After four wives ? I think a one in seven duty cycle would be oh so delightful. One seventh of the . . well ya know what I mean.<br />
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Oh hell yes this Male Dominion with Female Submission must have been created by short skinny 90lb. weaklings with equal stature in their nether regions.<br />
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I always thought that overbearing, Napoleanic Personalities were both the reason for a God in the first place and most assuredly for me buddy Jesus's tossing the old and ushering in the 2nd Covenant of Good Host, Good Neighbor and Good Guest philosophy.<br />
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In short I have followed and lived the winning ways . Unlike Old Testament Living 'Christians'</div>
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6 days ago 0 likes</div>
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Thanks for putting so much thought and righteous indignation into your reply. Unfortunately, your attempt to put me in my place was full of conjecture and misrepresentation: 1) I didn't attack Jim (although I don't agree with 1000s of his post that state that all Mormons are corrupt), 2) I didn't defend the LDS church in the post, 3) I didn't tolerate corruption or dishonesty, 4) I didn't say that I was better than you--but that I was surprised that a self-proclaimed "active Mormon" would agree that all rich, white LDS members are corrupt. 5) I didn't call you to repentance.<br />
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What you failed to read was: 1) I did point out that "Utah Mormons" are no better or worse that other LDS members (or people in general). 2) ALL people have flaws. 3) Corruption is not only a Utah/Mormon issue.<br />
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Pious? Self-righteous? Petty? Tolerant of corruption? If you are getting any of that out of the words in my post, then maybe your projecting your own inter thoughts and actions on me,... or you were just trolling for an argument.</div>
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6 days ago 0 likes</div>
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Only in Utah would this happen, what a freaking joke.</div>
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2 weeks ago 13 likes</div>
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Wasn't it Judge Clark Waddoups that gave the Davis County couple a standing ovation after they bilked the school district of millions in that textbook scandal a few years back? Something is wrong here.</div>
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2 weeks ago 20 likes</div>
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<a href="http://disqus.com/Utah_anti_nazi/" style="color: black; margin: 0px; padding: 0px; text-decoration: none;" target="_blank">Mark M</a></div>
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I'd like to see anyone name one trial ever than has happened within 70 days.<br />
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Crime pays, as long as you make the crime big enough and know the right people</div>
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RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-433321465681915004.post-63140248152919051822013-08-21T02:39:00.001-06:002013-08-21T02:43:14.991-06:00Utah judge tosses evidence in Koerber alleged ‘Ponzi’ case-Federal court » Prosecutors failed to follow rules, violated constitutional rights, ruling says.<br />
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(Francisco Kjolseth | Tribune file photo) An indictment alleges that Rick Koerber used about half of the $100 million taken in from investors to pay back other investors and make it appear the operation was profitable when it was not. He denies the charges.</div>
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Utah judge tosses evidence in Koerber alleged ‘Ponzi’ case</div>
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Federal court » Prosecutors failed to follow rules, violated constitutional rights, ruling says.</div>
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By Tom Harvey</div>
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| The Salt Lake Tribune</div>
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First Published Aug 20 2013 05:17 pm • Updated 4 hours ago</div>
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A federal judge has prohibited prosecutors from using as evidence interviews former Utah County businessman Rick Koerber gave to investigators before his indictment for allegedly operating his real estate investment company as a $100-million Ponzi scheme.</div>
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U.S. District Judge Clark Waddoups ruled that prosecutors and investigators violated professional conduct rules, federal law and Koerber’s constitutional rights when they failed to contact attorneys who had represented Koerber prior to two interviews in 2009 with FBI and IRS agents.</div>
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Rick Koerber, arriving at federal court in Salt Lake City in 2010 with wife Jewel, through his attorney wants a judge to disqualify prosecutors and investigative agents in his case."><img alt="(Tribune file photo)
Rick Koerber, arriving at federal court in Salt Lake City in 2010 with wife Jewel, through his attorney wants a judge to disqualify prosecutors and investigative agents in his case." src="http://www.sltrib.com/csp/cms/sites/dt.common.streams.StreamServer.cls?STREAMOID=LNAhYPEdPjepux3ZfMKXRc$daE2N3K4ZzOUsqbU5sYtRqRw7MW5Y_UUbIYYL0T0AWCsjLu883Ygn4B49Lvm9bPe2QeMKQdVeZmXF$9l$4uCZ8QDXhaHEp3rvzXRJFdy0KqPHLoMevcTLo3h8xh70Y6N_U_CryOsw6FTOdKL_jpQ-&CONTENTTYPE=image/jpeg" style="border: none; margin: 0px 6px 6px 0px; padding: 0px;" /></a></li>
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An indictment alleges that Rick Koerber used about half of the $100 million taken in from investors to pay back other investors and make it appear the operation was profitable when it was not. He denies the charges."><img alt="(Francisco Kjolseth | Tribune file photo)
An indictment alleges that Rick Koerber used about half of the $100 million taken in from investors to pay back other investors and make it appear the operation was profitable when it was not. He denies the charges." src="http://www.sltrib.com/csp/cms/sites/dt.common.streams.StreamServer.cls?STREAMOID=AzhjdBSHDNAORCKmjV$3pc$daE2N3K4ZzOUsqbU5sYts6SlZ6nlG4j_Wb0FPDifOWCsjLu883Ygn4B49Lvm9bPe2QeMKQdVeZmXF$9l$4uCZ8QDXhaHEp3rvzXRJFdy0KqPHLoMevcTLo3h8xh70Y6N_U_CryOsw6FTOdKL_jpQ-&CONTENTTYPE=image/jpeg" style="border: none; margin: 0px 6px 6px 0px; padding: 0px;" /></a></li>
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Rick Koerber faces 18 criminal charges for his operation of FranklinSquires Cos. and related entities. The Utah County businessman hotly denies his businesses functioned as a Ponzi scheme, although the indictment alleges he used about half of the $100 million in funds the companies received to pay investors and make the operation appear profitable until it collapsed in 2008.
"><img alt="(Francisco Kjolseth | Tribune file photo)
Rick Koerber faces 18 criminal charges for his operation of FranklinSquires Cos. and related entities. The Utah County businessman hotly denies his businesses functioned as a Ponzi scheme, although the indictment alleges he used about half of the $100 million in funds the companies received to pay investors and make the operation appear profitable until it collapsed in 2008.
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Waddoups chided prosecutors for not attempting to contact the lawyers, who had represented Koerber, the chief owner of FranklinSquires Cos., after Koerber had contacted an agent and expressed a willingness to talk.</div>
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Even though defense attorney Max Wheeler had told prosecutors at some point that he was no longer retained by Koerber, Wheeler also had suggested they call other attorneys who had represented Koerber or his companies in the past, Waddoups wrote.</div>
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But prosecutors did not do that because they likely would have been told there would be no interviews, the judge wrote in the ruling, adding "the way it was approached at least allows an inference that they didn’t want to get that response, they wanted to be coy and say, can we justify saying that he’s not represented so we can interview him."</div>
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Koerber’s attorney, Marcus Mumford, characterized the decision as tossing out a key piece of evidence against his client.</div>
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"This is a significant blow to the government’s case," Mumford said.</div>
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A spokeswoman for the U.S. Attorney’s Office for Utah said she could not yet say whether the government would appeal.</div>
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"Because there are issues pending in this case, we feel it would be inappropriate to comment on Judge Waddoups’ ruling at this time," Melodie Rydalch said in an email.</div>
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The government has not revealed the extent of its evidence but it has dozens of boxes of records from the company and agents have been investigating since 2006.</div>
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The ruling is the second time Waddoups has thrown out a piece of government evidence. He ruled in 2011 that a draft of a letter to key investors in FranklinSquires could not be used against Koerber because it was part of consultation with his attorneys and there was no evidence it had been actually mailed.</div>
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Last year, the judge also dismissed two charges against Koerber, ruling the indictment was too vague in spelling out the allegations.</div>
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Koerber still faces 18 charges of fraud, money laundering and tax evasion.</div>
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Koerber was originally indicted in May 2009, with 19 additional charges added in a second indictment that November. A third indictment was sought by prosecutors after Waddoups ruled the letter could not be used as evidence.</div>
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Koerber denies he operated his FranklinSquires Cos. and related entities as a Ponzi scheme, although the indictment alleges he used about half of the $100 million in funds the companies received from investors to pay earlier investors and make the operation appear profitable until it collapsed in the real estate bust of 2008.</div>
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Koerber promoted his "Equity Milling" form of real estate investments on billboards and magazines, and through seminars that people paid several thousands of dollars to attend. He later took out billboards and went on his radio show to tweak state regulators who began probing his operations before its collapse.<br />
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<span class="h2story" style="border: 0px; color: #094672; font-size: 18px; margin: 0px; padding: 0px; text-transform: capitalize;">WATCH LIVE VIDEO</span></div>
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<span class="h2story" style="border: 0px; color: #094672; font-size: 18px; margin: 0px; padding: 0px; text-transform: capitalize;"><a href="http://www.kutv.com/news/features/local/stories/vid_4683.shtml">Http://Www.Kutv.Com/News/Features/Local/Stories/Vid_4683.Shtml</a></span></div>
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<span class="h2story" style="border: 0px; color: #094672; font-size: 18px; margin: 0px; padding: 0px; text-transform: capitalize;">Koerber Defends Actions</span><div style="border-left-color: rgb(204, 204, 204); border-left-style: solid; border-width: 0px 0px 0px 1px; margin: 0px 0px 0px 5px; padding: 5px 0px 0px 5px;">
(KUTV) He called himself the free capitalist, but the federal government said he should go to prison.<br /><br />Now the fraud case against Rick Koerber has suffered a major setback, all because of the actions of prosecutors and investigators.<br /><br />Koerber spoke out boldly after he was indicted by federal prosecutors for fraud and other charges, and said he was innocent.<br /><br />Now Judge Clark Waddoups has ruled the indictment may have been partly due to unethical conduct by federal prosecutors.<br /><br />Rod Decker explains why this case may be thrown out.<br /><br /><b>(Copyright 2013 Sinclair Broadcasting Group)</b></div>
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RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-433321465681915004.post-83292729982269143282013-05-16T21:56:00.001-06:002013-05-23T16:46:35.766-06:00Here We Go Again! Rick Koerber's Confidentiality is Violated-- By A Sitting US ATTORNEY, Stewart Young<div style="text-align: center;">
<b><span style="font-size: x-large;">THE AUDIO IS NOW LIVE..AGAIN</span></b></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjI3Gi5NjB5Hv1X4OGGlZASp7aLx59yZo8UqP9BSiMr5RZleQYIZvvK0O7xIY7-lYvBlshQh9KA_ScdW9f7zabBT3K30vMOnVdz1OzORr_v_5wcQD5wmVHiQYRjby0GjTUqGg3R03IWvYM/s1600/images.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjI3Gi5NjB5Hv1X4OGGlZASp7aLx59yZo8UqP9BSiMr5RZleQYIZvvK0O7xIY7-lYvBlshQh9KA_ScdW9f7zabBT3K30vMOnVdz1OzORr_v_5wcQD5wmVHiQYRjby0GjTUqGg3R03IWvYM/s1600/images.jpg" /></a></div>
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<b><span style="color: red; font-size: x-large;">URGENT UPDATE:</span></b></div>
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<b><span style="color: red; font-size: x-large;">BECAUSE OF THIS STORY AND THE AUDIO ASSOCIATED WITH THE COMMENTS OF ATTORNEY STEWART M. YOUNG AT BYU IN UTAH, HE HAS BEEN FORMALLY REMOVED FROM THE RICK KOERBER CASE IN UTAH USA</span></b></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi60VAjuLTRigymD-N-fzQhTxYdSHOBwqnjRLsgWzDDxhHwcrrpOL1itfThlhrEIJdPJtQ1v1WGLHz0GpBO_OR0t6mk0D5v76XVdp8099QXcoNX-xJ60cNzcOE93hHGbZi-KKVdlCAaRgE/s1600/Withdraw+of+Counsel+for+Stewart+M+Young.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi60VAjuLTRigymD-N-fzQhTxYdSHOBwqnjRLsgWzDDxhHwcrrpOL1itfThlhrEIJdPJtQ1v1WGLHz0GpBO_OR0t6mk0D5v76XVdp8099QXcoNX-xJ60cNzcOE93hHGbZi-KKVdlCAaRgE/s640/Withdraw+of+Counsel+for+Stewart+M+Young.jpg" width="492" /></a></div>
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<b><span style="color: red; font-size: large;">THERE IS GOING TO BE A BIG LAWSUIT HERE AND JUST THINK, YOUR LOCAL MEDIA IS DOING ALL IT CAN TO SUPPRESS THIS INFORMATION ALONG WITH BRIGHAM YOUNG UNIVERSITY..... JUST FOLLOW THE FACTS, THE COMMENTS AND THE MONEY. WONDER WHAT RICK KOERBER HAS TO SAY ABOUT THIS. WE WILL POST MORE INFORMATION AS IT BECOMES AVAILABLE.</span></b></div>
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<b><span style="color: red; font-size: x-large;"><br /></span></b></div>
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<b>DISCLAIMER- ALL DATA THAT IS RELEASED IS FOR MEDIA RELATED PURPOSES AND IS BEING DONE SO WITH THAT INTENT.</b><b><br /></b>
<b>Notice:</b><br />
<b>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.</b><br />
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<b>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.</b><br />
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<b>This will be posted on CNN IReport.</b><br />
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<b>Robert Paisola</b><br />
<b>CEO</b><br />
<b>Western Capital Multimedia USA</b><br />
<b><a href="http://www.robertpaisola.com/">www.RobertPaisola.com </a></b><br />
<div style="text-align: center;">
<span style="font-size: large;"><b>THE AUDIO, STORY AND CONTENTS ARE THE PROPERTY OF WESTERN CAPITAL MULTIMEDIA AND PORTIONS OF THE AUDIO ARE THE PROPERTY OF BRIGHAM YOUNG UNIVERSITY</b> legal@robertpaisola.com</span></div>
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<b>THE AUDIO FROM AUSA STEWART YOUNG (DOWNLOAD THIS NOW)</b></h2>
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<span style="background-color: white; font-family: Verdana, Geneva, Arial, Helvetica, sans-serif; text-align: start;"><b><span style="color: red; font-size: x-large;"><a href="http://tinyurl.com/StewartYoungAtBYUServer13">http://tinyurl.com/StewartYoungAtBYUServer13</a></span></b></span><br />
<span style="background-color: white; font-family: Verdana, Geneva, Arial, Helvetica, sans-serif; text-align: start;"><b><br /></b></span>
<span style="background-color: white; font-family: Verdana, Geneva, Arial, Helvetica, sans-serif; text-align: start;"><b><br /></b></span><b><span style="color: red;">IF YOU ARE INTERESTED IN EDUCATIONAL FAIR USE JUSTICE, DOWNLOAD THIS NOW AND EMAIL US THE LINK AROUND THE WORLD.</span></b><br />
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COMMENT: 5-23-13 Miami<br />
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.<br />
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COMMENT: 5-21-13 Los Angeles</div>
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This is how bad that they do not want you to hear this tape: We will never quit!</div>
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<span style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">Hello robertpaisola,</span></div>
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Kiwi6 has been notified in accordance with the Digital Millennium Copyright Act (DMCA) that some of your materials allegedly infringe upon the copyrights of others (sender email: <a href="mailto:urquiagal@law.byu.edu" style="color: #1155cc;" target="_blank">urquiagal@law.byu.edu</a>). The URLs of the allegedly infringing materials may be found at the end of this message. The DMCA is a United States copyright law that provides guidelines for online service provider liability in case of copyright infringement.</div>
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We are in the process of removing from our servers the files that allegedly infringe upon copyrights. If we did not do so, we would be subject to a claim of copyright infringement, regardless of its merits. If you feel that your files were mistakenly removed due to a DMCA request filed against you, Kiwi6 can reinstate these materials upon receipt of a DMCA Counter Notification form to <a href="mailto:support@kiwi6.com" style="color: #1155cc;" target="_blank">support@kiwi6.com</a>. If you have legal questions about this notification, you should speak with your own legal counsel. The affected URLs are listed below:</div>
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Comments of AUSA Stewart Young UTAH to BYU - <a href="http://kiwi6.com/file/32xunbjwk8" style="color: #1155cc;" target="_blank">http://kiwi6.com/file/<wbr></wbr>32xunbjwk8</a></div>
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<span style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">The Kiwi6 Team</span></div>
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<b><span style="font-size: large;">THE ISSUE</span></b></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhFAigO7FioOhPN2DEVVnrd2IwprgGQSp_uA40lZdkBdV_2JbjC-ibgfA1q5DCri7YLIQXt2zNTmE37p4SyvvOxR9T7_p-nbomX46lMfocusGaOmYHO7swX4Olq4T4IeU-v7uXbqZrOCBs/s1600/United+States+Attorney+Stuart+Young+2013.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhFAigO7FioOhPN2DEVVnrd2IwprgGQSp_uA40lZdkBdV_2JbjC-ibgfA1q5DCri7YLIQXt2zNTmE37p4SyvvOxR9T7_p-nbomX46lMfocusGaOmYHO7swX4Olq4T4IeU-v7uXbqZrOCBs/s1600/United+States+Attorney+Stuart+Young+2013.jpg" /></a></div>
<span style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;"><b>On April 18, 2013 Federal Judge Clark Waddoups chastised the government in open court for its repeated misconduct in bringing the case against Utah businessman Rick Koerber. During that hearing the Judge stated:</b></span><br />
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<b>"You're still saying you didn't say mother may I. I want you to go behind that and tell me why that makes one bit of sense under our system and our constitution." </b></div>
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<b>Further, the Judge repeated, "the government's position doesn't make any sense." </b></div>
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<b>In retaliation, Assistant United States Attorney Stewart Young recently told a BYU law class that the government's un-constitutional misconduct was acceptable because Koerber, "is a scumbag" and "Judges in our district...are not very hard on white-collar criminals [like Koerber] because they believe that th[ey] are just poor misunderstood Mormon bishops who, just happened to take $100 million." </b></div>
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<b>Further, AUSA Young lectured the law school students that "Rick Koerber "ran a ponzi-scheme" without disclosing that the case is still pending, the government has been found repeatedly guilty of illicit and unlawful conduct, and that prosecutors have admitted to the judge that they have changed their argument and now don't intend argue that Koerber actually had "any" victims, but instead that if his business continued he might have had victims and thus he should be found guilty. Young also revealed apparently unsubstantiated government theories regarding Koerber's use of trust funds and financial advisers - none of which have ever been mentioned in the charges Koerber now faces.</b></div>
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<b>Evidently, prosecutors are sore over Judge Waddoups throwing out illicit evidence obtained and used by government prosecutors to secure the original indictment and the fact that he has since begun dismissing additional charges in the now pending 3rd indictment. Young is also critical in his remarks of the FBI and praises the IRS - apparently a reference to FBI Agent Cameron Saxey and IRS Agent Ron Marker's performance in the Koerber case. Evidently, the FBI has been less than willing to prosecute Koerber for political reasons. IRS Agent Marker is the only witness the government could find to testify before the Federal Grand Jury that returned the last indictment of Koerber. </b></div>
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<b>Finally, during his presentation to the law students, AUSA Young also admits that the federal government has been "bootstrapping" allegations to bring Koerber to trial rather than relying on actual facts and allegations of direct wrong-doing. </b></div>
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<b>Legal experts consulted by Western Capital suggest that all of Young's comments may also be prosecutor misconduct in direct violation of the Utah Rules of Professional Conduct Rule 3.6(a) and 3.8 which reads: </b></div>
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<b>"A lawyer who is participating or has participated in the investigation or litigation of a matter shall not make [] extrajudicial statement..."</b></div>
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<b>It remains to be seen how Judge Waddoups will react to AUSA Young's vocal contempt and misconduct before law students at Brigham Young University. Especially in light of the government's pattern of criticism of his decisions. For example, former US Attorney Tolman's statement to the press that Waddopus has been "inappropriately light" in sentencing certain defendants, such as Susan Russ. The United States's Attorneys Office has also been critical of Judge Waddoups regarding the Sister Wive's lawsuit, the State / Federal land disputes, and his "astounding" criticism of the federal government and the FBI in an OKC bombing case. </b></div>
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<b>See recording at: 48:17; 48:42; 57:34; 1:12:36; 1:13:08; </b><br />
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THE AUDIO FILE LINK<br />
<b style="color: black; font-family: 'Times New Roman'; font-size: medium; text-align: center;"><span style="color: red; font-size: x-large;"><a href="http://tinyurl.com/StewartYoungAtBYUServer13">http://tinyurl.com/StewartYoungAtBYUServer13</a></span></b><br />
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RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-433321465681915004.post-50838598529131494182012-11-14T20:30:00.000-07:002012-11-14T20:55:32.972-07:00Rick Koerber of Franklin Squires asks US Federal Judge Clark Waddups (Utah) to toss interview with agents<span style="font-family: Georgia, 'Times New Roman', Times, serif; font-size: 36px; font-weight: bold;">Rick Koerber of Franklin Squires </span><br />
<span style="font-family: Georgia, 'Times New Roman', Times, serif; font-size: 36px; font-weight: bold;">asks US Federal Judge Clark Waddups (Utah) to toss interview with agents</span><br />
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Charges » Accused of massive fraud, Utah businessman claims investigators violated his rights.</div>
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By Tom Harvey</div>
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| The Salt Lake Tribune</div>
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First Published 1 minute ago • Updated 1 minute ago</div>
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Rick Koerber, the Utah County businessman facing charges that he ran his real estate investment company as a Ponzi scheme, tried to convince a federal judge Wednesday that he was improperly interviewed by federal agents before he was indicted by a grand jury.</div>
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At issue is whether Koerber was represented by an attorney at the time of the February 2009 interviews and, if so, whether the FBI and IRS agents should have conducted them without Koerber’s counsel being present.</div>
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Koerber’s current attorney, Marcus Mumford, has told U.S. District Judge Clark Waddoups that the interviews violated Koerber’s rights and federal rules, and he wants any evidence obtained from them to be barred from use by prosecutors who are pursuing 18 counts of fraud, money laundering and tax charges against Koerber.</div>
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In testimony Wednesday, Koerber said he was represented at the time by Salt Lake City criminal defense attorney Max Wheeler. That contradicted earlier testimony in which a former state attorney who was working with federal investigators said Wheeler told her that he no longer represented Koerber after he had failed to pay his legal bills.</div>
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Koerber said Wheeler did represent him, although he testified he had been unable to contact the attorney from before the first interview on Feb. 13, 2009, until April of that year, when he was told he would be indicted and Wheeler ended their relationship.</div>
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"I had not been able to speak directly to Max," Koerber said, although he added that he had talked to two other attorneys in Wheeler’s office and believed they also represented him.</div>
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Waddoups continued the hearing until late November to give Mumford time to call Wheeler as a witness.</div>
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Previously, FBI Special Agent Cameron Saxey had testified that Koerber had first proposed that he meet with investigators but that members of the U.S. Attorney’s Office had first recommended against a meeting but later agreed after they were told Koerber was not represented by an attorney.</div>
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Koerber also testified that he was fearful during the meetings that he would be arrested and that when a question arose about whether he was represented by Wheeler, he declined to abort one of the interviews and leave the FBI offices in Salt Lake City.</div>
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<b>"I said, ‘You guys have the badges, I’ll do what you say,’ " </b>Koerber testified.<br />
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Koerber was originally indicted on three counts in May 2009, with 19 additional charges added in a second indictment that November. A third indictment was sought by prosecutors after Waddoups tossed out a key piece of evidence from the first two.</div>
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The indictments allege Koerber’s real estate investment companies were operated as a Ponzi scheme in which about half of the $100 million they took in were used to make them appear profitable when they were not.</div>
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Koerber denies the charges. No trial date has been set.</div>
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<span style="color: #333333; font-family: Georgia, Times New Roman, Times, serif;"><span style="font-size: 14px; line-height: 20px;"><b>OUR COMMENTARY- AMERICA- WE HAVE SEEN THE THOUSANDS OF PAGES OF EVIDENCE. THIS CASE IS FUNDAMENTALLY FLAWED. THERE COMES A TIME WHEN YOU HAVE TO LOOK AT THE EVIDENCE AND SIMPLY SAY.. THINGS DO NOT ADD UP. MANY OF YOU KNOW THAT WE WERE ONE OF THE MOST VOCAL CRITICS OF RICK KOERBER AND FRANKLIN SQUIRES, BUT THE ONLY WAY THIS ALL WOULD ADD UP TO A CONVICTION IS IF WE WERE LIVING IN A COMMUNIST COUNTRY. THERE HAVE BEEN SO MANY MISTAKES THAT IF THIS GOES TO TRIAL, IT WILL BE WORLD NEWS DAILY. @RobertPaisola @UtahNewsZone @WorldNewsZone</b></span></span></div>
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RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0Salt Lake City, UT, USA40.7607793 -111.891047440.5683443 -112.2069044 40.953214300000006 -111.57519040000001tag:blogger.com,1999:blog-433321465681915004.post-42405952756342088002011-09-30T02:30:00.002-06:002011-09-30T02:39:14.282-06:00Feds file new indictment in Koerber investment fraud case , Colaboration by Robert Paisola WC Media USA<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEikrRfuAYVYEEY8wrxul6QR-lL3j3uP7BJnqQfeWmhPuH8MoFe3Jq2PnBAuwX01X1G2n0kXqpaDe59lmj91SFK04VuY-_CukMzGVRMdZ7CcoI020Vj4K4R5qApLn2ftsv2NezyRjELZMg0/s1600/1074151_300.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEikrRfuAYVYEEY8wrxul6QR-lL3j3uP7BJnqQfeWmhPuH8MoFe3Jq2PnBAuwX01X1G2n0kXqpaDe59lmj91SFK04VuY-_CukMzGVRMdZ7CcoI020Vj4K4R5qApLn2ftsv2NezyRjELZMg0/s200/1074151_300.jpg" width="200" /></a></div>Before you read this, please read our statement:<br />
<a href="http://franklinsquires.blogspot.com/2011/08/our-public-statement-on-c-rick-koerber.html">http://franklinsquires.blogspot.com/2011/08/our-public-statement-on-c-rick-koerber.html</a><br />
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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<br />
<a href="http://www.justice.gov/usao/ut/caseupd/documents/koerber%20superseding%20indictment.pdf">http://www.justice.gov/usao/ut/caseupd/documents/koerber%20superseding%20indictment.pdf</a><br />
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<span style="font-size: medium;">"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." </span><br />
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<span style="font-size: medium;"></span>The Official United States Justice Department Statement <br />
<a href="http://www.justice.gov/usao/ut/press/releases/Koerber%20second%20ss%20indictment%20statement.pdf">http://www.justice.gov/usao/ut/press/releases/Koerber%20second%20ss%20indictment%20statement.pdf</a><br />
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The Salt Lake Tribune<br />
Published: September 29, 2011 08:48PM<br />
Updated: September 29, 2011 11:53PM <br />
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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. <br />
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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.<br />
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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.<br />
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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.<br />
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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.<br />
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“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.”<br />
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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.<br />
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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.<br />
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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.<br />
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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.<br />
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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.<br />
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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.<br />
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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.<br />
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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.<br />
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Koerber’s attorney, Marcus Mumford, contends the government has no evidence that Koerber promised investors one thing and did something else.<br />
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mrogers@sltrib.com <br />
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Twitter: @mrogers_trib<br />
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Koerber partner faces tax charge <br />
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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.<br />
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This is another Article on this Matter:<br />
Utah County businessman indicted in federal court, again <br />
Story<br />
Discussion<br />
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Jim Dalrymple - Daily Herald | Posted: Friday, September 30, 2011 12:01 am | No Comments Posted<br />
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SALT LAKE CITY -- A federal grand jury has returned a second superseding indictment against a Utah County businessman accused of tax fraud.<br />
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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.<br />
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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.<br />
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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.<br />
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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.<br />
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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.<br />
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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.<br />
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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.<br />
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Copyright 2011 Daily Herald. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.<br />
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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<br />
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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.<br />
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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.<br />
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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.<br />
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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.<br />
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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.<br />
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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.<br />
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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.<br />
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"We'll be interested in how the government changes its theory here," he said. "We expect that it will be faulty."<br />
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Koerber's next hearing is scheduled for Oct. 7.<br />
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Copyright 2011 Daily Herald. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.<br />
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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 RydalchRobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0Las Vegas, NV, USA36.114646 -115.1728160000000135.9816575 -115.34909250000001 36.247634500000004 -114.99653950000001tag:blogger.com,1999:blog-433321465681915004.post-57215582883696766492011-08-02T20:16:00.000-06:002011-08-02T20:16:23.987-06:00Our Public Statement on The C Rick Koerber Federal Court Decision, Robert Paisola Reports<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZTZnL9J83zoo2ablHA8IJj0es77ISjXoE3F3lPZdVqbWl_5Xhp0u1FvbGoLBmxG-iESvjGQTircxJeJ2sbDYzuJYhqACHhsGSQAm1rhkMSo8zTljurpHTnZcGPLKGQDoLBEgOkQkvP4g/s1600/8c7fd2b2-b2cc-46a2-b314-ac0a57c00efeIMG_2155-2.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="256" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZTZnL9J83zoo2ablHA8IJj0es77ISjXoE3F3lPZdVqbWl_5Xhp0u1FvbGoLBmxG-iESvjGQTircxJeJ2sbDYzuJYhqACHhsGSQAm1rhkMSo8zTljurpHTnZcGPLKGQDoLBEgOkQkvP4g/s320/8c7fd2b2-b2cc-46a2-b314-ac0a57c00efeIMG_2155-2.jpg" width="320" /></a></div><br />
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To our friends in the media and around the world:<br />
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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."<br />
To your success,<br />
The Western Capital Team<br />
Las Vegas Nevada USA<br />
<br />
From The Salt Lake Tribune<br />
<br />
Watch the interview with Rick Koerber and KUTV's Brian Mullahy<br />
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<iframe width="425" height="349" src="http://www.youtube.com/embed/CM_NlweZqno" frameborder="0" allowfullscreen></iframe><br />
<br />
Watch the interview with Robert Paisola and Rick Koerber (Copyright 2011) <br />
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<iframe width="425" height="349" src="http://www.youtube.com/embed/ed5PSNjKWrs" frameborder="0" allowfullscreen></iframe><br />
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Koerber's Statement and Comments<br />
<h6 class="uiStreamMessage" data-ft="{"type":1}"><span style="font-size: large;"><span class="messageBody" data-ft="{"type":3}">"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"</span></span></h6><h6 class="uiStreamMessage" data-ft="{"type":1}"><span style="font-size: large;"><span class="messageBody" data-ft="{"type":3}"> </span></span></h6><div class="byline"> <div class="BYLINE_1" style="text-transform: uppercase;"><span class="author vcard"><span class="fn">By Tom Harvey</span></span></div><div class="BYLINE_2"><span class="source-org vcard"><span class="org fn"> The Salt Lake Tribune</span></span></div></div><div class="TEXT_w_Indent"> 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.</div><div class="TEXT_w_Indent"><br />
</div><div class="TEXT_w_Indent"> 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.</div><div class="TEXT_w_Indent"><br />
</div><div class="TEXT_w_Indent"> 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.</div><div class="TEXT_w_Indent"><br />
</div><div class="TEXT_w_Indent"> 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.</div><div class="TEXT_w_Indent"> "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."</div><div class="TEXT_w_Indent"><br />
</div><div class="TEXT_w_Indent"> 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.</div><div class="TEXT_w_Indent"><br />
</div><div class="TEXT_w_Indent"> 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.</div><div class="TEXT_w_Indent"><br />
</div><div class="TEXT_w_Indent"> "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.</div><div class="TEXT_w_Indent"><br />
</div><div class="TEXT_w_Indent"> 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.</div><div class="TEXT_w_Indent"><br />
</div><div class="TEXT_w_Indent"> Mumford contends the government has no evidence that Koerber promised investors one thing and did something else.</div><h6 class="uiStreamMessage" data-ft="{"type":1}"><span style="font-size: large;"><span class="messageBody" data-ft="{"type":3}"> </span></span></h6>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-433321465681915004.post-47407803225931258642010-01-28T02:52:00.001-07:002010-01-28T02:55:21.715-07:00Claud 'Rick' Koerber carries on despite Ponzi scheme charges, Robert Paisola Reports<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiH64Y_SepoOu_USDmglrTsrTEF4ihYLaPShA3sgva7x0i-yhyphenhyphenvsZnvQO0gLcm2rGHVxUiFryq3iKMVS0EE8qGQWeLtKygVPGP63Qrsd1wi1P1qvbgDpsh-lb-hTbFrFEQmLZ59CwoeS4c/s1600-h/2345100.jpg"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 400px; height: 267px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiH64Y_SepoOu_USDmglrTsrTEF4ihYLaPShA3sgva7x0i-yhyphenhyphenvsZnvQO0gLcm2rGHVxUiFryq3iKMVS0EE8qGQWeLtKygVPGP63Qrsd1wi1P1qvbgDpsh-lb-hTbFrFEQmLZ59CwoeS4c/s400/2345100.jpg" alt="" id="BLOGGER_PHOTO_ID_5431726743499429122" border="0" /></a><br /><p>HIGHLAND — It's clear, just from the words he uses, that the line has been drawn in the sand.</p> <p>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.</p> <p>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.</p> <p>"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."</p> <p>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.</p> <p>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.</p> <p>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.</p> <p>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.</p> <p>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.</p> <p>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.</p> <p>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."</p> <p>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.</p> <p>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.</p> <p>He believes the company would have gained back what it lost, if not for the disruption and controversy caused by the indictment.</p> <p>"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."</p> <p>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.</p> <p>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.</p> <p>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.</p> <p>"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."</p><p><br /></p><p>COMPLIMENTS OF THE DESERET NEWS<br /></p>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com4tag:blogger.com,1999:blog-433321465681915004.post-62607087111675465152010-01-21T11:28:00.003-07:002010-01-21T11:32:50.754-07:00Re-Launching Free Capitalist Radio : FreeCapitalist Daily, by Rick Koerber , Robert Paisola Reports<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgwf5EfDFiXKmI8AXNMY97wI12B0arvCR0_tV58iIpW9VSrG-If-4pZSmNhYTamlcfCVJmMq9jNTXW5dH6pCD0lRWrBROl5AzhnM4DT11AZU94R3kntxLRBTl0P_EbbYd9RVh7vgmVCgwA/s1600-h/fcp-9.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 300px; height: 250px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgwf5EfDFiXKmI8AXNMY97wI12B0arvCR0_tV58iIpW9VSrG-If-4pZSmNhYTamlcfCVJmMq9jNTXW5dH6pCD0lRWrBROl5AzhnM4DT11AZU94R3kntxLRBTl0P_EbbYd9RVh7vgmVCgwA/s400/fcp-9.jpg" alt="" id="BLOGGER_PHOTO_ID_5429262600260999170" border="0" /></a><br />Re-Launching Free Capitalist Radio<br /><br />January 21, 2010 by FCD Administrator <br />Filed under Current, Featured, Principle 13<br /><br /><br />Re-Launching Free Capitalist Radio. Episode Theme : The Project, Basic Principles of Capitalism, and a Tribute to Dr. W. Cleon Skousen.<br /><br />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.<br /><br /><a href="http://www.freecapitalistdaily.com/2010/01/re-launching-free-capitalist-radio/1078">http://www.freecapitalistdaily.com/2010/01/re-launching-free-capitalist-radio/1078</a>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com1tag:blogger.com,1999:blog-433321465681915004.post-50208188877081902812009-11-12T17:37:00.011-07:002009-11-12T18:37:01.028-07:00EXCLUSIVE- THE RICK KOERBER 22 COUNT INDICTMENT LIVE! Robert Paisola Reports<div style="text-align: center; font-weight: bold;"><span style="font-size:180%;"><span style="color: rgb(153, 0, 0);">Worldwide EXCLUSIVE </span>
<br /></span></div><div style="text-align: center;"><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://collegejolt.com/wp-content/uploads/2009/03/ireport_art.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 292px; height: 219px;" src="http://collegejolt.com/wp-content/uploads/2009/03/ireport_art.jpg" alt="" border="0" /></a>
<br /><div style="text-align: left; font-weight: bold;">For Immediate Release
<br />CNN I REPORT
<br />ROBERT PAISOLA REPORTS LIVE
<br />FOR WESTERN CAPITAL MULTIMEDIA
<br />Los Angeles, California November 12, 2009 1:00 PM PST
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<br /></div><span style="font-weight: bold;"><a href="http://mycollector.com/Rick%20Koerber%2022%20Count%20Superseding%20Indictment%20CNN%20Atlanta.pdf">DOWNLOAD THE FULL INDICTMENT HERE!</a> </span>
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<br />To our friends around the world:
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<br />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!
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<br />This is the document that was obtained from the United States Attorneys Communications Liaison:
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<br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg_Ap8r0ggXnwUCRdkxX65es0viqQLjQa2JtSiEYXAMyb9FBWFBf-JH6uoOhEDnfFLuG3KTS0TUAeG9TBRadAOWGr5aDpQZLkExPPdB7R8V-JcJU-M6xrUeNC0k7nuoqbTC1kSIJEP774w/s1600-h/Rick+Koerber+Press+Release+11-09_Page_1.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 309px; height: 400px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg_Ap8r0ggXnwUCRdkxX65es0viqQLjQa2JtSiEYXAMyb9FBWFBf-JH6uoOhEDnfFLuG3KTS0TUAeG9TBRadAOWGr5aDpQZLkExPPdB7R8V-JcJU-M6xrUeNC0k7nuoqbTC1kSIJEP774w/s400/Rick+Koerber+Press+Release+11-09_Page_1.jpg" alt="" id="BLOGGER_PHOTO_ID_5403382298277216498" border="0" /></a><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiqK9EtIVU8UMP2UoG5hvqKFTq9ae8BjNU8goa8jpwZIYhfl_FBZurxXtj-FSrbkj-axGH5oN6H8Nd3h0LhYEBL_xqF8IDlmwlcITtY8kLVy5BUJR2PZR-CPCqRu4hACuZWpoZ4Rak4kk0/s1600-h/Rick+Koerber+Press+Release+11-09_Page_2.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 309px; height: 400px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiqK9EtIVU8UMP2UoG5hvqKFTq9ae8BjNU8goa8jpwZIYhfl_FBZurxXtj-FSrbkj-axGH5oN6H8Nd3h0LhYEBL_xqF8IDlmwlcITtY8kLVy5BUJR2PZR-CPCqRu4hACuZWpoZ4Rak4kk0/s400/Rick+Koerber+Press+Release+11-09_Page_2.jpg" alt="" id="BLOGGER_PHOTO_ID_5403382418862430018" border="0" /></a>
<br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjoL1QZXi4AxcNrpcfd5PD-F74OM9G86iXsRErYkCTrDy8fuFv-lHjRjBaB_HyPMC7W9TPuwRuFmi1UUMlEoFjE9s_60J7IsBrYw8fP-nzSmYWY8zBhAdxM5er0scfMhCdkCpBVnkESdfQ/s1600-h/Rick+Koerber+Press+Release+11-09_Page_3.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 309px; height: 400px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjoL1QZXi4AxcNrpcfd5PD-F74OM9G86iXsRErYkCTrDy8fuFv-lHjRjBaB_HyPMC7W9TPuwRuFmi1UUMlEoFjE9s_60J7IsBrYw8fP-nzSmYWY8zBhAdxM5er0scfMhCdkCpBVnkESdfQ/s400/Rick+Koerber+Press+Release+11-09_Page_3.jpg" alt="" id="BLOGGER_PHOTO_ID_5403382554740188498" border="0" /></a>
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<br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg1hC9a-6zut34kwMNLXC-AHh3S7-HJSMFIdpKY1mzUvaSarkHUNAzBaxNjhhMqBqS4CiOu7YKQXknxabCV4L57ac6iHDiPkr1Z2ds8EUND4WOr3MAe5LYseEImyOJLq3rN7r4cOyz54gs/s1600-h/Rick+Koerber+Press+Release+11-09_Page_4.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 309px; height: 400px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg1hC9a-6zut34kwMNLXC-AHh3S7-HJSMFIdpKY1mzUvaSarkHUNAzBaxNjhhMqBqS4CiOu7YKQXknxabCV4L57ac6iHDiPkr1Z2ds8EUND4WOr3MAe5LYseEImyOJLq3rN7r4cOyz54gs/s400/Rick+Koerber+Press+Release+11-09_Page_4.jpg" alt="" id="BLOGGER_PHOTO_ID_5403389043564407714" border="0" /></a>
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<br />After going through many layers of government, we were able to get a copy for YOU, the American Public to review!
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<br />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?
<br />
<br /><span style="font-weight: bold;"><a href="http://mycollector.com/Rick%20Koerber%2022%20Count%20Superseding%20Indictment%20CNN%20Atlanta.pdf">DOWNLOAD THE FULL INDICTMENT HERE!</a>
<br />
<br />Send comments to <a href="mailto:Confidential@FRANKLINSQUIRESLAWSUIT.COM">Confidential@FRANKLINSQUIRESLAWSUIT.COM </a>
<br />
<br />THE TEXT FOR OUR FRIENDS AT GOOGLE!
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mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast;} .MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} .MsoPapDefault {mso-style-type:export-only; margin-bottom:10.0pt; line-height:115%;} @page Section1 {size:596.15pt 775.65pt; margin:45.0pt 45.0pt 0in 45.0pt; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} </style> <![endif]--><!--[if gte mso 9]><xml> <o:shapedefaults ext="edit" spidmax="1030"> </xml><![endif]--><!--[if gte mso 9]><xml> <o:shapelayout ext="edit"> <o:idmap ext="edit" data="1"> </o:shapelayout></xml><![endif]--> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="111"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM14" style=""><span style="font-size: 13.5pt; color: black;">F1L..ED <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="218"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style=""><span style="font-size: 13.5pt;">U.S. DiSTRICT COURT <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="511"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM1" style=""><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: black;">BRETI'L. TOLMAN, United States Attorney (#8821) STEWART C. WALZ, Assistant United States Atton¥OO't1tml74)) </span><span style="font-size: 14.5pt; font-family: "Times New Roman","serif"; color: black;">P 4: 43 </span><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: black;">TREY MAYFIELD, Assistant United States Attorney </span><i><span style="font-size: 11.5pt; font-family: "Times New Roman","serif"; color: black;">(PrOVisionally Admitted) </span></i><span style="font-size: 11.5pt; font-family: "Times New Roman","serif"; color: black;"><o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <p class="Default"><!--[if gte vml 1]><v:shapetype id="_x0000_t202" coordsize="21600,21600" spt="202" path="m,l,21600r21600,l21600,xe"> <v:stroke joinstyle="miter"> <v:path gradientshapeok="t" connecttype="rect"> </v:shapetype><v:shape id="_x0000_s1026" type="#_x0000_t202" style="'position:absolute;" wrapcoords="0 0" allowincell="f" filled="f" stroked="f"> <v:textbox> <![if !mso]> <table cellpadding="0" cellspacing="0" width="100%"> <tr> <td><![endif]> <div> <p class="MsoNormal" style="'margin-bottom:0in;margin-bottom:.0001pt;"><span style="'font-size:12.0pt;font-family:"><o:p> </o:p></span></p> <table class="MsoNormalTable" border="1" cellspacing="0" cellpadding="0" style="'border-collapse:collapse;mso-table-layout-alt:fixed;border:none;"> <tr style="'mso-yfti-irow:0;mso-yfti-firstrow:yes;height:15.1pt'"> <td width="300" colspan="7" valign="top" style="'width:225.35pt;border:none;"> <p class="Default"><span style="'font-size:11.0pt;font-family:">Attorneys for the United States ofAmerica <o:p></o:p></span></p> </td> <td width="39" colspan="3" style="'width:29.0pt;border:none;padding:0in"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.0pt;font-family:">. <o:p></o:p></span></p> </td> <td width="172" colspan="3" valign="top" style="'width:128.75pt;border:none;"> <p class="Default"><span style="'font-size:11.0pt;font-family:">[::. </span><span style="'font-size:10.0pt;font-family:">:F;;":-~ </span><span style="'font-size:14.0pt;font-family:">:::F </span><span style="'font-size:10.0pt'">L: :,\: <o:p></o:p></span></p> </td> </tr> <tr style="'mso-yfti-irow:1;height:27.6pt'"> <td width="300" colspan="7" valign="top" style="'width:225.35pt;border:none;"> <p class="Default"><span style="'font-size:11.0pt;font-family:">185 South State Street, Suite 300 Salt Lake City, Utah 84111 <o:p></o:p></span></p> </td> <td width="39" colspan="3" valign="top" style="'width:29.0pt;border:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'color:windowtext'"><o:p> </o:p></span></p> </td> <td width="172" colspan="3" style="'width:128.75pt;border:none;padding:0in"> <p class="Default"><span style="'font-size:14.0pt;font-family:">i:'\'(:~;XT,ijTy:~::fC~C-'-<o:p></o:p></span></p> </td> </tr> <tr style="'mso-yfti-irow:2;height:13.5pt'"> <td width="300" colspan="7" style="'width:225.35pt;border:none;padding:0in"> <p class="Default"><span style="'font-size:11.0pt;font-family:">Telephone: (801) 524-5682 <o:p></o:p></span></p> </td> <td width="39" colspan="3" valign="top" style="'width:29.0pt;border:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'color:windowtext'"><o:p> </o:p></span></p> </td> <td width="172" colspan="3" valign="top" style="'width:128.75pt;border:none;"> <p class="Default"><span style="'color:windowtext'"><o:p> </o:p></span></p> </td> </tr> </table> </div> <![if !mso]></td> </tr> </table> <![endif]></v:textbox> <w:wrap type="through" anchorx="page" anchory="page"> </v:shape><![endif]--><!--[if !vml]--><img src="file:///C:/Users/TRUMP-%7E1/AppData/Local/Temp/msohtmlclip1/02/clip_image001.gif" alt="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 " shapes="_x0000_s1026" align="left" height="125" hspace="12" width="568" /><!--[endif]--><span style="color: windowtext;"><o:p></o:p></span></p> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="314"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM15" style="text-align: center; line-height: 28.3pt;" align="center"><span style="font-size: 11pt;">IN THE UNITED STATES DISTRICT COURT DISTRICT OF UTAH, CENTRAL DIVISION <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="283"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM16" style="text-align: justify;"><span style="font-size: 11pt;">UNITED STATES OF AMERICA, <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="111"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM16" style="text-align: justify;"><span style="font-size: 11pt;">Plaintiff, <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="65"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM16" style="text-align: justify;"><span style="font-size: 12.5pt;">v. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="235"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM16" style="text-align: justify; line-height: 13.9pt;"><span style="font-size: 11pt;">CLAUD </span><span style="font-size: 12.5pt;">R. </span><span style="font-size: 11pt;">KOERBER </span><span style="font-size: 11.5pt;">aJkJa </span><span style="font-size: 11pt;">RICK KOERBER, <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="124"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style="text-align: justify;"><span style="font-size: 11pt; color: windowtext;">Defendant. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="242"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM16" style=""><span style="font-size: 11pt;">Case No. 2:09-CR-00302-TS <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="267"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM16" style=""><span style="font-size: 11pt;">SUPERSEDING INDICTMENT <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="311"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style=""><span style="font-size: 11pt; color: windowtext;">VIO. 18 U.S.C. </span><span style="font-size: 11.5pt; color: windowtext;">§ </span><span style="font-size: 11pt; color: windowtext;">1341 (Mail Fraud); 15 <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="291"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM1" style=""><span style="font-size: 11pt;">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. </span><span style="font-size: 11.5pt;">§ </span><span style="font-size: 11pt;">1343 (Wire Fraud); 18 U.S.C. </span><span style="font-size: 11.5pt;">§ </span><span style="font-size: 11pt;">1957 (Money Laundering Transactions); 26 <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="242"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style=""><span style="font-size: 11pt; color: windowtext;">U.S.C. §-7201 (Tax Evasion) <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="304"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style="line-height: 28.4pt;"><span style="font-size: 11pt; color: windowtext;">The Grand Jury charges: </span><b><span style="font-size: 11.5pt; font-family: "Times New Roman","serif"; color: windowtext;">The Defendant and </span></b><span style="font-size: 11.5pt; font-family: "Times New Roman","serif"; color: windowtext;">His Businesses </span><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">At all times relevant to this indictment: <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="662"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style=""><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;"><o:p> </o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="612"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style=""><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">1. Defendant CLAUD </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif"; color: windowtext;">R. </span><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">KOERBER (a.k.a. RlCK KOERBER) was an individual </span><span style="font-size: 11.5pt; color: windowtext;">with </span><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">decision making authority over several businesses located in Utah. <o:p></o:p></span></p> <p class="Default" style=""><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;"><o:p> </o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="629"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style=""><span style="font-size: 10.5pt; font-family: "Times New Roman","serif"; color: windowtext;">2. Founders </span><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">Capital, LLC </span><span style="font-size: 10.5pt; font-family: "Times New Roman","serif"; color: windowtext;">(Founders </span><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">Capital) </span><span style="font-size: 10.5pt; font-family: "Times New Roman","serif"; color: windowtext;">was a Utah </span><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">Limited Liability Company fonned in or around April 2005 and associated with Defendant KOERBER. Founders Capital <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <p class="Default"><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;"><o:p> </o:p></span></p> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="624"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM5" style="page-break-before: always;"><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">received investment monies, sometimes termed as loans, from victims of the scbeme and artifice to defraud alleged below. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="590"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM16" style="line-height: 28.55pt;"><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">3. . Franklin Squires Investments, LLC, and Franklin Squires Companies, LLC, were Utah limited liability companies associated with Defendant KOERBER and Founders Capital. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <p class="Default"><span style="color: windowtext;"><o:p> </o:p></span></p> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="303"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM6" style="text-align: center;" align="center"><b><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">The Scheme and Artifice to Defraud </span></b><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";"><o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="659"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style=""><span style="font-size: 11.5pt; font-family: "Times New Roman","serif"; color: windowtext;"><o:p> </o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="625"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style=""><span style="font-size: 11.5pt; font-family: "Times New Roman","serif"; color: windowtext;">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 </span><span style="font-size: 8.5pt; font-family: "HiddenHorzOCl","sans-serif"; color: windowtext;">th~ </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif"; color: windowtext;">scheme to defraud, Defendant KOERBER used the United States mails, interstate wire transmissions, and the facilities and means ·of interstate commerce. <o:p></o:p></span></p> <p class="Default" style=""><span style="font-size: 11.5pt; font-family: "Times New Roman","serif"; color: windowtext;"><o:p> </o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="612"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style=""><span style="font-size: 11.5pt; font-family: "Times New Roman","serif"; color: windowtext;">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." </span><span style="font-size: 11pt; color: windowtext;">It </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif"; color: windowtext;">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<o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <p class="Default"><span style="font-size: 11.5pt; font-family: "Times New Roman","serif"; color: windowtext;"><o:p> </o:p></span></p> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="53"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM14" style=""><span style="font-size: 6.5pt;">...•. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="626"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM5" style=""><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">Hill Erickson LLC (Hill Erickson), and New Castle Holdings LLC (New Castle), for the purpose ofacquiring real property for use in the "Equity Mill." <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="627"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM7" style="page-break-before: always;"><span style="font-size: 11pt; font-family: "Times New Roman","serif";">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 <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="269"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM5" style=""><span style="font-size: 11pt; font-family: "Times New Roman","serif";">.investors and potential investors. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="621"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM7" style=""><span style="font-size: 11pt; font-family: "Times New Roman","serif";">7. </span><span style="font-size: 11.5pt;">It </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">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. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="598"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style="line-height: 28.3pt;"><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">8. </span><span style="font-size: 11pt; color: windowtext;">It </span><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">was further a part ofthe scheme and artifice to defraud that the Defendant. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="628"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM14" style="line-height: 28.3pt;"><span style="font-size: 11pt; font-family: "Times New Roman","serif";">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. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="517"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style="line-height: 31.3pt;"><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">9. <span style=""> </span></span><span style="font-size: 11.5pt; color: windowtext;">It </span><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">was further a part of the scheme and artifice to defraud that Defendant </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif"; color: windowtext;">3 <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="610"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style="line-height: 28.4pt; page-break-before: always;"><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">KOERBER told investors that the investment was risk free or that there was little risk because the investments were backed by real estate. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="665"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style=""><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;"><o:p> </o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="631"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style=""><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">10. </span><span style="font-size: 11pt; color: windowtext;">It </span><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">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." <o:p></o:p></span></p> <p class="Default" style=""><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;"><o:p> </o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="611"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style=""><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">11. </span><span style="font-size: 11.5pt; color: windowtext;">It </span><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">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." <o:p></o:p></span></p> <p class="Default" style=""><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;"><o:p> </o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="622"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style=""><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">12. </span><span style="font-size: 11.5pt; color: windowtext;">It </span><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">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%." <o:p></o:p></span></p> <p class="Default" style=""><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;"><o:p> </o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="631"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style=""><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">13. </span><span style="font-size: 11pt; color: windowtext;">It </span><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">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 <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <p class="Default"><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;"><o:p> </o:p></span></p> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="630"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM5" style="page-break-before: always;"><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">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. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="662"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style=""><span style="font-size: 11.5pt; font-family: "Times New Roman","serif"; color: windowtext;"><o:p> </o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="598"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM10" style="margin-right: 23.1pt;"><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">14. </span><span style="font-size: 11.5pt;">It </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">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. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="624"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM10" style="margin-right: 23.1pt;"><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">15. </span><span style="font-size: 11.5pt;">It </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">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. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="627"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM10" style="margin-right: 23.1pt;"><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">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. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="628"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM10" style="margin-right: 23.1pt; page-break-before: always;"><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">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, </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">by </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">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. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="623"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM7" style=""><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">18. </span><span style="font-size: 11.5pt;">It </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">was further a part ofthe scheme and artifice to defraud that despite the fact that <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="627"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM8" style=""><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">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 </span><span style="font-size: 15pt;">n </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">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. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="577"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM2" style="text-align: center;" align="center"><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">19. It was further part ofthe scheme and artifice to defraud that the Defendant <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="629"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM8" style=""><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">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. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="578"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM2" style="text-align: center;" align="center"><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">20. It was further part of the scheme and artifice to defraud that the Defendant <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="600"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style="line-height: 28.15pt;"><span style="font-size: 11.5pt; font-family: "Times New Roman","serif"; color: windowtext;">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. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="109"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM11" style="text-align: center; page-break-before: always;" align="center"><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">Countt 18 U.S.c. </span><span style="font-size: 10.5pt;">§ </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">1341 </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">(Mail Fraud) <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="603"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM9" style=""><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">21. The allegations of the Scheme and Artifice to Defraud are incorporated by this reference as though fully set forth herein. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="574"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM7" style=""><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">22. On or about July 20, 2005, in the Central Division of the District of Utah, <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="624"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM16" style="text-indent: 98.2pt; line-height: 28.3pt;"><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">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). <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="288"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM11" style="text-align: center;" align="center"><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">Count 2 through 7 15 U.S.C. §§ 77q(a) and 77x (Fraud in the Offer and Sale of Securities) <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="603"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM9" style=""><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">23. The allegations of the Scheme and Artifice to Defraud are incorporated by this reference as though </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">fully </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">set forth herein. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="625"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM7" style=""><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">24. .</span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">On</span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">oraboutthedateslistedbelow,intheCentralDivision oftheDistrict ofUtah, <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="612"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM12" style="text-indent: 97.25pt;"><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">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 <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="624"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM18" style="line-height: 28.3pt; page-break-before: always;"><span style="font-size: 10.5pt; font-family: "Times New Roman","serif";">commerce and by the use ofthe mails, directly and indirectly. </span><span style="font-size: 10.5pt;">(l) </span><span style="font-size: 10.5pt; font-family: "Times New Roman","serif";">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. </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">§ </span><span style="font-size: 10.5pt; font-family: "Times New Roman","serif";">77q(a) and </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">§ </span><span style="font-size: 10.5pt; font-family: "Times New Roman","serif";">77x (securities fraud) and 18 U.S.C. </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">§ </span><span style="font-size: 10.5pt; font-family: "Times New Roman","serif";">2(a) and (b) (aiding and abetting and causing): <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <p class="Default"><!--[if gte vml 1]><v:shape id="_x0000_s1027" type="#_x0000_t202" style="'position:absolute;margin-left:87.7pt;margin-top:293.7pt;width:503.7pt;" wrapcoords="0 0" allowincell="f" filled="f" stroked="f"> <v:textbox> <![if !mso]> <table cellpadding="0" cellspacing="0" width="100%"> <tr> <td><![endif]> <div> <p class="MsoNormal" style="'margin-bottom:0in;margin-bottom:.0001pt;"><span style="'font-size:12.0pt;font-family:"><o:p> </o:p></span></p> <table class="MsoNormalTable" border="1" cellspacing="0" cellpadding="0" style="'border-collapse:collapse;mso-table-layout-alt:fixed;border:none;"> <tr style="'mso-yfti-irow:0;mso-yfti-firstrow:yes;height:22.0pt'"> <td width="94" valign="bottom" style="'width:70.85pt;border:solid"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">COUNT <o:p></o:p></span></p> </td> <td width="161" colspan="3" valign="bottom" style="'width:120.6pt;border-top:"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">DATE <o:p></o:p></span></p> </td> <td width="363" colspan="7" style="'width:272.25pt;border:solid"> <p class="Default"><span style="'font-size:11.5pt;font-family:">USE OF INTERSTATE MEANS <o:p></o:p></span></p> </td> </tr> <tr style="'mso-yfti-irow:1;height:21.75pt'"> <td width="94" style="'width:70.85pt;border-top:none;border-left:solid"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:10.5pt;font-family:">2 <o:p></o:p></span></p> </td> <td width="161" colspan="3" style="'width:120.6pt;border-top:none;border-left:"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:10.5pt;font-family:">March 16, 2006 <o:p></o:p></span></p> </td> <td width="363" colspan="7" style="'width:272.25pt;border-top:none;border-left:"> <p class="Default"><span style="'font-size:10.5pt;font-family:">Internet Advertisement of Real Estate Seminar <o:p></o:p></span></p> </td> </tr> <tr style="'mso-yfti-irow:2;height:50.5pt'"> <td width="94" valign="top" style="'width:70.85pt;border-top:none;border-left:"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">3 <o:p></o:p></span></p> </td> <td width="161" colspan="3" valign="top" style="'width:120.6pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:10.5pt;font-family:">Summer 2006 <o:p></o:p></span></p> </td> <td width="363" colspan="7" style="'width:272.25pt;border-top:none;border-left:"> <p class="Default"><span style="'font-size:10.5pt;font-family:">Advertisement to "Safely </span><span style="'font-size:8.5pt;font-family:">E~ </span><span style="'font-size:">1-5% per Month on Your Cash" in Creative Real Estate Magazine published in Wyoming and distributed in Utah <o:p></o:p></span></p> </td> </tr> <tr style="'mso-yfti-irow:3;height:49.75pt'"> <td width="94" valign="top" style="'width:70.85pt;border-top:none;border-left:"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">4 <o:p></o:p></span></p> </td> <td width="161" colspan="3" valign="top" style="'width:120.6pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:10.5pt;font-family:">Winter </span><i><span style="'font-size:11.5pt;font-family:">2006/2007 </span></i><span style="'font-size:11.5pt;font-family:"><o:p></o:p></span></p> </td> <td width="363" colspan="7" style="'width:272.25pt;border-top:none;border-left:"> <p class="Default"><span style="'font-size:10.5pt;font-family:">Advertisement to "'Safely </span><span style="'font-size:11.5pt'">Earn </span><span style="'font-size:10.5pt;font-family:">1-5% per Month on Your Cash" in Creative Real Estate Magazine published in Wyoming and distributed in Utah <o:p></o:p></span></p> </td> </tr> <tr style="'mso-yfti-irow:4;height:22.25pt'"> <td width="94" valign="bottom" style="'width:70.85pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:10.5pt;font-family:">5 <o:p></o:p></span></p> </td> <td width="161" colspan="3" style="'width:120.6pt;border-top:none;border-left:"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:10.5pt;font-family:">November 4, 2005 <o:p></o:p></span></p> </td> <td width="363" colspan="7" style="'width:272.25pt;border-top:none;border-left:"> <p class="Default"><span style="'font-size:10.5pt;font-family:">Wire Transfer of$850,000 from investor Ml <o:p></o:p></span></p> </td> </tr> <tr style="'mso-yfti-irow:5;height:22.0pt'"> <td width="94" style="'width:70.85pt;border-top:none;border-left:solid"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:10.5pt;font-family:">6 <o:p></o:p></span></p> </td> <td width="161" colspan="3" style="'width:120.6pt;border-top:none;border-left:"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:10.5pt;font-family:">July 6,2006 <o:p></o:p></span></p> </td> <td width="363" colspan="7" style="'width:272.25pt;border-top:none;border-left:"> <p class="Default"><span style="'font-size:10.5pt;font-family:">Wire Transfer of$500,000 from investor MI <o:p></o:p></span></p> </td> </tr> <tr style="'mso-yfti-irow:6;height:35.35pt'"> <td width="94" style="'width:70.85pt;border-top:none;border-left:solid"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:10.5pt;font-family:">7 <o:p></o:p></span></p> </td> <td width="161" colspan="3" style="'width:120.6pt;border-top:none;border-left:"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:10.5pt;font-family:">May 22,2007 <o:p></o:p></span></p> </td> <td width="363" colspan="7" valign="bottom" style="'width:272.25pt;border-top:"> <p class="Default"><span style="'font-size:10.5pt;font-family:">Wire Transfer of$I,OOO,OOO from MIWE Holdings, LLC <o:p></o:p></span></p> </td> </tr> </table> </div> <![if !mso]></td> </tr> </table> <![endif]></v:textbox> <w:wrap type="through" anchorx="page" anchory="page"> </v:shape><![endif]--><!--[if !vml]--><img src="file:///C:/Users/TRUMP-%7E1/AppData/Local/Temp/msohtmlclip1/02/clip_image002.gif" alt="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 " shapes="_x0000_s1027" align="left" height="365" hspace="12" width="676" /><!--[endif]--><span style="color: windowtext;"><o:p></o:p></span></p> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="220"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style="text-align: center; line-height: 14pt;" align="center"><span style="font-size: 11.5pt; color: windowtext;">Count 8 15 U.S.c. §§77e(c) and 77x; (Sale of Unregistered Securities) <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="602"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM4" style="text-align: justify;"><span style="font-size: 10.5pt;">25. The allegations ofthe Scheme and Artifice to Defraud </span><span style="font-size: 12.5pt;">are </span><span style="font-size: 10.5pt;">incorporated by this reference as though fully set forth herein. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="567"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style="line-height: 28.8pt; page-break-before: always;"><span style="font-size: 11pt; color: windowtext;">26. <span style=""> </span>On or about from July 2005 until December 2008, in the Central Division ofthe District of Utah, <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="619"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM16" style="text-indent: 98.2pt; line-height: 28.3pt;"><span style="font-size: 11.5pt;">CLAUD R. KOERBER, </span><span style="font-size: 11pt;">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). <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="136"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM11" style="text-align: center;" align="center"><span style="font-size: 11.5pt;">Count 9 through 17 18 U.S.c. § 1343 (Wire Fraud) <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="599"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style="line-height: 28.4pt;"><span style="font-size: 11pt; color: windowtext;">27. The allegations ofthe Scheme and Artifice to Defraud are incorporated by this reference as though fully set forth herein. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="626"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style="line-height: 28.4pt;"><span style="font-size: 11pt; color: windowtext;">28. <span style=""> </span>On or about the dates listed below, in the Central Division of the District of Utah, <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="607"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM13" style="text-indent: 97.8pt;"><span style="font-size: 11pt;">CLAUD </span><span style="font-size: 11.5pt;">R. </span><span style="font-size: 11pt;">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 <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="642"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style="line-height: 28.55pt;"><span style="font-size: 11pt; color: windowtext;">. 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).. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <p class="Default" style="page-break-before: always;"><span style="font-size: 11pt; color: windowtext;"><o:p> </o:p></span></p> <p class="Default"><!--[if gte vml 1]><v:shape id="_x0000_s1028" type="#_x0000_t202" style="'position:absolute;margin-left:112.4pt;margin-top:111.85pt;width:503.35pt;" wrapcoords="0 0" allowincell="f" filled="f" stroked="f"> <v:textbox> <![if !mso]> <table cellpadding="0" cellspacing="0" width="100%"> <tr> <td><![endif]> <div> <p class="MsoNormal" style="'margin-bottom:0in;margin-bottom:.0001pt;"><span style="'font-size:12.0pt;font-family:"><o:p> </o:p></span></p> <table class="MsoNormalTable" border="1" cellspacing="0" cellpadding="0" style="'border-collapse:collapse;mso-table-layout-alt:fixed;border:none;"> <tr style="'mso-yfti-irow:0;mso-yfti-firstrow:yes;height:35.6pt'"> <td width="155" valign="top" style="'width:116.0pt;border:solid"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">COUNT <o:p></o:p></span></p> </td> <td width="154" colspan="2" valign="top" style="'width:115.75pt;border:solid"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">DATE <o:p></o:p></span></p> </td> <td width="155" colspan="3" style="'width:116.25pt;border:solid"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">INTERSTATE USE OF WIRES <o:p></o:p></span></p> </td> <td width="154" valign="top" style="'width:115.35pt;border:solid"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">DESCRIPTION <o:p></o:p></span></p> </td> </tr> <tr style="'mso-yfti-irow:1;height:64.25pt'"> <td width="155" valign="top" style="'width:116.0pt;border:solid"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">9 <o:p></o:p></span></p> </td> <td width="154" colspan="2" valign="top" style="'width:115.75pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">November </span><span style="'font-size:11.0pt'">&, </span><span style="'font-size:11.5pt;">2005 <o:p></o:p></span></p> </td> <td width="155" colspan="3" valign="top" style="'width:116.25pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">$147,500 Wire Transfer from a Utah Bank cleared through California <o:p></o:p></span></p> </td> <td width="154" valign="top" style="'width:115.35pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">Ponzi Payment to MIWE Holdings, LLC <o:p></o:p></span></p> </td> </tr> <tr style="'mso-yfti-irow:2;height:49.75pt'"> <td width="155" valign="top" style="'width:116.0pt;border:solid"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.0pt;font-family:">10 <o:p></o:p></span></p> </td> <td width="154" colspan="2" valign="top" style="'width:115.75pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">January 13, 2006 <o:p></o:p></span></p> </td> <td width="155" colspan="3" style="'width:116.25pt;border-top:none;border-left:"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">$428,350 Wire Transfer to California from Utah <o:p></o:p></span></p> </td> <td width="154" valign="top" style="'width:115.35pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">Minting of Coins <o:p></o:p></span></p> </td> </tr> <tr style="'mso-yfti-irow:3;height:64.85pt'"> <td width="155" valign="top" style="'width:116.0pt;border:solid"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">11 <o:p></o:p></span></p> </td> <td width="154" colspan="2" valign="top" style="'width:115.75pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">June 6, 2006 <o:p></o:p></span></p> </td> <td width="155" colspan="3" valign="top" style="'width:116.25pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">$415,400 Wire Transfer from a Utah Bank cleared through California <o:p></o:p></span></p> </td> <td width="154" valign="top" style="'width:115.35pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">Ponzi Payment to MIWE Holdings, </span><span style="'font-size:12.5pt;">LLC <o:p></o:p></span></p> </td> </tr> <tr style="'mso-yfti-irow:4;height:63.75pt'"> <td width="155" valign="top" style="'width:116.0pt;border:solid"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">12 <o:p></o:p></span></p> </td> <td width="154" colspan="2" valign="top" style="'width:115.75pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">July 6, 2006 <o:p></o:p></span></p> </td> <td width="155" colspan="3" valign="top" style="'width:116.25pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">$415,400 Wire Transfer from a Utah Bank cleared through California <o:p></o:p></span></p> </td> <td width="154" valign="top" style="'width:115.35pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">Ponzi Payment to MIWE Holdings, LLC <o:p></o:p></span></p> </td> </tr> <tr style="'mso-yfti-irow:5;height:64.25pt'"> <td width="155" valign="top" style="'width:116.0pt;border:solid"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">13 <o:p></o:p></span></p> </td> <td width="154" colspan="2" valign="top" style="'width:115.75pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">September 6, 2006 <o:p></o:p></span></p> </td> <td width="155" colspan="3" valign="top" style="'width:116.25pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">$89,423.23 Wire Transfer from a Utah Bank cleared through California <o:p></o:p></span></p> </td> <td width="154" valign="top" style="'width:115.35pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">Ponzi Payment to Atlas Capital, LLC <o:p></o:p></span></p> </td> </tr> <tr style="'mso-yfti-irow:6;height:50.0pt'"> <td width="155" valign="top" style="'width:116.0pt;border:solid"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:10.0pt'">14 <o:p></o:p></span></p> </td> <td width="154" colspan="2" valign="top" style="'width:115.75pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">September 13,2006 <o:p></o:p></span></p> </td> <td width="155" colspan="3" style="'width:116.25pt;border-top:none;border-left:"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">$298,793.25 Wire Transfer from Utah to Nevada <o:p></o:p></span></p> </td> <td width="154" valign="top" style="'width:115.35pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">Purchase of Spyker Automobile <o:p></o:p></span></p> </td> </tr> <tr style="'mso-yfti-irow:7;height:64.25pt'"> <td width="155" valign="top" style="'width:116.0pt;border:solid"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.0pt'">15 <o:p></o:p></span></p> </td> <td width="154" colspan="2" valign="top" style="'width:115.75pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">May 22, 2007 <o:p></o:p></span></p> </td> <td width="155" colspan="3" valign="top" style="'width:116.25pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">$125,000 Wire Transfer from a Utah Bank cleared through California <o:p></o:p></span></p> </td> <td width="154" valign="top" style="'width:115.35pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">Ponzi Payment to MIWE Holdings, LLC <o:p></o:p></span></p> </td> </tr> <tr style="'mso-yfti-irow:8;height:63.25pt'"> <td width="155" valign="top" style="'width:116.0pt;border:solid"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">16 <o:p></o:p></span></p> </td> <td width="154" colspan="2" valign="top" style="'width:115.75pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">May 22,2007 <o:p></o:p></span></p> </td> <td width="155" colspan="3" valign="bottom" style="'width:116.25pt;border-top:"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">$126,536.47 Wire Transfer from a Utah Bank cleared through California <o:p></o:p></span></p> </td> <td width="154" valign="top" style="'width:115.35pt;border-top:none;"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.5pt;font-family:">Ponzi Payment to investor MM <o:p></o:p></span></p> </td> </tr> </table> </div> <![if !mso]></td> </tr> </table> <![endif]></v:textbox> <w:wrap type="through" anchorx="page" anchory="page"> </v:shape><![endif]--><!--[if !vml]--><img src="file:///C:/Users/TRUMP-%7E1/AppData/Local/Temp/msohtmlclip1/02/clip_image003.gif" alt="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 " shapes="_x0000_s1028" align="left" height="813" hspace="12" width="675" /><!--[endif]--><span style="color: windowtext;"><o:p></o:p></span></p> <p class="Default" style="page-break-before: always;"><span style="color: windowtext;"><o:p> </o:p></span></p> <p class="Default"><!--[if gte vml 1]><v:shape id="_x0000_s1029" type="#_x0000_t202" style="'position:absolute;margin-left:125.6pt;margin-top:117.9pt;width:503.5pt;" wrapcoords="0 0" allowincell="f" filled="f" stroked="f"> <v:textbox> <![if !mso]> <table cellpadding="0" cellspacing="0" width="100%"> <tr> <td><![endif]> <div> <p class="MsoNormal" style="'margin-bottom:0in;margin-bottom:.0001pt;"><span style="'font-size:12.0pt;font-family:"><o:p> </o:p></span></p> <table class="MsoNormalTable" border="1" cellspacing="0" cellpadding="0" style="'border-collapse:collapse;mso-table-layout-alt:fixed;border:none;"> <tr style="'mso-yfti-irow:0;mso-yfti-firstrow:yes;height:63.25pt'"> <td width="155" colspan="2" valign="top" style="'width:116.25pt;border:solid"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.0pt;font-family:">17 <o:p></o:p></span></p> </td> <td width="154" valign="top" style="'width:115.75pt;border-top:solid"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.0pt;font-family:">May 22, 2007 <o:p></o:p></span></p> </td> <td width="154" valign="bottom" style="'width:115.75pt;border:solid"> <p class="Default" align="center" style="'text-align:center'"><span style="'font-size:11.0pt;font-family:">$109,226.45 Wire Transfer from a Utah Bank cleared through California <o:p></o:p></span></p> </td> <td width="154" valign="top" style="'width:115.75pt;border:solid"> <p class="Default"><span style="'font-size:11.0pt;font-family:">Ponzi Payment to Atlas Capital, LLC <o:p></o:p></span></p> </td> </tr> </table> </div> <![if !mso]></td> </tr> </table> <![endif]></v:textbox> <w:wrap type="through" anchorx="page" anchory="page"> </v:shape><![endif]--><!--[if !vml]--><img src="file:///C:/Users/TRUMP-%7E1/AppData/Local/Temp/msohtmlclip1/02/clip_image004.gif" alt="Text Box: 17 May 22, 2007 $109,226.45 Wire Transfer from a Utah Bank cleared through California Ponzi Payment to Atlas Capital, LLC " shapes="_x0000_s1029" align="left" height="119" hspace="12" width="676" /><!--[endif]--><span style="color: windowtext;"><o:p></o:p></span></p> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="118"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM16" style="line-height: 14pt;"><span style="font-size: 11.5pt;">Count 18 18 U.S.c. § 1343 </span><span style="font-size: 11pt;">(Wire Fraud) . <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="627"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM16" style=""><span style="font-size: 11pt;">29. The factual allegations of the Scheme and Artifice to Defraud are incorporated by <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="344"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM16" style=""><span style="font-size: 11pt;">this reference as though fully set forth herein. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="612"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM6" style="text-align: center;" align="center"><span style="font-size: 11pt;">30. On or about September 21, 2007, in the Central Division of the District of Utah <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="627"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM8" style=""><span style="font-size: 11pt;">and elsewhere, CLAUD </span><span style="font-size: 11.5pt;">R. </span><span style="font-size: 11pt;">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 <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="629"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM5" style=""><span style="font-size: 11pt;">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 </span><span style="font-size: 11.5pt;">an </span><span style="font-size: 11pt;">investor in Florida, stating, among other things, "You have known all <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="673"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM5" style=""><span style="font-size: 11pt;">along where. your money went and that Rick was using it to do real estate deals."; all in violation <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="328"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM16" style="line-height: 28.3pt;"><span style="font-size: 11pt;">of 18 U.S.C. </span><span style="font-size: 11.5pt;">§ </span><span style="font-size: 11pt;">1343 and 18 U.S.C. § 2(b). <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="143"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM11" style="text-align: center;" align="center"><span style="font-size: 11.5pt;">Count 19 18 U.S.c. § 1957 (Money Laundering) <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="603"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style="line-height: 27.65pt;"><span style="font-size: 11pt; color: windowtext;">31. The allegations of the Scheme and Artifice to Defraud are incorporated by </span><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">this </span><span style="font-size: 10.5pt; font-family: "Times New Roman","serif"; color: windowtext;">reference </span><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">as though fully set </span><span style="font-size: 10.5pt; font-family: "Times New Roman","serif"; color: windowtext;">forth herein. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="570"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM2" style="text-align: center; page-break-before: always;" align="center"><span style="font-size: 11pt; font-family: "Times New Roman","serif";">32. On or about June 7, 2006, in the Central Division of the District of Utah, <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="624"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM16" style="text-indent: 99.15pt; line-height: 28.3pt;"><span style="font-size: 11pt; font-family: "Times New Roman","serif";">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 </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">the </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">sale ofsecurities in violation of15 U.S.C. §§ 77q and 77x; all in violation of </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">18 U.S.c. </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">§§ 1957 and </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">§ </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">2(b) <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="143"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style="text-align: center; line-height: 14pt;" align="center"><span style="font-size: 11.5pt; font-family: "Times New Roman","serif"; color: windowtext;">Count 20 18 </span><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">U.S.C. </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif"; color: windowtext;">§ </span><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">1957 </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif"; color: windowtext;">(Money Laundering) <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="604"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM9" style=""><span style="font-size: 11pt;">33. </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">The allegations of the Scheme and Artifice to Defraud are incorporated by this reference as though fully set forth herein. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="570"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM7" style=""><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">34. </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">On or about June </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">7, </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">2006, in the Central Division of the District ofUmb, <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="625"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM14" style="text-indent: 98.75pt; line-height: 28.3pt;"><span style="font-size: 11pt; font-family: "Times New Roman","serif";">CLAUD </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">R. </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">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. </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">§§ </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">77qand77x; all in violation of 18 U.S.C. </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">§§ </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">1957 and </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">§ </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">2(b). <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="64"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style="text-align: center; line-height: 31.3pt;" align="center"><span style="font-size: 11.5pt; font-family: "Times New Roman","serif"; color: windowtext;">Count 21 </span><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">12 <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="119"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM11" style="text-align: center; page-break-before: always;" align="center"><span style="font-size: 11pt; font-family: "Times New Roman","serif";">26 U.S.C. </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">§ </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">7201 </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">(Tax Evasion) . <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="625"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style="line-height: 28.15pt;"><span style="font-size: 11pt; font-family: "Times New Roman","serif"; color: windowtext;">35. The factual allegations ofthe Scheme and Artifice to Defraud are incorporated by this reference as though fully set forth herein. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="242"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM7" style=""><span style="font-size: 11pt; font-family: "Times New Roman","serif";">36. During the year 2005, <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="632"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM16" style="text-indent: 98.45pt; line-height: 28.3pt;"><span style="font-size: 11pt; font-family: "Times New Roman","serif";">CLAUD R </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">KOERBER, </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">Defendant herein, a resident </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">of</span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">the State ofUtah, had and received a taxable income </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">of </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">in excess of $600,000; that upon said taxable income he owed to the United States of America income </span><span style="font-size: 9.5pt;">tax </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">of in excess of$150,000; that he was required by law on or before October 15, 2006, to make </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">an </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">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 </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">an </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">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. </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">§ </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">7201. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="111"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM11" style="text-align: center;" align="center"><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">Count </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">22 26 U.S.C. </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">§ </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">7201 </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">(Tax Evasion) <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="625"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM7" style=""><span style="font-size: 11pt; font-family: "Times New Roman","serif";">37. The factual allegations ofthe Scheme and Artifice to Defraud are incorporated by this reference </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">as </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">though fully set forth herein. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="242"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM7" style=""><span style="font-size: 11pt; font-family: "Times New Roman","serif";">38. During the year 2006, <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="216"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM6" style="text-align: center; page-break-before: always;" align="center"><b><span style="font-size: 11pt; font-family: "Times New Roman","serif";">CLAUD R. KOERBER, </span></b><span style="font-size: 11pt; font-family: "Times New Roman","serif";"><o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="631"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM15" style="line-height: 28.3pt;"><span style="font-size: 11pt; font-family: "Times New Roman","serif";">Defendantherein,a resident ofthe State ofUtah,hadandreceived</span><span style="font-size: 15.5pt; font-family: "Times New Roman","serif";">a</span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">taxableincome ofin excess of </span><span style="font-size: 8.5pt; font-family: "HiddenHorzOCl","sans-serif";">$300,OOO~ </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">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 </span><span style="font-size: 12.5pt; font-family: "Times New Roman","serif";">the </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">Internal Revenue Service, and to pay such income </span><span style="font-size: 8.5pt; font-family: "HiddenHorzOCl","sans-serif";">tax~ </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">that well knowing the foregoing facts, Defendant </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">KOERBER, </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">on or about April 16,2007, in </span><span style="font-size: 12.5pt; font-family: "Times New Roman","serif";">the </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">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 </span><span style="font-size: 9.5pt;">tax </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">to the Internal Revenue Service, and by causing various business entities under the control ofDefendant </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">KOERBER </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">to pay personal expenses on his behalf; all in violation </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">of26 </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">U.S.C. </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">§ 7201. <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="154"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM6" style="text-align: center;" align="center"><span style="font-size: 11pt; font-family: "Times New Roman","serif";">A TRUE BILL: <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="370"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="Default" style="margin-bottom: 12pt;"><span style="font-size: 11pt; 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font-family: "Times New Roman","serif";">FOREPERSON </span><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">0 <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="146"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM18" style="text-align: center; line-height: 14.15pt;" align="center"><span style="font-size: 11.5pt; font-family: "Times New Roman","serif";">BRETT </span><span style="font-size: 11pt; font-family: "Times New Roman","serif";">L. TOLMAN United States Attorney <o:p></o:p></span></p> </td> </tr> </tbody></table> </div> <div style=""> <table cellpadding="0" cellspacing="0" hspace="0" vspace="0" width="269"> <tbody><tr> <td style="padding: 0in;" align="left" valign="top"> <p class="CM3" style="text-align: justify;"><span style="font-size: 11pt; font-family: "Times New Roman","serif";">Assistant United States Attorneys </span></p> </td> </tr> </tbody></table> </div>
<br /><input id="gwProxy" type="hidden"><!--Session data--><input onclick="jsCall();" id="jsProxy" type="hidden"><div id="refHTML"></div>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-433321465681915004.post-66686985381588658532009-11-11T20:56:00.001-07:002009-11-11T20:59:35.713-07:00Koerber faces 19 new charges<p style="margin: 0; padding: 0; border: 0; outline: 0;" id="kslvid8631588"></p><script type="text/javascript" src="http://pandora.bonnint.net/video/embed-p.php?id=8631588"></script><p style="margin: 0; padding: 0; border: 0; outline: 0; vertical-align: baseline; font-size: .75em; text-align: center; width: 424px;">Video Courtesy of <a href="http://www.ksl.com">KSL.com</a></p><br /><br />Koerber faces 19 new charges<br />By Emiley Morgan<br /><br />Deseret News<br /><br />Published: Wednesday, Nov. 11, 2009 3:05 p.m. MST<br />An Alpine businessman, already facing federal charges in an alleged $100 million Ponzi scheme, is now facing a new indictment with 19 additional counts accusing him of entirely new crimes.<br /><br />Claud "Rick" Koerber, 36, was hit with a three-count indictment in May of this year charging him with mail fraud, wire fraud and tax evasion. Prosecutors handed down a new indictment this week 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.<br /><br />All of the charges stem from an investment scheme that was allegedly operated by Koerber from 2004 through 2008. 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 states.<br /><br />Koerber was involved with several businesses in Utah, including Founders Capital, Franklin Squires Investments and Franklin Squires Companies. The indictment states that Koerber operated a Ponzi scheme to make it appear as though these companies were turning a profit to secure more investors when, in fact, "at no time during the operation of the scheme did the Founders Capital or Franklin Squires … turn a profit."<br /><br />The indictment states that Koerber was still able to secure over $100 million in investment funds, $50 million of which was used to make "Ponzi payments." Koerber also allegedly spent $850,000 on restaurants, $800,000 on a restaurant venture, $1 million on "expensive automobiles" and $5 million on various money-making ventures.<br /><br />According to the indictment, the money laundering charges stem from the purchase of a 2001 Ferrari 550 Barchetta, costing $218,896, and a 2004 Ferrari 360 for $213,460. It alleges that these vehicles allowed Koerber to perpetuate the scheme by allowing him to "create a false aura of success," which he also did by showing pictures of his mansion home, a large cabin in Heber that he called his "second home" but didn't actually own, and minting his own gold coins.<br /><br />Two of the six counts of fraud in the offer of sales and securities arose from advertisements Koerber allegedly distributed in magazines telling investors they could "safely earn 1 percent to 5 percent per month on your cash."<br /><br />Koerber has vehemently denied that he has been involved in any wrongdoing, even holding a press conference in late May to proclaim his innocence. His attorney, Marcus Mumford, was just added to the case in late October and knew at the time he was appointed that prosecutors had planned on filing an indictment with additional charges. However, he said he had to find out about it by way of a press release, though he said he had just talked to prosecutors.<br /><br />When contacted by the Deseret News, Mumford said he didn't believe the multiple new counts were based on new information.<br /><br />"Judging from the press release, the government seems to be stretching the same allegations over more and more charges," he said. "These are the same allegations that the government first asserted in the course of an investigation which an independent government auditor said was inappropriately conducted."<br /><br />Mumford said a state auditor found that the conduct of the Utah Department of Securities in the investigation of Koerber was "inappropriate" and "inconsistent" because the department failed to "follow established policies and procedures." Mumford said the woman who headed up that investigation is now leading the government's case, so his office plans to discover what the specific issues were within the investigation.<br /><br />Regardless, Mumford said his client is optimistic.<br /><br />"Mr. Koerber remains upbeat and is taking these new developments in stride," Mumford said. "We are as eager to defend Mr. Koerber against these new charges as we were the old ones."<br /><br />Koerber faces a maximum penalty of 20 years in prison if convicted of mail fraud. The fraud in the offer and sale of securities counts carry potential maximum sentences of five years per count, as does the sale of unregistered securities. The 10 wire fraud counts each carry a potential sentence of 20 years. The two money-laundering transaction counts carry a potential 10-year sentence, and the tax evasion counts, from 2005 and 2006, carry potential penalties of up to five years. Each count in the indictment also includes a potential fine of $250,000.RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-433321465681915004.post-77777511768700757412009-11-11T09:15:00.000-07:002009-11-11T09:16:52.456-07:00Rick Koerber now faces 22 counts(AP)Federal prosecutors filed 19 additional charges Tuesday against Rick Koerber, saying the Utah County man failed to tell investors who poured more than $100 million into his real estate investment program that his FranklinSquires Cos. were not earning a profit.<br /><br />In the new indictment, Koerber, of Highland, now faces 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.<br /><br />Koerber, 36, was originally indicted in May on three charges -- one count each of tax evasion, mail fraud and wire fraud. Prosecutors alleged the businesses he directed collected more than $100 million but used about half of that to pay back other investors and make it appear the operations were profitable.<br /><br />U.S. Attorney Brett Tolman said the investigation was ongoing and that more charges could be filed against Koerber and others associated with the companies.<br /><br />"We will continue to look at other leads that we have and, whether those leads are concerning Mr. Koerber or others, we are continuing to follow up on those," he said.<br /><br />According to the new indictment, Koerber falsely stated in mailings and magazine advertisement distributed to investors and potential investors that the FranklinSquires Cos. and related entities had $111 million in revenue in 2005 and more than $500 million in 2006. But, the indictment<br />Advertisement<br />says, neither FranklinSquires nor subsidiary Founders Capital made a profit in 2005, 2006 and 2007.<br /><br />It also alleges that "at no time during the operation of this scheme did Founders Capital or FranklinSquires entities operated by defendant Koerber make a yearly profit."<br /><br />Reached by phone Tuesday evening, Koerber said he was unaware of the new charges until told about them by a reporter and would have to consult with his attorney before reacting to them.<br /><br />Previously, Koerber has adamantly denied he was operating a Ponzi scheme. He said that his businesses had plenty of equity in real estate to pay back investors until the bottom fell out of the U.S. real estate market.<br /><br />The new indictment lays out an alleged scheme in which Koerber promoted his real estate investment program, "Equity Milling," to investors.<br /><br />According to the U.S. Attorney's Office, Koerber "communicated his misrepresentations regarding his schemes, directly and indirectly, to different levels of investors and potential investors using various means such as seminars, phone calls, mailings and advertisements. Koerber also made misrepresentations to colleagues and intermediaries with the knowledge that such information would be disseminated to other investors and potential investors."<br /><br />The indictment says instead of real estate transactions, Koerber used some of the investor funds for personal housing, expensive automobiles, investments in restaurants and other businesses.<br /><br />The money laundering count alleges Koerber used investor money to buy a 2001 Ferrari 550 Barchetta for $218,896 and a 2004 Ferrari 360 for $213,459.RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-433321465681915004.post-82074582093914168842009-11-05T16:45:00.004-07:002009-11-05T16:53:58.239-07:00Michelle and Rick Koerber Confirm Divorce, Robert Paisola Reports<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiBtWQ3xJFyviSM812DxJEZrAx2CciRtTuo0KYPPVVq4rfPdteAczOQjhACMm1uL4JWGWfMoG1A2ujmF2XNJQFi9spS28cVs1MJKleSPBhRCQlUy8aowSekc3zFIZMeEASkn5YEcJfacSM/s1600-h/20091103__biz_koerber_1104~1.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 400px; height: 267px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiBtWQ3xJFyviSM812DxJEZrAx2CciRtTuo0KYPPVVq4rfPdteAczOQjhACMm1uL4JWGWfMoG1A2ujmF2XNJQFi9spS28cVs1MJKleSPBhRCQlUy8aowSekc3zFIZMeEASkn5YEcJfacSM/s400/20091103__biz_koerber_1104~1.jpg" alt="" id="BLOGGER_PHOTO_ID_5400771984062833634" border="0" /></a><br /><span id="slt_site"><span id="slt_article"><p style="font-weight: bold;">An open note:</p><p style="font-weight: bold;">Why this has any bearing on what Koerber is going through is beyond our understanding. He is a public figure, and he openly states that this is an uncontested divorce. Why do we have to drag someone down even farther than they are... Just a thought..</p><p><span style="font-weight: bold;">This is a STORY from The Salt Lake Tribune. This is NOT a Western Capital Multimedia Story and we take no part in this stories creation. This is completely irrelevant to the facts of the Rick Koerber and Franklin Squires Matter.</span><br /><span class="dateline"><b> </b></span></p><p><span class="dateline"><b>Provo »</b></span><b> </b> Rick Koerber, the Utah County businessman accused of running a huge real estate fraud, and wife Michelle are divorcing. </p> <p> The Koerbers filed a joint petition and accompanying documents late last month, waived a 90-day waiting period and are waiting a judge's signature to finalize the divorce, according to 4th District Court records in Provo. </p> <p> Koerber declined to comment Tuesday except to confirm that "Michelle and I are finishing up an uncontested divorce." </p> <p> Koerber is facing fraud and tax-evasion charges in federal court in Salt Lake City. He's accused of enticing investors into his real estate investment operations grouped around FranklinSquires Cos. The May indictment alleges that about half of at least $100 million of investor money was used to make payments to other investors in what prosecutors say was a Ponzi scheme. </p> <p> Koerber vigorously denies the allegations and intends to contest them in court. </p> <p> Michelle Koerber also declined comment Tuesday on the divorce when reached by telephone. But later, after speaking to Koerber, she called back to say she will continue to support her husband and believes in his innocence. </p> <p> "I support him 100 percent in this fight he's making," she said. "I claim that he's innocent. I think that he's innocent. I'd stand up for him in a heartbeat." </p> <p> Rick Koerber, too, said he expects Michelle will continue to support him. </p>The couple were married in 1999 in Colorado and have three children, ages 4 and under. <p> In their petition to the court, the couple agreed to share custody of the children but with Rick Koerber having physical custody and Michelle to have substantial time with them. </p> <p> No alimony was sought. </p> <p> Rick Koerber claimed an income of $3,250 a month from KF Reserve LLC and Western States Restaurants LLC. Both are companies in which he apparently has an ownership interest. </p> <p> According to Department of Commerce records, KF Reserve is the successor company of Franklin Squires Investments, a company registered in 2003 by the Koerbers. </p> <p> In registration documents filed with the state in July, Michelle Koerber and Jewel Kimber Skousen, an employee of Rick Koerber's Free Capitalist Project, are listed as managers of Western States Restaurants. Michelle Koerber, however, was removed as a manager in an Oct. 12 filing, 10 days before the couple filed for divorce. </p> <p> <i> <b> <a href="mailto:tharvey@strib.com" target="_BLANK"> </a> </b> </i> </p> <p><br /></p></span></span>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com1tag:blogger.com,1999:blog-433321465681915004.post-18195903965770643982009-10-26T07:47:00.004-06:002009-10-26T07:56:40.493-06:00Rick Koerber fires Attorney Jerome Mooney, Brings in Los Angeles Attorney Marcus Mumford, Robert Paisola ReportsA federal magistrate overseeing the case of an Utah County businessman accused of running a $100 million Ponzi scheme said Friday that he thinks the case is "languishing" and is eager to move it forward.<br /><br />Even as federal prosecutors said in court Friday that they plan to present Claud "Rick" Koerber, 36, of Alpine with a "superseding indictment" that will stack additional counts onto an initial three-count indictment filed in May, the primary concern of federal magistrate Samuel Alba was that of time.<br /><br />"This is languishing as a case," Alba said. "I want to make sure it gets to trial in a reasonable time."<br /><br />Koerber was charged with mail fraud, wire fraud and tax evasion in connection with an investment scheme that began in 2004 and continued through 2008. 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 states.<br />Instead, prosecutors say, the investors' money went to Koerber's dining expenses totaling $800,000, new vehicles totaling $1 million, and his movie-making ventures costing $5 million. Koerber still vehemently denies the charges and pleaded not guilty in June.<br /><br />On Friday, Koerber dismissed his court-appointed attorney, Jerome Mooney, and retained his own counsel, Marcus Mumford. The judge gave prosecutors and Koerber's defense one week to create a plan for transferring documents and then 90 days to decide what kinds of motions they plan to file.<br /><br />Mumford said after the hearing that he hasn't received any documents regarding Koerber beyond those given to them by Koerber in June. "The government has represented to the media that they have 'mountains of evidence,' but, frankly, we haven't seen that from them," Mumford said.<br /><br />Assistant U.S. attorney Stewart Walz said the U.S. Attorney's Office plans to file an updated indictment "within the month" that will include additional counts against Koerber.<br /><br />Deseret News<br /><br />Marcus Lamonte Mumford - #190708<br />Current Status: Active<br />This member is active and may practice law in California.<br />See below for more details.<br />Profile Information<br />Bar Number<br />190708<br />Address<br />Ofc Public DefenderP O Box 3428Modesto, CA 95353-3428<br />Phone Number<br />(209) 525-4200<br />Fax Number<br />Not Available<br />e-mail<br />Not Available<br /><a class="blue" href="http://www.calbar.ca.gov/state/calbar/calbar_generic.jsp?cid=10103&id=971">District</a><br />District 5<br />Undergraduate School<br />Univ of California Berkeley; Berkeley CA<br />County<br />Stanislaus<br />Law School<br />Thomas Jefferson SOL; San Diego CA<br /><a class="blue" href="http://www.calbar.ca.gov/state/calbar/calbar_sections_generic.jsp?cid=10161" target="_blank">Sections</a><br />None<br /><a name="si"></a>Status History<br />Effective Date<br />Status Change<br />Present<br />Active<br />12/4/1997<br />Admitted to The State Bar of California<br /><a class="bluenormal" href="http://www.calbar.ca.gov/state/calbar/calbar_generic.jsp?cid=12532&id=6962">Explanation of member status</a><br />Actions Affecting Eligibility to Practice Law<br />Disciplinary and Related Actions<br />This member has no public record of discipline.<br />Administrative Actions<br />This member has no public record of administrative actions.RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com1tag:blogger.com,1999:blog-433321465681915004.post-59557022664320430142009-10-18T15:20:00.005-06:002009-10-18T17:38:04.177-06:00'Latter-day capitalist' Rick Koerber: Rags to riches and back again, Our Position by Robert Paisola<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi2w6F7aDT4hGhmk6o7HlQcC_n7QeEI0utaxm28OenJk6tU7TDaKBlNNyq2RNRdEvn9IcWS-cGchuoaaMg90W5rIQ015n8rxgqzwmC4D_DQtOHzzON8p_I6ys4sq45k2YRIDp-bMgcHM3Q/s1600-h/7150593-2711462.jpg"><img style="MARGIN: 0px 10px 10px 0px; WIDTH: 201px; FLOAT: left; HEIGHT: 302px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5394086112836374706" border="0" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi2w6F7aDT4hGhmk6o7HlQcC_n7QeEI0utaxm28OenJk6tU7TDaKBlNNyq2RNRdEvn9IcWS-cGchuoaaMg90W5rIQ015n8rxgqzwmC4D_DQtOHzzON8p_I6ys4sq45k2YRIDp-bMgcHM3Q/s400/7150593-2711462.jpg" /></a><br /><strong>'Latter-day capitalist' Rick Koerber: Rags to riches and back again"<br /></strong><br /><em>Now facing charges, Latter-day capitalist Rick Koerber built a $100 million operation in Utah County only to end up broke.<br /></em><br />Salt Lake Tribune<br /><br />Back in 2006, Rick Koerber was a phenomenon.<br /><br />He could charge up to $2,000 for his real-estate investing seminar and 200 people would show up.<br /><br />So entranced were investors by Koerber's "Equity Mill" program that they poured at least $100 million into businesses operated under the FranklinSquires Cos. name.<br /><br />Koerber called himself a "Latter-day capitalist." He had his Free Capitalist Project, a "university" and a radio program. He supported the failed school voucher movement and flexed political muscle against regulators. He had Ferraris and Maseratis and an Alpine mansion.<br /><br />Then in 2007, credit tightened and housing values plummeted. The companies stopped making interest payments; lawsuits followed. Koerber lost his home and his car.<br /><br />In May, a federal grand jury indicted him for operating an alleged Ponzi scheme, charging him with mail and wire fraud and tax evasion. More charges are expected.<br /><br />Koerber claims innocence.<br /><br /><strong>"Honestly," he said of himself and his partners, "we weren't that experienced in business, and we weren't that experienced in real estate. We were just ambitious." </strong><br /><br /><strong>A history </strong><br /><br />Claud Roderick "Rick" Koerber was born March 6, 1973, in Casper, Wyo., to an unmarried cocktail waitress. He never met his biological father.<br /><br />When he was about 6 months old, his mother, Linda, married Ted Edward Koerber, who adopted Rick. They divorced when the boy was about 4 .<br /><br />"He was a big drunk, an alcoholic," Koerber said in an interview before the indictment. He saw Ted only once after the divorce, visiting him in jail at Christmastime.<br /><br />Linda raised him in Casper with her parents' help. Koerber excelled in debate in high school, but by 17 found himself searching for a foundation.<br /><br />On a rainy Easter Sunday, he answered the door to Mormon missionaries. "I said, 'Tell me, does God have a Dad?' That's how I started. Less than a month later, I got baptized."<br /><br /><strong>LDS capitalist </strong><br /><br />Koerber's LDS religion would figure prominently in his life and Utah businesses. But some think he went too far.<br /><br />In at least one presentation in St. George, Koerber announced the presence of Hartman Rector Jr., a former LDS general authority. Gordon Hamm, a software engineer in attendance, thought Koerber's actions were inappropriate.<br /><br />"The church wouldn't have wanted that, and that was my beef," said Hamm, who wrote Koerber and Rector letters protesting the implied endorsement.<br /><br />Members of several LDS wards Koerber lived in also invested, influenced by his church membership, said David Doerr, a real estate broker who Koerber sued over comments on a blog.<br />"I know of at least two families who lost their homes because they invested," said Doerr, who attended the same Spanish Fork ward as Koerber. "But that's the tip of the iceberg."<br /><br />James W. Smart of Salt Lake City cited religion as a factor when he and his wife invested equity from their home with Gabriel Joseph, a co-founder of FranklinSquires Cos. who ran one of the companies, Annuit Coeptis, that also fed money into the operation.<br /><br />"He'd say the right things ... 'Some people use the money to go on missions' and stuff like this," said Smart, a church employee.<br /><br /><strong>Wyoming failure</strong><br /><br />Koerber got an associates degree in liberal arts and general studies from Casper College, then attended the University of Denver on a debate scholarship from 1993 to 1996, studying religion and public policy but apparently never graduated.<br /><br />He went to work for Xerox and managed to save $10,000 that he used to start a company that fixed computers. He returned to Wyoming and also formed Global Central, an Internet service provider. The company did well, according to Koerber, and in 2000 he decided to take the parent, National Business Systems, public. In doing so, he ran afoul of Wyoming regulators who alleged he misled investors about the company's financial condition and failed to reveal most of the money would fund sales commissions and current operations costs.<br /><br />By September 2001, Koerber and wife Michelle filed for bankruptcy. In court, the couple listed their cash on hand as $5.<br /><br />Flat broke, the couple moved to Orem, where Koerber wanted to become an LDS seminary teacher.<br /><br /><strong>Lessons learned?</strong><br /><br />The Wyoming sanctions weighed on Koerber.<br /><br />In organizing FranklinSquires in 2004 with seven former students from his seminars, Koerber said he consulted an attorney because he didn't want to get in trouble with regulators. He said the attorney told him, "If you're all business partners and you're all actively involved in managing the company and you're all using your own money, no problem."<br /><br />But then, Koerber said his insurance agent, Les McGuire, asked him about investing after seeing Koerber's financial records when he purchased a policy.<br /><br />Koerber went back to attorneys to see how McGuire, who later died in a plane crash, could invest. The question was how he could accept outside investors without registering with the state Division of Securities or federal Securities and Exchange Commission, which would trigger a number of requirements about disclosing financial and other information about the company and its owners.<br /><br />He said he learned he could bring McGuire on as a partner. That advice led to the creation of Founders Capital, owned 50 percent by McGuire and the other half by FranklinSquires.<br /><br />"Once we did that we did not have to comply with all these other regulations," Koerber said. "We had good attorneys giving us that advice."<br /><br />Humble beginnings » Once in Orem, Koerber and his wife found a home they rented for $800 a month, though it was strewn with mouse feces.<br /><br />Koerber studied to become a seminary teacher but said he eventually was told he could not teach LDS religious classes unless he made good with Wyoming investors.<br /><br />"I didn't want to be in business; I wanted to pay back the investors I had from my previous business," he said.<br /><br />Koerber had seen an infomercial for the Carleton Sheets investment program that promised to teach "how to invest in real estate with no money down." Without a credit card, he couldn't get the program, so he went to work as a telemarketer for FranklinCovey Coaching, which sold it.<br /><br />"At night I'd go over and read it and pretty soon I made copies of it," Koerber said. "I'd sneak the videos out and watch them."<br /><br />Using what he learned, Koerber and his wife bought a Spanish Fork home for $135,000 from owners willing to finance the deal themselves with no money down. The monthly payment was $805 for a house nearly identical to Koerber's in-laws' two blocks way.<br /><br />"They worked their whole lives to have this house, and here I was this failure in business who had no money and no credit and we're moving into this house and I had increased my expenses $5 a month. I thought I was the smartest guy in the world and I said I got to do this some more. ... It was like hallelujah."<br /><br /><strong>'Equity Milling'</strong><br /><br />Koerber built on the Carleton Sheets method to create his "Equity Milling" program. He began buying and selling houses and sharing his technique, charging students as much as $2,000.<br /><br />"I thought to myself, geez, one or two sales a month and you're going to make as much as you make as a seminary teacher."<br /><br />Dennis and Marietta Baca, a retired couple from Aurora, Colo., in September 2005 received an invitation from Koerber for a Denver seminar conducted by Gabriel Joseph, one of FranklinSquires owners.<br /><br />According to a lawsuit they filed in Colorado, Joseph described Koerber as a "brilliant real estate investor" and encouraged attendees to sign up for an instructional program. The Bacas paid $7,285 for an Internet-based course and also traveled to Provo for classes.<br /><br />The Bacas borrowed $55,000 against their rental property and used $40,000 from her 401(k) to invest in Koerber's operations. Eventually, they put in another $30,000 from credit card advances.<br /><br />They received monthly interest payments until the checks stopped in October 2007.<br /><br />'God is a capitalist' » His clients, Koerber said, were usually people "looking to supplement their income or get out of what they were doing."<br /><br />"They stayed up at night watching get-rick-quick infomercials ... Most of these people were average lower middle-class people who didn't like being lower middle class."<br /><br />For the once-broke Koerber, 36, and his partners, most 30-something Utah County residents, the money flowed in -- so much so that the lead-in song to his Free Capitalist show was "Money, Money, Money." by Abba.<br /><br />Koerber graduated from the Spanish Fork house to a 13,850-square-foot mansion in Alpine.<br /><br />At meetings and on his radio show in July 2008, Koerber told a story about the expensive automobiles he and others viewed as advertising their companies' success.<br /><br />Koerber said he went to a car dealership with Joseph, who wanted to buy a new Ferrari.<br /><br />"I had driven my lowly Maserati up there to get worked on," Koerber said. "Basically I was sitting there and didn't want to drive a loaner car back home ... So I found a Ferrari on the showroom floor ... and so I bought it for $205,000 and wrote a check for it."<br /><br />But telling the story -- with relish --- on his radio show, Koerber was incensed by a listener who criticized him because he found the story clashed with Christian teachings.<br /><br />"God is a capitalist, my friend," Koerber told listeners and his critic.<br /><br />When Koerber drove the car home, a neighbor who owned a minivan remarked that people in other parts of the world were starving. But Koerber would have none of that, particularly after selling the new Ferrari a few months later for about $20,000 more than he paid.<br /><br />"So I drove that car around for two months and it cost me less than it cost you to drive around in your self-righteous minivan," he said.<br /><br /><strong>Out of control</strong><br /><br />After McGuire, who died later in a plane crash, bought in through the creation of Founders Capital, a real estate broker named Paul Bouchard who operated Hunters Capital asked about investing, Koerber said.<br /><br />Other people set up funds and also began to "lend" money, with Founders Capital agreeing to pay, according to the indictment, around 5 percent per month. A number of these feeder funds began to create their own "downlines" of investors in which each person who recruited new money got a piece of the interest.<br /><br />Koerber insists the funds and individuals were not investors but made loans, a legal distinction that could come into play in the government's case against him.<br /><br />Federal officials declined to provide an estimate of the number of people involved, saying only it could be in the hundreds. David Shipley, a certified investment adviser, said FranklinSquires was all the buzz among some Utah County investors.<br /><br />"If I were to guess, more money from Utah County investors ... went into this project, to put it politely, than any other business that ever has come into this area," Shipley said.<br /><br />Koerber said his obligation is only to first-line lenders with whom Founders Capital had a contractual relationship.<br /><br />He did not initially know of or encourage perhaps the largest investor, Hunters Capital, or others to form downlines of investors, Koerber said. Promoters such as Bouchard used him and his seminars to solicit investments without his knowledge, he claimed, even though he acknowledged Bouchard was a friend whose offices were in the FranklinSquires building.<br /><br />"He would take a guy, a neighbor who wanted to invest and he would bring [him] to one of my seminars. He would use that as credibility. The next day he'd say 'OK, give me $200,000 and I'm just going to loan it to Rick.' "<br /><br />Bouchard, who did not return a voice mail seeking comment, sent more than $10 million he gathered in Founders Capital. He pleaded no contest to criminal charges and has been ordered to repay $8.83 million.<br /><br /><strong>Huge annual return</strong><br /><br /><strong>Koerber denies running a Ponzi scheme, and blasts the government for loosely throwing around that term. He said he told investigators the investments were all backed by equity in property or businesses.<br /></strong><br />"I can't say we've never paid interest with new capital," Koerber said. "That's not a big deal, and all our investors know that. But on balance, we're by far in the black in terms of more assets than liabilities."<br /><br />Yet to meet its obligations of 5 percent or so a month, the "equity milling" operation would have had to produce a huge annual return. For example, $100,000 at a simple interest rate of 5 percent per month would mean that the funds would have had to return an interest rate of 60 percent after a year or $60,000 to meet the company's obligation. Interest compounded monthly would mean a return closer to 80 percent would be required.<br /><br />"I don't see legitimately how anybody could take that promise [of investing in real estate as FranklinSquires did] and make a 5 percent a month return on investment," said Tom Eldredge, a partner at the Grant Thornton accounting firm in Salt Lake City. "That's very unusual."<br /><br />Plus, the indictment alleges about half of the $100 million taken in by FranklinSquires was used for purposes other than real estate investing, thus making meeting its obligations even less probable.<br /><br /><strong>'A lot of freakin' money'</strong><br /><br />In 2007 the housing bubble that provided the fuel for the "equity mill" to work on such a large scale burst, bringing Koerber's operation down. FranklinSquires had assets in the form of houses all over the country, Koerber said. But as prices fell, it no longer had equity in the houses and, even if it could sell, wouldn't make a profit needed to service its debt.<br /><br /><strong>"So we became illiquid,"</strong> Koerber said.<br /><br />By that time, the 50 entities involved in raising money for Founders Capital had shrunk to nine. But to those, FranklinSquires still owes about $30 million after reducing the debt from $120 million, much of it through trading equity in FranklinSquires.<br /><br />That $30 million is "still a lot of freakin' money," Koerber said, but he vowed to pay it back "even if takes another two years or five years."<br /><br />Meanwhile, in court Koerber finally agreed in a foreclosure proceeding to vacate his mansion. The bank repossessed his Mercedes S600. A court-appointed attorney represents him.<br /><br /><strong>Ripples in the pond</strong><br /><br />The FBI and the state Division of Securities continue to investigate. At least 13 of the investor companies face lawsuits or sanctions from regulators. More federal charges are expected.<br /><br />Smaller investors are out the equity in their homes and are working to save again for retirement or to repay money borrowed on credit.<br /><br />Doerr, the broker, said real estate in Utah County where FranklinSquires or its students bought homes likely will show still greater effects from falling prices and evaporated equity.<br /><br />Some county residents now own investment homes they must pay mortgages on until they figure out what to do with them, said Shipley, the financial adviser. Others have second or first mortgages on homes they had already paid off.<br /><br />"Especially for Utah County, some of the worst stories are the couples who are retired and put the entire equity value of their house or their entire life savings into this organization," Shipley said. "Now they don't know whether they have anything to show for it."<br /><br /><strong>This is a story that appeared today. We will provide our commentary on an upcoming post</strong> on this site as well as over the Western Capital Multimedia Network<br /><br /><a href="http://www.robertpaisola.com/">Robert Paisola<br /></a>CEO<br /><a href="http://www.robertpaisola.org/">The Western Capital Foundation</a>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-433321465681915004.post-19646725520701087162009-06-26T00:23:00.000-06:002009-06-26T00:25:12.350-06:00A.G. denies political pressure swayed Koerber case<table width="100%" border="0" cellpadding="8"><tbody><span id="slt_site"><span id="Article"></span></span><tr><td class="articleTitle">A.G. denies political pressure swayed Koerber case</td></tr><!--subtitle--><tr><td class="articleSubTitle">Alleged scheme » Office says there wasn't enough evidence; feds then took the case.</td></tr><!--byline--><tr><td class="articleByline"><p>By Robert Gehrke</p><p>The Salt Lake Tribune</p><br />Salt Lake Tribune</td></tr><!--date--><tr><td class="articleDate">Updated:05/29/2009 09:26:52 PM MDT</td></tr><tr><td><table width="100%" border="0" cellpadding="0" cellspacing="0"> <tbody><tr valign="bottom"> <td width="44%"><img src="http://extras.mnginteractive.com/live/media/site297/2005/0325/20050325_032046_PrintLogo.gif" vspace="0" width="300" border="0" height="39" hspace="0" /> </td> <td class="articleByline" width="56%" align="right"><img src="http://extras.mnginteractive.com/live/media/site297/2005/0325/20050325_033514_PrintURL.gif" vspace="0" width="159" border="0" height="39" hspace="0" /></td> </tr> </tbody></table> <hr size="1" noshade="noshade"></td></tr><tr><td height="10"><br /></td></tr><tr><td class="articleBody"><p> The Utah Attorney General's Office declined to take action in late 2007 against Rick Koerber, the "Free Capitalist" charged this week with running a massive Ponzi scheme, but officials from the office say the decision had nothing to do with pressure from Koerber or a state lawmaker. </p> <p> The Utah Division of Securities, which had been investigating Koerber's complex web of businesses, prepared a civil complaint against the Alpine businessman at the end of 2007 and took it to Kirk Torgensen, the chief deputy at the attorney general's office, for screening. </p> <p> "They declined to file the case," said Francine Giani, director of the Utah Department of Commerce. </p> <p> Torgensen said the information given the attorney general didn't have the supporting evidence that would have been needed to file the complaint. </p> <p> "All we had presented to us at that point was a bare-bones complaint," he said. "What we specifically requested was all the evidence and information to support each of the allegations in the complaint. ... Had that follow-up information been provided, we would have proceeded on the case in a normal course of business." </p> <p> Koerber said he was relieved when he heard the attorney general's office had decided not to file the case. "I figured, finally, somebody with some common sense," he said. </p> <p> Instead, Giani said she made the decision to take the information the division had gathered and turn it over to the U.S. Attorney's office, which announced a criminal indictment against Koerber this week. </p> <p> The decision not to pursue the civil complaint came on the heels of a series of meetings that Rep. Carl Wimmer, R-Herriman, arranged with several powerful officials, including then-House Speaker Greg Curtis, Attorney General Mark Shurtleff, Torgensen and several other state lawmakers. </p> <p> It also came shortly after the legislative auditor -- at the request of Wimmer and Rep. Jim Bird, R-Sandy -- had launched an audit of the securities division. </p> <p> Mark Pugsley, a Salt Lake City attorney who frequently battles the division and until recently served on the division's advisory board, said individuals in the division have told him that there was considerable political weight thrown behind Koerber. </p> <p> "There were political pressures as I understand it that were brought to bear with regard to that case and Mr. Koerber is connected and involved politically and I think he used those contacts he had to put pressure on the state to drop the case," Pugsley said. </p> <p> In an interview Friday, Koerber said he never asked Shurtleff or Curtis for favors, but he wanted the government to be fair and Shurtleff assured Koerber his office would be. </p> <p> "I said 'They're on a witch hunt and I have some evidence to back that up,'" Koerber said. "[Shurtleff] said 'We're not in the business of rubber-stamping any witch hunt.' He said, 'Relax, the Department of Commerce doesn't control the Attorney General's Office.'" </p> <p> Torgensen said those meetings in no way influenced the attorney general's decision. </p> <p> "No. No. Absolutely 100 percent no," he said. "Nothing Mr. Koerber said, nothing he protested, influenced the outcome of this case. Nothing. And that's the absolute truth, not from Mark Shurtleff's perspective, not from my perspective." </p> <p> Torgensen said Shurtleff told him to "take the case wherever it leads," and Wimmer has said he simply arranged meetings like he would for any Utahn, and didn't advocate on Koerber's behalf. </p> <p> "The idea that I tried to interfere with this investigation is just ludicrous," Wimmer said. </p> <p> This week -- nearly 18 months after the attorney general's office first declined the matter -- U.S. Attorney Brett Tolman announced a three-count indictment against Koerber, alleging he convinced investors to invest $100 million with his businesses. </p> <p> Half the money was used to pay supposed dividends to early investors, while the rest was used to finance a lavish lifestyle, including $1 million spent on cars, and $5 million he invested in the movie "Evil Angel," according to prosecutors. </p> <p> Melodie Rydalch, spokeswoman for the U.S. attorney, said the information provided by the securities division was used as reference, but the FBI and IRS did their own investigation. </p> <p> On Friday, Koerber, flanked by a handful of business associates and supporters, held a press conference at the Grand America Hotel, firing back at the state regulators. He played snippets from recorded conversations with regulators, where they expressed reservations about the case and told Koerber that he "had not broken any rule or law." </p> <p> Koerber called charges in the federal indictment "absurd and bogus," adding, "I am confident that I will be exonerated and that the allegations contained in the indictment will be shown to be patently false." </p> <p> Koerber also said he plans to file a federal civil rights lawsuit against several current and former state officials. </p></td></tr></tbody></table>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com1tag:blogger.com,1999:blog-433321465681915004.post-22337906122681578612009-06-26T00:18:00.001-06:002009-06-26T00:21:00.625-06:00Utah lawmaker wanted heads to roll for 'my friend'<table width="100%" border="0" cellpadding="8"><tbody><span id="slt_site"><span id="Article"></span></span><tr><td class="articleBody"><p> Rep. Carl Wimmer said Wednesday that he had asked Gov. Jon Huntsman Jr. to fire the head of the Utah Department of Commerce during its investigation of Rick Koerber, who last month was indicted on federal charges of running a multimillion-dollar Ponzi scheme. </p> <p> A series of e-mails from Wimmer, obtained through an open records request, also shows that the Herriman Republican had gone to the governor with concerns about the "witch hunting" of Koerber and offered his help to the indicted businessman, whom he referred to as "my friend." </p> <p> Wimmer had previously acknowledged arranging meetings for Koerber with Attorney General Mark Shurtleff and various legislators, including then-House Speaker Greg Curtis, and appearing on Koerber's radio program. </p> <p> He also spoke at a Koerber event in Provo last April, but insists that he gave no special treatment to Koerber, who he considers an acquaintance and political supporter, not a friend. </p> <p> In January 2008, Wimmer e-mailed Tani Downing, the governor's general counsel, seeking a meeting with Huntsman, Shurtleff and Koerber to discuss a $30 million lawsuit Wimmer said Koerber planned to file against the Commerce Department for damages "due to the last three years of witch hunting." </p> <p> "The governor needs to know the depth of what is happening here ... it's enormous," Wimmer wrote. </p> <p> Wimmer said Wednesday that he didn't meet with the governor, but met with Downing and gave her a packet of information that Koerber had collected, including letters and transcripts of phone conversations with Commerce Department officials. </p> <p> A few months earlier, Wimmer had joined Rep. Jim Bird, R-West Jordan, in requesting an audit of the Commerce Department's Securities Division based on allegations that officials there had abused their investigative powers and persecuted Utah businessmen, including Koerber. </p> <p> "I wanted to make sure that was not the case here. If that was the case, I thought it could cause tremendous embarrassment to the governor, and I wanted to make sure he had that information," Wimmer said. </p> <p> The audit released in July 2008 found that the Securities Division had used coercive tactics and overstepped its authority. It mentioned Koerber's case only to say auditors did not examine that ongoing investigation. </p> <p> The Herriman Republican also said Wednesday that, before the meeting with Downing, he had urged the governor to fire Commerce Director Francine Giani, because he believed her agency was "out of control." He said that was based primarily on the allegations that led to his audit request and a disparaging e-mail that Wayne Klein, the former head of the Securities Division, sent to Shurtleff in 2007. </p> <p> In the e-mail, Wimmer said, Klein warned Shurtleff not to believe Wimmer's advocacy for Koerber because Wimmer was an investor in his businesses. </p> <p> "There was zero truth to this e-mail. Zero truth," Wimmer said. "It was made up to disparage me and make me look bad, and this was allowed by [Giani's] office and that should not be allowed." </p> <p> Wimmer says he didn't invest money with Koerber, but he had taken an investment course that Koerber offered, which Wimmer never completed. </p> <p> "The governor has trusted Francine and supported her in her efforts to do her job and accomplish the mission of the department," said Huntsman's spokeswoman, Lisa Roskelley. She said the governor was briefed occasionally on the status of the Koerber probe. </p> <p> In another e-mail Wimmer sent in January 2008, the legislator asked Koerber about an event Koerber was planning, at which Wimmer hoped to speak and solicit donations and volunteers for his re-election campaign. </p> <p> "Being that I would benefit greatly from this, I'd be happy to help coordinate or plan it," Wimmer wrote. "I have about three weeks left to fundraise, then I'm in [legislative] session." Donations to lawmakers are banned during the 45-day session. </p> <p> Wimmer joined Bird that year in sponsoring legislation that would have stripped the Division of Securities of much of its enforcement power. The bill failed but a watered-down version passed this winter. </p> <p> Both the request to meet with the governor and the correspondence with Koerber came just a few weeks after the Commerce Department had asked Shurtleff's office to file a civil complaint against Koerber. </p> <p> The attorney general's office balked at filing the case, seeking more evidence, which Chief Deputy Attorney General Kirk Torgensen previously said -- and the office reiterated Wednesday -- never came. Instead, Giani took the case to the U.S. attorney, who charged Koerber on May 26. </p> <p> In mid-April 2008, Koerber contacted Wimmer, thanking the representative for what he had done "to assist me and my associates," and informing Wimmer that he had been receiving death threats "as a result of the lies coming from the Department of Commerce." </p> <p> Wimmer provided Koerber with Shurtleff's e-mail address and offered his sympathies. "I am so sorry that you are going through what you are, Rick," Wimmer wrote. "I want to help get you through this garbage." </p> <p> "Let me know what else I can do for you," Wimmer wrote, and updated Koerber on the status of his concealed weapons permit that had been stalled at the Bureau of Criminal Investigation. "Your permit should be there any day!" </p></td></tr><tr><td width="100%"><!-- Print Footer not found for this site --><span id="slt_site"><span id="Article"><p>By Robert Gehrke</p><p>The Salt Lake Tribune</p></span></span></td></tr><tr><td align="center"><input value="Close Window" onclick="javascript:window.close();" type="button"></td></tr></tbody></table>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-433321465681915004.post-23692324113152230412009-06-19T13:16:00.005-06:002009-06-19T15:59:27.175-06:00Rick Koerber, CEO of Franklin Squires arraigned in Federal Court in Salt Lake City, Utah, Robert Paisola Reports<span style="font-weight: bold;">For Immediate Release<br /><a href="http://www.robertpaisola.com%20/">by: Robert Paisola</a><br />Copyright 2009 Western Capital Multimedia</span>, All Rights Reserved<br />801-619-4700<br /><br /><span style="font-size:130%;">SALT LAKE CITY, UT. — Appearing upbeat and with a big smile, Rick Koerber, the CEO of Franklin Squires Companies left the Federal Courthouse in Salt Lake City, Utah flanked by his attorney Mr. Jerry Mooney, a Salt Lake City lawyer and past president of the First Amendment Lawyers Association, his wife and his personal assistant, eager to chat with the media. This is the first public appearance since Claud R. Koerber was charged in a three count indictment last month.<br /><br />Federal prosecutors charged Koerber, the President and Chief Executive Officer of The Franklin Squires Real Estate and Financial investment Company, with operating a Ponzi Scheme, claiming to have reached 100 Million Dollars at its prime. <br /><br />Koerber followed suit with the United States Attorney in Utah, Brett Tolman, held a news conference to announce the return of a grand jury indictment charging Koerber. Koerber then determined that he would hold his own press conference from the luxurious Grand America Hotel, in Salt Lake City.<br /><br />Watch the Full Press Conference Live Here.<br /><br /><br /></span><embed src="http://www.metacafe.com/fplayer/2899622/the_official_rick_koerber_franklin_squires_indictment_video_by_robert_paisola.swf" wmode="transparent" allowfullscreen="true" allowscriptaccess="always" name="Metacafe_2899622" pluginspage="http://www.macromedia.com/go/getflashplayer" type="application/x-shockwave-flash" width="400" height="345"></embed> <span style="font-size:130%;"><br /></span><span style="font-size:78%;"><span style="font-size:130%;">The Official Rick Koerber Franklin Squires Indictment Video by Robert Paisola<br /><br /><br />In the courtroom, flanked by U.S. Marshals, Koerber rocked back and forth, staring at U.S. Magistrate Alba as he carefully enunciated the charge against him. He asked him if he was, in fact, the Claud R. Koerber suspected of the crimes, and he said, "Yes."<br /><br />After stating his claim of NOT GUILTY, Koerber was then provided with a list of restrictions outlined on the Order Setting Conditions of Release that he can not violate, including the requirement that he turn in his United States Passport, Maintain or actively seek employment, Maintain residence and do not change without prior permission of Pretrial Services, No travel outside the State of Utah without prior written permission of Pretrial Services, avoid all contact with the following named persons who are considered either alleged victims or Potential Witnesses<span style="font-weight: bold;"> (NO NAMES PROVIDED ON COURT ORDER) </span>(<span style="font-weight: bold;">WHERE ARE THE VICTIMS AND WITNESSES?</span>) refrain from possessing a firearm, destructive device or other dangerous weapon, to obtain no additional passport, and to report on a regular basis to the supervising officer as directed, and was ordered to be processed and released by the United States Marshals.<br /><br />If convicted on the federal charges, Koerber could spend a maximum of 45 years in federal prison and face a large fine.<br /><br />The United States Attorney in Charge of the case turned over 7 DVD's containing the evidence that will be used to support the charges that were primarily indexed by Koerber on the first 5 disks at an estimated personal cost of $80,000.00 to his firm .<br /><br />Outside the courthouse, Attorney Jerry Mooney, called this a "complex Financial Case" and carried with him what appeared to be the 7 DVD's of data that was presented in court, partially prepared by Koerber!<br /><br />Koerber commented in an exclusive interview with Robert Paisola of Western Capital Multimedia<br /><br /><span style="font-weight: bold;">"I am eager to have my day in court and I am convinced that upon presentation of the evidence against me that I will be fully vindicated, he continued, "It truly amazes me that the data that we were given today is partially the same data that I provided the State of Utah in my own defense!" he concluded by stating " Where are the Victims? Where are the Witnesses?" The judge himself gave me a document that you have Rob, that states on page 2, paragraph 7(D)not to have contact with the Victims or Witnesses.... but there are no names" </span><br /><br />Could that be why there are no victims listed in the indictment?<br /><br />Koerber stated that he has hundreds of hours of Audio, Video and Documented data that we were privy to prior to the indictment. WCM has not seen the investigative data that was presented at today's hearing. <br /><br />Koerber will appear in court again on August 31, 2009 .<br /><br /></span><a href="http://www.metacafe.com/watch/2899622/the_official_rick_koerber_franklin_squires_indictment_video_by_robert_paisola/"><span style="font-size:130%;"><br /></span><br /></a></span>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-433321465681915004.post-59599622321048102452009-06-08T11:25:00.000-06:002009-06-14T06:20:55.807-06:00RICK KOERBER - THE PRESS CONFERENCE NOW LIVE, By Robert Paisola<strong>THE RICK KOERBER PRESS CONFERENCE RELEASED IN HD VIDEO- UNEDITED!</strong><br /><br /><div style="padding-left: 0px; display: none;" ontop="true"></div><div style="padding-left: 0px; display: none;" ontop="true"></div><div style="padding-left: 0px; display: none;" ontop="true"></div><embed src="http://www.metacafe.com/fplayer/2899622/the_official_rick_koerber_franklin_squires_indictment_video_by_robert_paisola.swf" wmode="transparent" allowfullscreen="true" pluginspage="http://www.macromedia.com/go/getflashplayer" type="application/x-shockwave-flash" height="345" width="400"></embed><br /><span style="font-size:78%;"><a href="http://www.metacafe.com/watch/2899622/the_official_rick_koerber_franklin_squires_indictment_video_by_robert_paisola/">The Official Rick Koerber Franklin Squires Indictment Video by Robert Paisola</a> - <a href="http://www.metacafe.com/">The most amazing bloopers are here</a></span><br /><span style="font-weight: bold;">This is the official link to the full Rick Koerber Franklin Squires Press Conference. This is a 38 Minute UNEDITED Video. We will provide more details as they come in, Stay tuned for further details.</span><br /><br /><span style="font-weight: bold;"><a href="http://tinyurl.com/lygdkd">WATCH THE FULL RICK KOERBER FRANKLIN SQUIRES INDICTMENT PRESS CONFERENCE IN HD VIDEO NOW!</a><br /></span><br /><br />To your Success<br /><br />Robert Paisola<br />CEO<br /><a href="http://www.robertpaisola.com/">RobertPaisola.com </a><br /><br /><br />PRESS RELEASE<br /><br /> * RICK KOERBER RESPONDS TO FEDERAL INDICTMENT<br /> * ANNOUNCES A MULTI-PARTY FEDERAL CIVIL RIGHTS LAWSUIT, AND<br /> * RELEASES TRANSCRIPTS AND RECORDINGS OF STATE OFFICIALS ENGAGING IN CRIMINAL VIOLATIONS OF UTAH LAW AND OF THE STATE’S CHIEF INVESTIGATOR CLEARING HIM OF ANY WRONGDOING<br /><br />SALT LAKE CITY -The following statement was delivered by FranklinSquires President & CEO Rick Koerber at a press conference held at the Grand America in downtown Salt Lake City, UT at 3:30pm on Friday May 29, 2009-<br />.PDF version of Mr. Koerber’s Remarks (This .pdf version contains footnotes describing the source of each quote and/or sound clip, these footnotes are omitted in the .html version)<br /><br />“My name is Rick Koerber and I am the President and CEO of FranklinSquires. In 2004 employees within the Utah Department of Commerce first contacted me and informed me that my business was being investigated for what the Division of Real Estate deemed “suspicious behavior.” During an in person meeting with several Department employees I was told that “while there was not currently any evidence to support their suspicion” I was being investigated for fraud. The investigation grew and expanded to last more than five years and it included the Division of Real Estate, Consumer Protection, Securities, Licensing, and the Division of Corporations & Commercial Code. After failing to find any evidence that I was involved in breaking any “rule or law” and after failing to convince any state agency to take civil or criminal actions against me, and specifically after their own attorneys suggested there was not sufficient evidence to bring charges, Francine Giani continued shopping for a prosecutor until in January or February of 2008 when, as she recently admits, she had the files sent to the US Attorneys office.”<br /><br />“As you all know, after several years of speculation, conjecture and an extended whisper campaign of rumors and grand jury leaks, on Tuesday of this week a three count indictment was returned by a federal grand jury accusing me of certain crimes supposedly committed between 2004 and December 31, 2008 related to a purported “$100 million dollar Ponzi-Scheme.”<br /><br />RESPONSE TO INDICTMENT<br /><br />“In response to this indictment I can only say that the allegations made therein are absurd and the charges are false. Up until now everything done by the state and federal government has been done in the shadows, making it virtually impossible for me to fight to defend my reputation, my business, and my associates. But, I can fight an indictment full of absurd and bogus charges and that is exactly what we are gearing up to do. I am looking forward to having my day in court, to having the real facts at hand laid before an objective court, and trusting a judge and a jury of my peers to come to a fair and reasoned conclusion. I am confident that I will be exonerated and that the allegations contained in the indictment will be shown to be patently false.<br /><br />“Today I ask only that those concerned with this case exercise care in avoiding a rush to judgment and remember that, contrary to the behavior of our government officials on Tuesday (who were literally applauding and congratulating each others as if some conclusions had been reached about me and my business activities), an indictment is not a statement of guilt, and it simply outlines the case for the prosecutor. I am unsure as to why the United States Attorney and other agencies involved have decided to launch a trial of this case, first in the media. However, I am confident that trying the case in court, is a much better way to preserve my rights and to ensure that real justice is served.<br /><br />“After witnessing the government’s odd, premature celebration on Tuesday, I also feel to remind Mr. Tolman, Mr. Fuhrman, Mr. Brito, Mr. Walz, and Ms. Giani that in our system of government an accused person is presumed innocent until a contrary finding is made by a jury after an opportunity to answer the charges and a full airing of the facts.<br /><br />“Because this is a pending legal proceeding, it would be inappropriate for me to comment on the specific facts related to the charges or other matters that need to be decided during the future court proceedings. But, I will ask if the government is now taking the position that when any businessman invests millions of dollars into legitimate businesses and industries such as restaurants and movie production, that this is considered a personal expense. Are they suggesting that such sums are considered the same as admission tickets or meal expenses? If so I think several Utah small business owners who work in the restaurant and film industries would like to know that.<br /><br />“Nevertheless, I will repeat that I deny these allegations and declare, well in advance, that I will be entering a plea of “not guilty” on all counts and vigorously exercising my rights to bring a full defense. I do this first and foremost for myself, and I also do this for my colleagues and fellow entrepreneurs like those individuals standing behind me today, each of which is a local Utah business owner or entrepreneur. I also want to express my personal, deep felt appreciation for the patience, faith, support and strong efforts of virtually all of my colleagues, creditors, and clients. Rumors and false charges can bring a heavy toll on the innocent, and the only remedy I know is to stand up, tell the truth, and have confidence in the good people on both sides of our justice system-whose efforts, when given a chance to make the choice, almost always outweigh the shady and misguided efforts of the few abusive and overzealous government workers.<br /><br />ANNOUNCING INTENT TO FILE A FEDERAL CIVIL RIGHTS LAWSUIT<br /><br />“I also want to take this opportunity to announce my intention of filing, as soon as is legally permissible (at the conclusion of this pending criminal case, or earlier if legally possible) , a section 1983 Federal Civil Rights lawsuit naming several government officials and employees including but not limited to Department of Commerce Executive Director Francine Giani, Securities Enforcement Director Michael E. Hines, Susan Jones, Diana Parrish, Jonny Stewart, A. Gary Bowen, Jennifer Korb, and former Securities Division Director Wayne Klein.”<br /><br />“Because citizens are entitled by right to have their lives, their property and their liberty protected by all government workers, bringing a court action against the individuals named above is an appropriate way to address abuse and corruption. I do not make these charges lightly, for certainly I understand the consequence, and what it means to be openly accused of wrongdoing. Every citizen, whether in business or in government must be willing, when pressed, to be responsible and accountable for their conduct. I am willing to be accountable for mine and I will have my day in court. This civil rights action will hopefully require the government employees named above, to do the same.<br /><br />RELEASE OF RECORDS AND RECORDING<br /><br />Early in the week several media outlets began questioning Utah Representative Carl Wimmer and Utah State Attorney General Mark Shurtleff regarding their activities related to me. Some seemed to be suggesting that having an audience with me, by an elected official, was somehow inappropriate. Why a private citizen, asking to meet with his or her elected representative is ever, in any circumstance inappropriate, is a mystery to me. Are elected officials not representatives of each citizen? Should only special interests and lobbyists have access to government officials? If any citizen were to feel that a government bureaucracy was falsely accusing them, taking illegal actions, and doing serious harm to their business and family - wouldn’t any person so situated be interested in contacting his or her elected official to state their case? Or, instead, have we come so far that as citizens we are now willing to give up our constitutional rights to criticize our government and to petition our government for redress?<br /><br />Yesterday, the local media began reporting on the Utah Attorney Generals refusal to bring an action against me in 2008, citing a lack of evidence. I applaud KSL and reporter John Daley for beginning to uncover the facts related to this topic. When I say “beginning” to uncover the facts it is because there is much more to the story. Today, I have brought with me several selections of transcripts and audio recordings, and I’m releasing to the media (and to the public), essential information related to the rest of the story, both regarding the case the Attorney General decided not to bring and regarding the activities of Department of Commerce Executive Director Francine Giani and her staff.<br /><br />The reason I’ll be playing a selection of these audio recordings today is that the information contained in them is in some instances so sensational and so outstanding that only hearing the words coming out of the mouths of the government officials making these statements will anyone likely believe what they hear.<br /><br />Note: Because the most likely defense coming out of the Department will be the contention that these short segments are taken out of context, the full records of the phone calls, meetings, and the full printed documents will also be provided, as soon as possible, at the bottom of this page.<br /><br />Item #1 - Selected Transcript of Statement from John Brown (Ut. Dept. of Commerce, Division of Real Estate)<br /><br />In this transcript you will notice a clear violation of the law as described in title 61, Chapter 2, Section 11.5. This was John Brown’s concluding remark to me on my first encounter with the Utah Department of Commerce in 2004. He said,<br /><br /> Mr. Koerber, we haven’t yet identified any illegal or fraudulent activity on your part, but we do not like the way you are doing business and we have serious reservations and concerns. We will keep looking, and for the time being let me put you on notice - We cannot touch you, because you are not one of our licensees, however I will use the full power of this office to come down with both of my feet squarely in the chest of any Utah licensee who does business with you or FranklinSquires.”<br /><br />This kind of over reaching continued for years. At first, I sought an audience with then Department of Commerce Director Mr. Russell Skousen. When Mr. Skousen resigned from his position I hired him as my attorney to help me work to ensure that my businesses were structured and operating properly and to help communicate with state regulators to ensure that I was given fair treatment and individuals like John Brown did not simply have their way. Mr. Skousen and I have worked together now for years, and unfortunately the behavior by a few individuals in the Department of Commerce has only become worse over time.<br /><br />Item #2 - Selected audio recording of former Utah Securities Division Director Wayne Klein in discussion with me and two attorneys, in a meeting at the Division of Securities, in the presence of an attorney from the AGs office, and Enforcement Director Michel Hines.<br /><br />In this recording, Mr. Klein answers an inquiry, after he and Mr. Hines had both revealed that after several years of investigation no evidence had uncovered that I was involved in any wrongdoing. I asked Mr. Klien why he was so insistent that I admit to violations of the law in order to settle the investigation when no evidence or facts discovered in the investigation had yet implicated me. Mr. Klein’s response was telling-<br /><br />audio icon[Sound Clip #2a]<br /><br /> “We’re in an unusual situation here where we’re trying to find a solution before we get resolved all the factual questions…so we’re all sort of planning without necessarily knowing all the facts, so the next stage is to get the facts and then see whether or not the facts conform to the plan.”<br /><br />Item #3 - Selected transcripts and audio recording of Utah Securities Division Enforcement Director Michael Hines.<br /><br />While much controversy seems to exist now given the recent federal indictment, there was never a time when the state investigators told me that any evidence had implicated me in wrongdoing. The opposite was true. For the entire course of the state’s investigation (2004-2007), after learning detail after detail related to my businesses, the lead investigator Michael Hines regularly cleared me of any illegal behavior. The statement below is part of the introductory statement he made the first time we met in February of 2006.<br /><br /> “The Department has been investigating you and your companies over the last two years and as of this time has no evidence to suggest and I personally do not believe that you have been involved in wrong doing.”<br /><br />Even when troubling evidence started to surface about the business practices of some of Founders Capital’s creditors started to service, Mr. Hines clearly drew the distinction between their activity and mine.<br /><br />audio icon[Sound clip #3a]<br /><br /> “Rick, you recognize that what I call the bottom feeder LLCs here are going down to visit people to borrow money on their homes, cash out their entire retirements, to put money in that LLC to lend it up line to an LLC that goes up line to an LLC and you’re right, it doesn’t have any association with you.”<br /><br />Mr. Hines not only regularly told me of his findings, but he would openly tell some inquiring third parties the same thing. Towards the end of 2007, when asked by Jacob Dayton about the rumor that my business was a Ponzi-scheme, or a pyramid/multi-level scheme, Mr. Hines clearly explained that the investigation had not uncovered the facts to substantiate this claim.<br /><br />audio icon[Sound clip #3b]<br /><br /> DAYTON: So, I’ve also heard that Founders and Franklin are operating an illegal pyramid scheme, something along those lines. Is that true?<br /> HINES: I’ve not heard the word illegal pyramid scheme used.<br /> DAYTON: Well, some people call it ponzi-scheme, is that the same thing?<br /> HINES: Well, there is a difference in a ponzi-scheme and pyramid scheme. A pyramid scheme is nothing more than multi-level marketing where you build downlines. A ponzi-scheme merely means that you are paying old investors promised returns from new investors money. But certainly no one associated with the Division has used either of those terms in reference to this investigation basically because we don’t have the facts to reach any of those conclusions.”<br /><br />Between 2006 and 2007 I relied heavily on the advice and communication given to me by the Department of Commerce. They had reviewed my business operations thoroughly and regularly discussed with me their opinion and advised me and my attorneys on what they considered acceptable businesses. In October of 2007 I talked to Mr. Hines when he unequivocally told me-<br /><br />audio icon[Sound clip #3c]<br /><br /> “There is no conduct that has been isolated, to my satisfaction that you violated any laws or rules. There is none. You are not going to be put in jail, there is no warrant and I would tell you if there was. I’d say it. But, Rick there is not…No, you’re not going to be put in jail, I would talk to your attorneys, you and I and your attorneys would have lengthy discussions before charges were ever filed.”<br /><br />In the same call Mr. Hines suggested we meet and have a cup of tea together and discuss philosophy. His statements related to his opinion of my rumored involvement in ‘wrongdoing’ were regularly repeated to unrelated third parties. In the clip below, Mr. Hines-in talking with Jacob Dayton about my case-once again confirms this same opinion. Note: Mr. Dayton made this recording and provided me a copy.<br /><br />audio icon[Sound clip #3d]<br /><br /> Dayton: “You know Rick Koerber right?”<br /> Hines: “Sure, yeah, he and I have met several times.”<br /> Dayton: “I’ve heard he’s going to be charged with felony fraud or something, that’s what I’ve heard. Do you know what that’s all about?”<br /> Hines: “Hmmm. No idea. There is an ongoing investigation relative to the collection of money by a lot of LLCs and uh, there have been decisions made on some individuals that it appears will be charged with criminal conduct, but right now Rick Koerber is not one of those. So, I don’t know what that is. There is a tremendous amount of misinformation in the market.”<br /><br />What we would learn during the course of the investigation is that the most serious “misinformation in the market” the Mr. Hines referenced, often came from the Department of Commerce.<br /><br />When, the story broke yesterday, that Mr. Shurtleff had declined to bring charges against me at the conclusion of the Department’s investigation, his decision was consistent with most of Mr. Hines statements throughout the investigation.<br />Some might suggest that Mr. Hines was not being genuine, that perhaps he was attempting to mislead me as part of his investigation. Evidently this is sometimes permissible by police offers or other law enforcement agents. Unfortunately for Mr. Hines and others in the Division of Securities, the Utah legislature explicitly has prohibited any person from using deception in conjunction with enforcing the securities laws, no matter the role they play. The law describes any false statements made in this context as felony violation of the law.<br /><br /> 61-1-16 - False statements unlawful<br /><br /> It is unlawful for any person to make or cause to be made, in any document filed with the division or in any proceeding under this chapter, any statement which is, at the time and in the light of the circumstances under which it is made, false or misleading in any material respect.<br /><br />If both Mr. Hines and Mr. Shurtleff concluded that there was no evidence that justified brining any charges why was Ms. Giani (who is not a lawyer and not family with the law) so persistent? Well, only she knows the full answer, but the following information might help, at least in part, to clarify the rest of the story.<br /><br />Item #4 - Selected audio recording from Wayne Klein, former Director of the Division of Securities.<br /><br />The statement below was made by Mr. Klein following my August 31, 2007 radio broadcast where I openly criticized him and his division, calling him a ‘commissar’ (though not by name) and had suggested that the state legislature should reduce the size of government and add some check or balance against the unlimited powers of the Division of Securities.<br /><br />audio icon[Sound Clip #4a]<br /><br /> “Part of the problem is that I’ve been painted in a corner because you’re client has gone on the radio and publicly accused us of stuff. He’s got legislators out there trying to cut our powers because what we’re doing as if he’s entirely right in what he’s doing and government is unfairly coming after him. So ordinarily we have more flexibility but where I’ve got public attacks coming in saying we’re being accused of being unfair…[interrupted].”<br /><br />It’s important to note that this is the same conversation where Klein admits he does not have the facts (see Sound Clip #2a) and the same conversation where Hines admits the problems being uncovered don’t “have anything to do with” me.<br />Mr. Klein was so “peaked” that even after he had been provided with a copy of the Founders Capital Balance Sheet showing that the company had approximately sixty million dollars more in assets than it did in liabilities and after his staff had spent the time necessary to investigate the supporting records-including real estate agreements securing the majority of the balance sheet equity-which review included looking at purchase contracts, appraisals, loan documents, property reports, lease agreements, etc.,-nevertheless, Mr. Klein continued in that same meeting to make even more startling demands.<br /><br />In this meeting and subsequent related meetings Klein explained that he had reviewed the matter with his superior (Francine Giani) and that in order for me to avoid being charged with criminal violations of the law (though, again, in the same meeting he admitted there was no evidence to warrant it) Mr. Klein demanded that I remove my billboards, that I and my partners sell our “expensive cars” and as part of his written counter proposal (on official Department letterhead) demanded that I agree to a 3rd party administrator of my company who would liquidate the companies assets.<br /><br />Perhaps most alarmingly, his written offer included that demand that I sign a written affidavit promising not to criticize (in public or in any future court) “any action” the Department took against investors in my business.<br /><br /> “Mr. Koerber will provide an affidavit to the Division affirming…[that he] will not claim publicly or in court that any action the Division takes against investors in Founders…is impeding the companies efforts…”<br /><br />As Mr. Klein continued to insist on his demands, in meeting after meeting he grew more insistent. In other communications he suggested that if I resisted his demands, he and his department would start communicating that my business was a multi-level ponzi-scheme.<br /><br />When asked why he would communicate such a claim given that he and his staff had investigated financial statements and related documenting, making such a claim absurd, he informed candidly responded that despite the financials, if he and his Department made the allegation of a ponzi-scheme, it would “stick to me like glue” and that he had contacts in the media who would tell the story. The first media source to publicly allege that my business was a ponzi-scheme was City Weekly reporter Eric Peterson. Evidently, City Weekly was publishing its information with Klein as a source, because an insider later forwarded me a copy of an email sent from Klein to City Weekly (who had since been forced to resign from office) congratulating Eric on the story and asking if, now that the story had been published if “it was acceptable” for him to by Mr. Peterson lunch.<br /><br />Item #5 - Audio recording of Mr. Hines changing his story and telling third parties that my business was a multi-level scheme.<br /><br />While Mr. Hines sometimes insisted that “no one in the Division of Securities” would use the terms “ponzi-scheme” or “multi-level scheme” because the evidence did not warrant it, consistent with Mr. Klein’s agenda Hines himself spread this gossip to Jonathan Bond in a telephone conversation.<br /><br />audio icon[Sound Clip #5a]<br /><br /> “I know what happened in this case, clearly, everybody got carried away with this idiotic multilevel marketing of promissory notes is what occurred…they did violate state and federal law…as long as the money was coming this was a wonderful multi-level marketing program and then the money dried up.”<br /><br />Item #6 - Audio recording of Corporate Finance employee Gary Bowen carrying out the policy of Klein in a conversation with an unrelated third party.<br /><br />Hines was not the only one who later engaged in spreading gossip about me and my company after I refused to give in to the terms outlined by Mr. Klein. In November of 2007, Mr. Gary Bowen then in the Corporate Finance section of the Securities Division offered the following to Devon Anderson who had called about an unrelated matter. In an effort to “get the word out” made several startling, false, and criminal accusations.<br /><br />audio icon[Sound clip #6a]<br /><br /> “If [your friends have] invested in FranklinSquires they’re going to lose their money. FranklinSquires is putting the buzz out that the division is going to lock them up, that’s not so. We’ve seen their balance sheets and they’ve got a shortfall of about $60 million dollars so it’s just a matter of time before that collapses. So if you know anyone that’s invested, bye-bye they’ve lost their money…under securities regulations and rules, this secrecy concept, and that’s part of the FranklinSquires model, is fraud. Its just, it is.”<br /><br />Of course there is not, and never has been, any secrecy concept related to FranklinSquires. At the time of this statement the financials in possession of the Division showed approximately sixty million in assets that exceeded liabilities. I was so startled by this behavior by a government employee (whose statements directly impacted our ability to do business successfully) that I promptly called Mr. Bowen to challenge him on his statement. The following transcribed selection is from Mr. Bowen’s portion of our telephone conversation.<br /><br />audio icon[Sound clip #7a]<br /><br /> “Rick, I have not seen your financials. I don’t know that you’re going bankrupt. I don’t know where these people are getting that information… They’re not getting it from me… I’m not in the loop on investigations and so forth…I understand that you are in the process of dealing with either Mike or Wayne but I haven’t seen it…”<br /><br />CONCLUSION<br /><br />When the Attorney General’s office declined to bring charges against me in 2007, after the government had thoroughly investigated my business and on multiple occasions advised that there was “nothing illegal” about our business and that I “had not broken any rule or law” despite the gossip and rumors otherwise, I was relieved and thankful that in Utah we have an Attorney General who was more interested in the law than in retaliating against me for my political opinions, my criticisms, or my refusal to agree to a corrupt regulators unjust demands.<br /><br />I cannot imagine how anyone would suggest that Mr. Wimmer, in joining with other elected representatives, in calling for an audit of the Division of Securities, after learning of the kind of behavior, was doing me a favor. He was doing all Utahns a favor. Mr. Wimmer and his associates were clearly vindicated when the independent audit - which declined to include my case in its review since it was then an ongoing investigation - documented abusive prosecutorial and enforcement tactics by the division, a lack of leadership and policy guidelines for how and when to bring changes, lying and deception in settlement offers with innocent citizens, and several other very serious problems.<br />I did not invent the results of the audit. I did not influence the results of the audit. I am only astonished that after Wayne Klein resigned (one month after the approval of the audit) the rest of the leadership of the Department (Ms. Giani) and the head of Securities Enforcement (Mr. Hines) where most of the audit’s documented abuses took place)-are both still employed by the State. The results of that audit have to be the most under reported political and public policy event of the last year and a half.<br /><br />I want to thank not only Mr. Wimmer and Mr. Shurtleff, but the other government officials and representatives who listened to my evidence. Speaker Curtis, Rep. Dougal, Senator Stephens, and several others who all voiced agreement with me that Ms. Giani was known to be unable to effectively manage her department. In our breakfast meeting Mr. Shurtleff told me that given what he had learned about Mr. Klien when he had worked for the AGs office, he was certain that Ms. Giani did not have the qualifications to reign in someone like Mr. Klien who was known even in his past employment as chasing down personal vendettas rather than focusing on the law.<br /><br />I cannot believe that after Ms. Giani supported these activities, after Klein was forced to resign, after she unequivocally stood by him and publicly predicted that he and his department would be vindicated by the audit (which he most clearly was not) and after she herself was directly implicated in the audit results, and now after she has admitted that she (not being an attorney, nor authorized by the law to do so) went against the advice of the Attorney General, went against the facts uncovered in her case - and after all that she still has her job. Tuesday, was Ms. Giani’s ‘victory day’ as it was called, as she participated in the orchestration of that premature celebration (Tuesday’s press conference). But, because of what happened leading up to it, the indictment announced Tuesday is not just troubling news for me, it represents an ominous precedent for all Utah business owners.<br /><br />My statements today have not been to offer up any defense on my case whatsoever - I am satisfied to do that in court. I am willing to be accountable for all of my actions. I can only hope that with the release of this information, the governing authorities might take the necessary steps to ensure that Ms. Giani and her colleagues finally have to do the same.<br /><br />–ENDRobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-433321465681915004.post-90085334720083110542009-06-07T23:37:00.003-06:002009-06-08T00:52:49.406-06:00Rick Koerber , CEO of Franklin Squires Goes Live on CBS Television, by Robert Paisola<span style="font-weight: bold;">Rick Koerber the CEO of Many Utah Based Companies including Franklin Squires, Founders Capital, and other companies.</span><br /><br />This is a three part Video Series Recorded Live on Sunday June 7, 2009<br /><br />Please send all comments to comments@franklinsquireslawsuit.com<br /><br /><span style="font-weight: bold;">Part 1 of 3 Rick Koerber , CEO of Franklin Squires Goes Live on CBS Television, by Robert Paisola</span><br /><br /><object height="364" width="445"><param name="movie" value="http://www.youtube-nocookie.com/v/CM_NlweZqno&hl=en&fs=1&color1=0x5d1719&color2=0xcd311b&border=1"><param name="allowFullScreen" value="true"><param name="allowscriptaccess" value="always"><embed src="http://www.youtube-nocookie.com/v/CM_NlweZqno&hl=en&fs=1&color1=0x5d1719&color2=0xcd311b&border=1" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" height="364" width="445"></embed></object><br /><br /><br />For the full Interview, Please visit KUTV at<br /><br /><a href="http://www.kutv.com/mediacenter/local.aspx?videoId=89564@kutv.dayport.com&navCatId=1841">http://www.kutv.com/mediacenter/local.aspx?videoId=89564@kutv.dayport.com&navCatId=1841</a><br /><br />To our readers around the world.<br />The above video was aired on CBS and was aired live with Mr. Rick Koerber of Feanklin Squires and Founders Capital. We want you to know that we are receiving your letters and calls regarding this case. We applaud Mr. Koerber and the fair reporting of KUTV on this matter.<br /><br />We will keep you posted as issues develop.<br /><br />To your success<br /><br />Robert Paisola<br />CEO and Chairman<br />Western Capital Multimedia Inc.<br /><a href="http://www.blogger.com/www.RobertPaisola.com%20">www.RobertPaisola.com </a>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com4tag:blogger.com,1999:blog-433321465681915004.post-91699401112176529602009-05-29T12:02:00.001-06:002009-05-29T12:07:51.745-06:00Rick Koerber Press Conference - 3:00 PM MST -Grand America Hotel, UtahPRESS RELEASE<br /><br /> <br /><br /><span style="font-weight:bold;">RICK KOERBER RESPONDS TO FEDERAL INDICTMENT, ANNOUNCES A MULTI-PARTY FEDERAL CIVIL RIGHTS LAWSUIT, AND RELEASES TRANSCRIPTS AND RECORDINGS OF STATE OFFICIALS ENGAGING IN CRIMINAL VIOLATIONS OF UTAH LAW AND OF THE STATE’S CHIEF INVESTIGATOR CLEARING HIM OF ANY WRONGDOING</span><br /><br /> <br /> <br /> <span style="font-weight:bold;">S</span><span style="font-weight:bold;">ALT LAKE CITY —The following statement was delivered by FranklinSquires President & CEO Rick Koerber at a press conference held at the Grand America in downtown Salt Lake City, UT at 3:00pm on Friday May 29, 2009—</span>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-433321465681915004.post-1555510696241472422009-05-28T03:21:00.005-06:002009-05-28T05:35:29.754-06:00Hey Rob, this is Rick Koerber, I know it is late, but can we meet? Robert Paisola Reports Live from SLC Utah USA<a href="http://www.mycollector.com/koerberpressconference.mp3">LISTEN TO THE FULL AND UNEDITED PRESS CONFERENCE ANNOUNCING THE INDICTMENT OF RICK KOERBER of FRANKLIN SQUIRES and FOUNDERS CAPITAL WITHOUT ANY TYPE OF EDITING. THE CONFERENCE STARTS AT 2 MINUTES INTO THE RECORDING</a><br /><br /><a href="http://www.youtube.com/watch?v=IhO33Z1RB7A">Watch the Video That Rick Koerber wanted me to see that put everything that is happening into perspective. I simply stared in awe as I saw this!</a><br /><br />In the years that I have been involved in the world of journalism, I have seen so many stories come and go. Most have a very short life in the memory of the Average American and sometimes, just sometimes, there is a story that not only captures the minds of the people in the State you live in, but the International Press.<br /><br />Tonight at 11:22 PM, I received a call from Rick Koerber,the CEO and Chairman of Franklin Squires, Founders Capital and many other companies, who, as we reported on this site, has been indicted by a Grand Jury in Utah.<br /><br />He wanted to meet TONIGHT!<br /><br />Many people outside of the State of Utah do not know where to look for data on this case, so we are going to now post the official US Attorney Press Release that was submitted to the media yesterday, when the indictment was announced, as we have reported. Again, this is the press release that was issued to Western Capital Multimedia, as well as all other news outlets. Do not get bored, because there is much to follow!<br /><br /><span style="font-weight: bold;">For Immediate Release<br />May 26, 2009 United States Attorney's Office<br />District of Utah<br />Contact: (801) 524-5682<br /></span><br />Indictment Charges Koerber with Mail, Wire Fraud and Tax Evasion in Connection with Real Estate Investment Scheme<br />Investment Scheme Took in About $100 Million in Investor Funds; More than $50 Million Used to Make Ponzi Payments While Other Investor Money Was Diverted to Other Uses<br /><br />SALT LAKE CITY—A federal grand jury returned a three-count indictment Tuesday morning charging Claud R. Koerber aka Rick Koerber, age 36, of Alpine, with mail fraud, wire fraud, and tax evasion in connection with an alleged fraudulent investment scheme he devised to get money from investors. Koerber was involved with several businesses in Utah, including Founders Capital, Franklin Squires Investments, and Franklin Squires Companies, during the course of the scheme which the indictment alleges operated from sometime in 2004 to about Dec. 31, 2008.<br /><br />The indictment alleges that in 2004, Koerber created and presented a series of seminars designed to encourage individuals to make money through a real estate program that he named the “Equity Mill.” The indictment alleges Koerber accepted money from individuals and companies through Founders Capital by means of representations that Founders Capital would use the money to make “hard money” or bridge loans to other entities associated with Founders Capital.<br /><br />The indictment alleges Koerber used seminars, phone calls, mailings, radio programs, web sites and advertisements to communicate with investors and potential investors.<br /><br />According to the indictment, Koerber represented to investors and potential investors that substantial amounts of money could be made through the “Equity Mill.” Koerber, according to the indictment, paid varying amounts of interest on the money provided to Founders Capital, but generally paid 5 percent per month to its first line investors.<br /><br />Koerber, as a part of his seminars, encouraged first line investors “to act and think like a bank,” according to the indictment, by obtaining money from other people to place with Founders Capital. It was suggested that first line investors could pay 3 percent per month to second line investors, and in turn, second line investors, also thought to think and act like a bank, could pay 1 percent per month to third line investors.<br /><br />Koerber represented to investors that Founders Capital provided an opportunity for families to loan their funds directly to Founders Capital in exchange for an aggressive interest payment and a high degree of liquidity. Founders Capital would then re-loan the money to parties that met Founders Capital’s lending criteria, Koerber said. The indictment alleges Koerber represented to investors and potential investors that the funds loaned to Founders Capital were secured by real property of greater or substantially similar value. The indictment alleges the money invested through the program would be used as “short term” financing to acquire and improve real property investments prior to obtaining more permanent cost effective financing.<br /><br />The indictment alleges that Koerber told investors that when individuals or families make loans to Founders Capital, typical interest rates on the loaned funds would range between 1 and 10 percent a month, and that typical levels or security or collateralization ranged between 50 and 150 percent.<br /><br />In fact, the indictment alleges, Koerber knew that those representations were false, or that Koerber made them false by using some of the money for purposes other than real estate bridge loans and to purchase real property. Furthermore, the indictment alleges, most of the money placed with Founders Capital was not secured or collateralized by real estate, and was diverted by Koerber for other purposes.<br /><br />The indictment alleges Koerber used investor funds for personal housing, expensive automobiles, investments into restaurants, and investments into other businesses. For example, Koerber spent $850,000 on restaurants, loaned $800,000 to an associate for a restaurant, and spent more than $1 million on expensive automobiles. In addition, the indictment alleges, Koerber spent more than $5 million on making movies.<br /><br />Koerber operated Founders Capital and other related entities as a ponzi scheme to convince earlier investors that their funds were earning money and to convince potential investors that the program was working and earning money. The ponzi payments created the false impression that the businesses were profitable, investments were safe, and interest was being paid.<br /><br />At no time during the operation of the scheme, according to the indictment, did the Founders Capital or Franklin Squires entities operated by Koerber as a part of his Equity Mill scheme make a profit. Koeber obtained approximately $100 million in investor funds and over $50 million of those investor funds were used to make ponzi payments.<br /><br />The number of victims involved in the alleged fraud scheme has not been determined, although it could be in the hundreds. Determining the number of victims is difficult because of the different tiers of investors involved. Authorities believe most victims live in Utah.<br /><br />Count one of the indictment, mail fraud, charges Koerber with using the mail to send a letter addressed “To Our Lenders” which contained many of the false and fraudulent representations of the scheme. The potential penalty for one count of mail fraud is up to 20 years in federal prison and a fine of $250,000.<br /><br />Count two of the indictment charges Koerber with transferring $1 million of investor money to a Founders Capital account. The potential penalty for wire fraud is up to 20 years in federal prison and a fine of $250,000.<br /><br />Count three of the indictment, tax evasion, alleges Koerber had a taxable income of $900,000 for 2005 and owed federal tax in excess of $250,000 but failed to file an income tax return for the year. The indictment alleges Koerber caused various business entities under his control to pay personal expenses on his behalf. The potential maximum penalty for the tax count is up to five years and a fine of $250,000.<br /><br />Defendants charged in indictments are presumed innocent unless or until proven guilty in court.<br />A summons will be issued to Koerber to appear for an initial appearance in federal court. The investigation, which is being conducted by the FBI, the IRS, and the Utah Department of Securities is continuing.<br /><br />--- END OF PRESS RELEASE---<br /><br />Now, back to tonight's call, Rick requested that we meet tonight starting at 11:00 PM, to "meet and have a discussion" This was great news to me, because Rick knows that I have been dealing with the Worldwide Media because of his case for the past two days non stop.<br /><br />I jumped in my car, and headed over to Rick Koerber's home, and entered into what he referred to as the "Capitalist Bunker" . Rick had literally recreated the White House in his basement, complete with paintings, art, statues, leather couches and what I can only explain as a NASA looking computer system. <br /><br />I was impressed.<br /><br />"Rob, I want to personally thank you for all that you have done. I replied, that there was no reason to thank me, because all that I was doing was taking his case to the American and International Arena. And I TRULY BELIEVED IN THE Free Capitalist Cause, just like all of the dignitaries that we will be posting now and in the future.<br /><br />"You know, a lot of reporters have called me since the announcement and almost every single one of them ask me the same question, <span style="font-weight:bold;">"What did you say to Robert Paisola to make him change sides and to become so vocal about his support for you"</span> they would ask, and he would simply say, <span style="font-weight:bold;">"Why dont you call Robert Paisola and ask him yourself"</span><br /><br />Well the answer is simple, he did nothing. We have talked for the past year and I documented and reviewed data for hundreds of hours. We (Myself and My Colleagues) came to the conclusion that the entire basis for the rumors of wrongdoing by Rick Koerber, could not be true, even from a mathematical standpoint, let alone the timeline, it just did not add up. We even had outside forensic accountants look at the raw data and former IRS officials review the details and they said the same thing! So, what in the hell was he being indicted for anyway?<br /><br />We can not go into the exact details of the conversation, but I can tell you that the information that I was presented and given blew me away. Now I knew that I was on the right track. Thank god I decided to meet at this late hour with Rick Koerber.<br /><br />"Rob, your coverage of this has caused this to become a worldwide matter" and I have been receiving calls from all over the world because of what you are saying. Nobody seems to want to believe that you and I see eye to eye, and People are asking me more about your coverage of this, than the case"<br /><br />"I Smiled"<br /><br />I know that Rick Koerber has some serious heavyweight champions on his legal team. And I also know that they have nothing to do with the political machine in Utah. For these are all former Federal Prosecutors, who now represent Mr. Koerber. I also saw the documents and listen to the inquiries of the many Utah Attorneys who now want to jump on the bandwagon because they now see that this is an International Case.<br /> <br />But the fact remains that we have spent over two years investigating this case, and our conclusion is very simple. The facts do not add up.<br /><br />I pointed out that I was reading his website and that he was not saying anything at all about the case. He concurred and stated that he could not talk about the case and what he did say was confidential. But nothing was said. I also pointed out that I believe that the media coverage that has happened so far was somewhat fair, but I was absolutely positive that KUTV in Utah and Bryan, its anchor, were people that I trusted. He concurred and we discussed the fact that we previously had both agreed that it would be ok for Rick to meet with Fields Moseley of KUTV, as I had a strong belief in the fairness of the reporting of ABC and KUTV and I had personally met with the News Director on another matter last month. <br /><br />So yesterday, Rick Koerber met with Fields Moseley and did a story for ABC News.<br /><br />Here is the story:<br /><br /><iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.blogger.com/video.g?token=AD6v5dyUV0rEGGa-7Yg_ZlOLsx43zMeQp_kprVTAWU8FcPHCeDjicvhEkcLIZrqfo0anQcU3LWkaGHxik6OvD0R_0A' class='b-hbp-video b-uploaded' frameborder='0'></iframe><br /><br />"But Rick, why did you want to meet tonight? Because I want to hear the full unedited copy of the press conference that you recorded. "No problem, I will be right over"<br /><br />We loaded the audio from the press conference that is now live at the top of this page. Rick listened in absolute disbelief. He said he had a video that he wanted me to see; a video that put this whole Federal Indictment into perspective. We watched the video ( Listed above) and I sat in awe, thinking, is this what our country has come to?<br /><br />We met for three hours and agreed to meet tomorrow for another exclusive interview.<br /><br />He discussed many issues and provided much insight into the past 48 hours into his life, but he was confident, upbeat, absolutely centered and clear on his mission to the American Public. I was sad that I could not say more, but hey, I can say whatever I want, I do not have to report to a board of directors. I own the company! That is why I created Western Capital Multimedia to begin with! If you have not seen the site, it is great, and we are very pleased. It is at <a href="http://www.WCMTalent.com">www.WCMTalent.com</a> <br /><br />It is a passion and I love the media business, so why not own a piece of the pie! 3 magazines and a movie, and a TV Show in syndication is a great start. But this type of International Reporting makes every dime spent on studios, lighting, HD Cameras, and infrastructure worth it all. We have access like never before, all around the world. And that is what will make this case against Rick Koerber be seen around the world.<br /><br />It was one meeting that I am glad that I chose to attend, regardless of the time of day.<br /><br />I can PROMISE you that there is MUCH MUCH more to come. We will carefully be releasing data, recordings, writings, political statements, videos and much more, as the Attorneys allow this to go public. If you are a member of the press, a victim or someone who is watching this case, Watch us on Twitter and Facebook, because we do not have office hours and we will do WHATEVER IT TAKES TO GET YOU THE STORY! Even at 5:23 AM in the morning.<br /><br />To Your Success<br /><br />Robert Paisola<br />CEO and President<br />The Western Capital Group of Companies<br /><a href="http://www.RobertPaisolaInnocenceProject.com">The Robert Paisola Innocence Project</a><br /><a href="http://www.RobertPaisola.com">www.RobertPaisola.com</a><br /><a href="www.FranklinSquiresLawsuit.com ">www.FranklinSquiresLawsuit.com </a><br /><br /><a href="http://www.twitter.com/RobertPaisola.com">TWITTER</a><br /><a href="http://www.facebook.com/WesternCapital">FACEBOOK</a>RobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0tag:blogger.com,1999:blog-433321465681915004.post-44156634359443149722009-05-27T16:57:00.003-06:002009-05-27T17:31:00.330-06:00Robert Paisola Responds: The Franklin Squires and Rick Koerber Indictment<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhewumbcHrcu2xHN89XRjUGXgLUKz2HV757cyNPV6PiNkJEfI6DGpjkfhxu274wsCwcNLzNWAC-E66O5GSjc7BGLi4GukIoJTTMHgbqC9sTZFLGwmX58B7JxXesA7QIjmur3HrgS5YbUiU/s1600-h/n33958443025_1013018_6781.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 400px; height: 300px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhewumbcHrcu2xHN89XRjUGXgLUKz2HV757cyNPV6PiNkJEfI6DGpjkfhxu274wsCwcNLzNWAC-E66O5GSjc7BGLi4GukIoJTTMHgbqC9sTZFLGwmX58B7JxXesA7QIjmur3HrgS5YbUiU/s400/n33958443025_1013018_6781.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5340650245139431522" /></a><br />To our friends around the world:<br /><br />Thank you for taking the time to read this blog and to present your feedback on what you read and have read now and in the past.<br /><br />It is essential that we are very clear that we are not privy to any special information that has not been presented to the public. We are simply using this forum as a place to keep you, the American Public, informed.<br /><br />One of the biggest obstacles that we are coming across is the fact that so many people are contacting our office who are being viewed as victims of the Franklin Squires Machine.<br /><br />You need to understand that because there was an official indictment filed against Rick Koerber yesterday in Federal Court, there is absolutely no way for Western Capital to assist you with any claims you may or may not have against the company, Mr. Koerber or any of his associated.<br /><br />There are many people that have this belief that we have a magic wand that we can waive to solve their personal problems. As of this point, that is not possible.<br /><br />Yesterday, the US Attorney for the State of Utah, advised us that the investigation was considered "Ongoing" and that anyone that had additional information should contact their office.<br /><br />This is what we would ask you to do.<br /><br />We will continue to bring you live coverage of not only events surrounding the case, but our personal feelings as well, just as you witnessed yesterday in our article that discussed our personal feelings on Mr. Koerber.<br /><br />Again, these should in no way be considered facts, as because we are not trial counsel, we can not begin to predict what will happen in the future.<br /><br />One good thing is that Rick Koerber now has the ability to defend himself against comments and charges that have been alleged against him and his companies over the past few years. One of the negative sides, is that one of the most important concerns that Attorneys have when they deal with a very high profile case like this is HOW THEY WILL TRY THE CASE. The strategy that will be used is something that not only the American Public, but the national media, must present to Counsel for the Defendant.<br /><br />The bottom line is that there are many questions regarding this case that remain unanswered. It is highly probable that many of your questions will remain unanswered until the Government or Trial Counsel determines the proper time and place to discuss those matters.<br /><br />One thing that we can tell you is that there are many people who have contacted us and have gone into great detail about their losses. Many people believe that just because they have never been contacted, that they will not be considered victims of this issue.<br /><br />We DO NOT have access to the courts. We can not predict the future, and because of ethical issues, it is impossible for us to assist you in any way "to get your money back"<br /><br />As many of you know, we have been bombarded by media from around the world. Because of the extreme demand from the media and the world time zone issues, as well as because of our history with this case, we are only working with national media. That is not to say that we can not work local media into our schedule, it is just a simple process of reaching the most amount of people possible. That is why we choose to appear on NPR National vs. a local NPR Affiliate. That is why you will see us on the BBC National Channels as opposed to the daily newspapers in Europe.<br /><br />Again, please call 801-619-4700 and be specific on your needs. Let us know what you want and when your deadline is. We do not want to be on National Television in Africa at 3:00 AM, but if that is what works, please let us know.<br /><br />Finally if there are questions that can not be answered, please understand that we will simply tell you that we can not discuss that matter. <br /><br />I wish the National Media, the Victims, the Prosecution Team and the Defense Team nothing but the best. But please understand that we are NOT going live on CNN to debate this matter with the United States Attorney. That is not only wrong, but extremely improper.<br /><br />Likewise, we can not show up at a victims home with cameras rolling and have the victims of this indictment throw questions at us without notice. The issue is that there are many people who have lost a lot. We are extremely sensative about the HUMAN NATURE of this story. Our commentary yesterday should be merely viewed as a personal analysis of how we view Mr. Koerber. We are not the judge, We are not the jury, and we can not deliver any information other than what we post here, on Facebook and on Twitter.<br /><br />We appreciate your interest, but we ask you to please understand our position.<br /><br />To your success,<br /><br />Robert Paisola<br />CEO and President<br />The Western Capital Group of Companies<br />www.RobertPaisola<br />www.Twitter.com/RobertPaisola<br />www.Facebook.com/WesternCapitalRobertPaisola.comhttp://www.blogger.com/profile/09341314931135343411noreply@blogger.com0