Rick Koerber accused in Ponzi scheme

From The Salt Lake Tribune, “Rick Koerber’s businesses owned $127 million worth of properties when they collapsed amid plunging values during the real estate crash nearly 10 years ago, his attorney told a federal court jury on Tuesday.

Koerber, the one-time Utah County real estate investment guru, is facing 18 charges related to allegations he ran a giant scam from 2005 to 2007 as his businesses took in about $100 million and he used about half of that to pay interest owned to investors to make the enterprise appear profitable.

Investors were promised returns of up to 5 percent a month and told their funds were safe because they would be used to make short-term loans to companies controlled by Koerber to buy real estate.

Instead, Murray said, Koerber’s businesses were not profitable and Koerber used investor funds to make interest payments.”

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