Claud Roderick "Rick" Koerber is a Utah criminal convicted on charges of orchestrating and running a $100 million Ponzi scheme, one of the largest in Utah's history. Koerber took in $100 million from 2004 to 2008 by promising his victims returns of 24% to 60% annually, but spent $50 million on Ponzi payments to prior investors, as well as luxury cars and other luxury items, all to give his businesses the false appearance of profitability. Koerber attracted investors with long seminars that combined his views on capitalism with his religious philosophies. He was reported to cite his relationship with Hartman Rector Jr., an emeritus general authority of The Church of Jesus Christ of Latter-day Saints, and to have promised exorbitantly high profits for investors. By connecting his promises of unrealistic investment returns with the commonly shared religious and political views of his local victims, Koerber was using a tactic for building trust with potential victims known as "affinity fraud". Koerber was sentenced to 170 months in federal prison and restitution of $45 million dollars.
Biography
At arraignment in June 2009, Koerber pleaded not guilty to all charges against him, and a trial was set for September 11, 2012. In November 2009, U.S. Federal prosecutors filed 19 additional charges of fraud against Koerber, including 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, bringing the total of charges filed to 22. During evidentiary hearings a key piece of evidence was thrown out resulting in one charge being dropped because it was based on a draft of a letter to key investors and there was no evidence it was sent. On March 28, 2014, a federal judge set a new trial date to try the remaining 18 charges, however Judge Clark Waddoups dismissed the case on June 19, 2014 due to the government violating Koerber's right to a speedy trial. The case was dismissed 5 years to the day after Koerber's arraignment. The case was dismissed with prejudice. In December 2014 prosecutors said they were willing to appeal the verdict. Prosecutors appealed to the 10th Circuit Court of Appeal in Denver, Colorado. On January 21, 2016, the court found that Waddoups failed to consider the seriousness of the charges and Koerber's contributions in delaying the trial. The case was sent back to the lower court and Waddoups recused himself from reviewing it. On August 25, 2016, federal judge Jill Parrish ruled that the charges could be reinstated. Koerber was again indicted by a grand jury on January 18, 2017, on 18 charges, however, the jury deadlocked and a mistrial was declared on October 16, 2017. On November 1, 2017, the United States Attorney's Office announced plans to retry the case. Filmmaker Richard Dutcher testified about Koerber's $5 million funding of the 2009 erotic horror film Evil Angel while several of Koeber's investors testified they did not know or approve of their money to bankroll a film, which prosecutors characterized as characteristic of Koerber's dishonest practices. On September 20, 2018, a federal jury in the District of Utah convicted Claud R. Koerber on charges of Fraud in the Offer or Sale of Securities, Wire Fraud, and Money Laundering. On October 15, 2019, Judge Frederic Block sentenced Koerber to 170 months in federal prison and restitution of $45 million dollars.
Criminal conviction
"Jury of eight men and four women found Koerber guilty of 15 counts of securities fraud, wire fraud and money laundering. They found him not guilty on two counts of tax evasion." Koerber was sentenced to 170 months in federal prison and restitution of $45 million dollars.
