David Saks: FORMER CEO OF SUNWEST MANAGEMENT INDICTED ON FEDERAL FRAUD OFFENSES

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

FORMER CEO OF SUNWEST MANAGEMENT INDICTED ON FEDERAL FRAUD OFFENSES

John Harder, Former CEO of Sunwest Management, Indicted on Federal Fraud Offenses

U.S. Attorney’s Office September 21, 2012
  • District of Oregon (503) 727-1000
 

PORTLAND, OR—Jon Michael Harder, 47, a resident of Oregon and North Dakota, voluntarily surrendered to U.S. Marshals yesterday, after an arrest warrant had been issued on a 56-count indictment returned by a federal grand jury in Portland. The indictment charges Harder with defrauding more than 1,000 investors out of approximately $130 million during the period 2006 to 2008. He is scheduled to be arraigned in the District Court in Portland at 1:30 today.

The indictment alleges that Harder controlled a network of companies which bought, constructed, and managed a nationwide collection of assisted living facilities.

At its height, the corporate organization that Harder controlled, Sunwest Management and related companies, owned approximately 300 assisted living facilities, serving over 15,000 residents with an average age of 85.

“Investors should be able to rely on the honesty of the promises made to them when they decide to invest,” said U.S. Attorney Amanda Marshall.

“The allegations in this indictment describe a massive fraud affecting over 1,000 investors around the country. This office is determined to vigorously pursue financial fraud whenever it occurs.”

The alleged scheme to defraud was based on materially false promises made to investors, including that they would be investing money in specific assisted living facilities and that the Sunwest enterprise was a successful business.

However, the money that investors thought was going into specific facilities was commingled with money coming in from all investors and banks. It is alleged that at least as far back as 2006, Sunwest was losing millions of dollars.

Harder is accused of essentially running a Ponzi scheme, taking in millions of dollars from both investors and banks, supposedly to acquire new assisted living facilities.

In reality, the funds were used to pay guaranteed returns to earlier investors.

Harder laundered the proceeds of this fraud by diverting large amounts of money to support his lavish lifestyle.

“The FBI is committed to investigating alleged corporate fraud schemes and protecting the interests of investors and lenders,” said Greg Fowler, Special Agent in Charge of the FBI in Oregon.

“The U.S. Postal Inspection Service is committed to aggressively investigating anyone who knowingly utilizes the U.S. mail to intentionally defraud and deceive the American public,” said Brad Kleinknecht, Inspector in Charge of the Seattle Division.

“It can be devastating when the financial well-being of an individual falls into the wrong hands through trickery and deceit,” said Steven Bellis, the Acting IRS Special Agent in Charge of the Pacific Northwest. “The days of freedom could be numbered for those who allegedly peddle false hopes and dreams and prey on investors for their own financial benefit.”

As a result of this alleged conduct, Harder was charged with 25 counts of mail fraud, 11 counts of wire fraud, and 20 counts of money laundering. Each count of mail and wire fraud carries a potential sentence of 20 years in prison and/or a $250,000 fine. Each count of money laundering can result in a sentence of 10 years in prison and a fine of $250,000.

An indictment is only an allegation and not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in court.

This case was investigated by the United States Postal Inspection Service; Federal Bureau of Investigation; Internal Revenue Service, Criminal Investigation; and the United States Bankruptcy Trustee’s Office. The case is being prosecuted by Allan M. Garten, Senior Litigation Counsel and Assistant United States Attorney, District of Oregon.

United States Attorneys across the nation are launching an Investor Fraud Initiative and hosting regional Investor Fraud Summits during the first two weeks of October in Walnut Creek, California; Denver, Colorado; Nashville, Tennessee; Miami, Florida; Cleveland, Ohio; and Stanford, Connecticut. U.S. Attorney Amanda Marshall will be attending the Walnut Creek summit on October 9, 2012. The primary goal of the Investor Fraud Initiative is to raise public awareness about investor fraud by identifying the types of schemes and schemers prosecuted by the Justice Department, educating investors on ways to protect themselves from becoming victims of fraud and encouraging individuals to report suspicious activity.

source: FBI



David Saks



Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

 

Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.

 

 

 

 

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


 

  Real Estate Crimes

 

Click "HERE" For Today's Question

 

 

TheListen Now!

David Saks Show

Saturday Nite

9pm-12am Central

University of Memphis

WUMR

 

Support
America's Hobby

Click Elvis

Mr.Saks' participation in ActiveRain ended April 13, 2015.

His blog archives will remain online.

May God bless you.

Comment balloon 0 commentsDavid Saks • September 21 2012 12:40PM

Comments

This blog does not allow anonymous comments