{{Short description|American convicted felon (born 1973)}} '''Claud Roderick "Rick" Koerber''' (born Claud Roderick Franklin 1973, Casper, WY) is an American who was found guilty in federal court of orchestrating and running a $100 million Ponzi scheme, one of the largest in Utah's history.<ref>{{Cite news|url=https://www.yahoo.com/news/man-known-free-capitalist-found-160933020.html|title=Man Known as 'The Free Capitalist' Found Guilty in $100 Million Ponzi Scheme|date=2018-09-21|work=Yahoo News|access-date=2018-09-22}}</ref><ref>{{Cite news|url=https://www.sltrib.com/news/2018/09/18/former-real-estate-guru/|title=Federal jury finds Rick Koerber guilty of 15 counts in massive Utah real estate fraud case|date=2018-09-20|work=Salt Lake Tribune|access-date=2018-09-22}}</ref><ref>{{Cite news|url=https://www.heraldextra.com/news/local/crime-and-courts/former-utah-county-real-estate-investor-found-guilty-in-fraud/article_a63b4dbc-3601-5f36-95b9-0ce0e345d8d4.html|title=Former Utah County real estate investor found guilty in fraud scheme|date=2018-09-21|work=Daily Herald|access-date=2018-09-22}}</ref><ref>{{Cite news|url=https://fox13now.com/2018/09/20/jury-finds-free-capitalist-rick-koerber-guilty-in-one-of-utahs-biggest-fraud-cases/|title=Jury finds 'Free Capitalist' Rick Koerber Guilty in One of Utah's Biggest Fraud Cases|date=2018-09-20|work=Fox13.com|access-date=2018-09-22|publisher=Fox 13, Salt Lake City}}</ref> 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, and also bought luxury items to give his scheme an appearance of profitability.<ref>{{Cite news|url=https://www.sltrib.com/news/business/2017/08/10/judges-wont-delay-fraud-trial-of-ex-real-estate-investment-guru-rick-koerber/|title=Judges won't delay fraud trial of ex-real estate investment guru Rick Koerber|date=2017-08-10|work=The Salt Lake Tribune}}</ref>
In 2019, Koerber was sentenced to 170 months (14 years, 2 months) in federal prison<ref name=":0">{{Cite web|url=https://www.ksl.com/article/46656346/convicted-fraudster-rick-koerber-sentenced-to-14-years-in-prison-amid-protests|title=Convicted fraudster Rick Koerber sentenced to 14 years in prison, amid protests|website=www.ksl.com|language=en|access-date=2019-10-18}}</ref><ref name=":1">{{Cite web|url=https://www.sltrib.com/news/2019/10/15/real-estate-fraudster/|title=Real estate fraudster Rick Koerber gets 14 years in prison during raucous hearing on his Ponzi scheme|website=The Salt Lake Tribune|language=en-US|access-date=2019-10-18}}</ref> and restitution of $45 million.<ref name=":2">{{Cite web|url=https://www.courtlistener.com/docket/4615109/640/united-states-v-koerber/|title=#640 in United States v. Koerber (D. Utah, 2:17-cr-00037) – CourtListener.com|website=CourtListener|language=en-us|access-date=2019-10-18}}</ref>
==Biography== In the 1990s, Koerber operated a company called National Business Solutions in his hometown of Casper, Wyoming. He "admitted to violating Wyoming securities laws in 2000", and declared bankruptcy in 2001 then relocated to Utah.<ref>Tom Morton (2009-05-29). [https://trib.com/news/local/feds-man-ran-ponzi-scheme/article_23a30b16-f2ae-522e-b70c-cb61509e6c8f.html Former Casperite allegedly led $100 million con in Utah] Casper Star-Tribune, accessed 2021-04-08</ref> His base of operations was Alpine, Utah.<ref>Emily Morton (2010-01-27). [https://www.deseret.com/2010/1/27/20367045/alpine-businessman-claud-rick-koerber-carries-on-despite-ponzi-scheme-charges Alpine businessman Claud 'Rick' Koerber carries on despite Ponzi scheme charges]. The Deseret News, accessed 2021-04-07</ref>
Koerber attracted investors with long seminars that combined his views on capitalism with his religious philosophies. Starting in 2005 Koerber expounded his views on the "Free Capitalist" radio show, from a Salt Lake City AM talk radio station.<ref>{{cite web |url=https://www.freecapitalist.com/ |title=Home |website=freecapitalist.com}}</ref> Koerber's scheme was built around his concept of "equity mill": he used a series of shell companies to buy and sell residential properties to and from would-be investors.<ref name=Harvey2017-09-23>Tom Harvey (Sep. 23, 2017). [https://www.sltrib.com/news/business/2017/09/23/koerber-insists-100-million-he-took-in-for-his-equity-millwas-backed-by-real-estate/ Koerber insists $100 million he took in for his ‘Equity Mill’was backed by real estate]. The Salt Lake Tribune, accessed 2021-04-2021</ref> 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), who was reportedly in attendance for at least one of Koerber's presentations to would-be investors.<ref>{{Cite news|url=https://www.cityweekly.net/utah/house-of-cards/Content?oid=2133374|title=House of Cards? Anxious investors fear "Free Capitalist" Rick Koerber's real estate investment empire is folding|last=Peterson|first=Eric|date=2008-03-05|work=Salt Lake City Weekly}}</ref><ref name="Peterson">{{Cite news|url=https://www.cityweekly.net/utah/free-capitalist-rick-koerber/Content?oid=2140782|title=Friends in High Places: Indicted businessman Rick Koerber counted a former LDS General Authority as an investor-and let everyone know it|last=Peterson|first=Eric|date=2009-09-30|work=Salt Lake City Weekly}}</ref> 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".<ref name="Peterson"/> Koerber's scheme was exposed during the 2007–2008 collapse of the United States housing bubble when residential property values dropped sharply, in conjunction with a broader economic crisis, and he was unable to make promised payments to investors.<ref name=Harvey2017-09-23/>
At arraignment in June 2009, Koerber pleaded not guilty to all charges, and a trial was set for September 11, 2012.<ref>{{Cite news|url=http://www.deseretnews.com/article/705311623/Man-pleads-not-guilty-in-Ponzi-case.html|archive-url=https://web.archive.org/web/20090713155642/http://www.deseretnews.com/article/705311623/Man-pleads-not-guilty-in-Ponzi-case.html|url-status=dead|archive-date=July 13, 2009|title=Man pleads not guilty in $100M Ponzi scheme|publisher=Deseret News|date=2009-06-20|access-date=2009-10-22}}</ref> 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.<ref>{{Cite news|url=http://www.sltrib.com/ci_13757418|title=19 new charges filed in alleged megafraud|publisher=Salt Lake Tribune|date=2009-11-11|access-date=2009-11-24}}</ref>
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.<ref>{{Cite news|url=https://www.sltrib.com/sltrib/money/56760327-79/koerber-evidence-judge-prosecutors.html.csp|title=Utah judge tosses evidence in Koerber alleged 'Ponzi' case|publisher=The Salt Lake Tribune|date=2013-08-21|access-date=2014-04-16}}</ref>
On March 28, 2014, a federal judge set a new trial date to try the remaining 18 charges,<ref>{{Cite news|url=https://www.sltrib.com/sltrib/news/57745307-78/koerber-estate-real-trial.html.csp|title=Man accused of operating Ponzi scheme gets trial date|publisher=The Salt Lake Tribune|date=2014-03-28|access-date=2014-04-16}}</ref> 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.<ref>{{Cite news|url=https://www.sltrib.com/sltrib/news/58088867-78/koerber-case-waddoups-prosecutors.html.csp|title=Giant Utah fraud case will be dismissed|publisher=The Salt Lake Tribune|date=2014-06-19|access-date=2014-06-20}}</ref> The case was dismissed with prejudice.<ref>{{Cite web|url=https://www.sltrib.com/csp/mediapool/sites/qanews/news/1465245-155/koerber-case-attorney-federal-prosecutors-utah.csp|title = How Rick Koerber beat federal charges alleging a Ponzi scheme}}</ref> In December 2014 prosecutors said they were willing to appeal the verdict.<ref>{{Cite web|url=https://www.sltrib.com/news/1913290-155/prosecutors-want-to-refile-utah-fraud|title = Prosecutors want to refile Utah fraud case against Rick Koerber}}</ref> 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.<ref name="Romboy">{{Cite news|url=http://www.deseretnews.com/article/865645920/Appeals-courts-sends-case-against-Rick-Koerber-back-to-judge-who-dismissed-it.html|archive-url=https://web.archive.org/web/20160124022111/http://www.deseretnews.com/article/865645920/Appeals-courts-sends-case-against-Rick-Koerber-back-to-judge-who-dismissed-it.html|url-status=dead|archive-date=January 24, 2016|title=Appeals courts sends case against Rick Koerber back to judge who dismissed it|last=Romboy|first=Dennis|date=2016-01-21|newspaper=DeseretNews.com|access-date=2017-02-10|language=en}}</ref> 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.<ref name="Romboy"/> Koerber was again indicted by a grand jury on January 18, 2017, on 18 charges,<ref>{{Cite news|url=https://www.sltrib.com/home/4836244-155/ex-utah-county-real-estate-guru-koerber|title=Utah's 'free capitalist' Koerber faces reindictment over Ponzi scheme|last=Tribune|first=Tom Harvey The Salt Lake|newspaper=The Salt Lake Tribune|access-date=2017-02-10|language=en-US}}</ref> however, the jury deadlocked and a mistrial was declared on October 16, 2017.<ref>{{Cite web|url=https://www.deseret.com/2017/10/16/20635179/jury-deadlocked-in-fraud-trial-for-utah-businessman-rick-koerber|title=Jury deadlocked in fraud trial for Utah businessman Rick Koerber|last=Romero|first=McKenzie|date=2017-10-16|website=Deseret News|language=en|access-date=2019-10-18}}</ref>
On November 1, 2017, the United States Attorney's Office (District of Utah) announced plans to retry the case.<ref>{{Cite web|url=https://www.justice.gov/usao-ut/pr/statement-us-v-koerber|title=Statement on U.S. v Koerber|date=2017-11-01|website=www.justice.gov|language=en|access-date=2019-10-18}}</ref> 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 typical of Koerber's dishonest practices.<ref name=Harvey2017>Tom Harvey (2017-09-12). [https://www.sltrib.com/news/business/2017/09/12/accused-real-estate-guru-invested-in-sexy-horror-flick-to-raise-funds-for-movie-on-mormon-church-founder-joseph-smith/ Accused real estate guru invested in sexy horror flick to raise funds for movie on Mormon church founder Joseph Smith] The Salt Lake Tribune, accessed 13 April 2020</ref> On September 20, 2018, a federal jury in the District of Utah convicted Koerber on charges of Fraud in the Offer or Sale of Securities, Wire Fraud, and Money Laundering.<ref>{{Cite web|url=https://www.justice.gov/usao-ut/us-v-koerber|title=US v. Koerber|date=2019-03-13|website=www.justice.gov|language=en|access-date=2019-10-18}}</ref> On October 15, 2019, Judge Frederic Block sentenced Koerber to 170 months (14 years, 2 months) in federal prison<ref name=":0" /><ref name=":1" /> and restitution of $45 million.<ref name=":2" />
== Criminal conviction == A 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.<ref>{{Cite news|url=https://fox13now.com/2018/09/20/jury-finds-free-capitalist-rick-koerber-guilty-in-one-of-utahs-biggest-fraud-cases/|title=Jury finds 'Free Capitalist' Rick Koerber guilty in one of Utah's biggest fraud cases|date=2018-09-21|work=fox13now.com|access-date=2018-09-21|language=en-US}}</ref>
==References== {{reflist}}
==External links== * [http://www.blogtalkradio.com/freecapitalist FreeCapitalist Radio with Rick Koerber] * [https://freecapitalist.com/ FreeCapitalist Project]
{{DEFAULTSORT:Koerber, Rick}} Category:Businesspeople from Utah Category:American radio personalities Category:Pyramid and Ponzi schemes Category:1973 births Category:Living people Category:People from Casper, Wyoming Category:Criminals from Utah Category:Latter Day Saints from Utah Category:Latter Day Saints from Wyoming