Post by privateinvestors on Aug 29, 2013 22:57:36 GMT 4
Businessman linked to Byron Center men, alleged $46.5 million Ponzi scheme is sentenced
By John Agar - August 27, 2013 - www.mlive.com
GRAND RAPIDS, MI – A businessman linked to an alleged $46.5 million Ponzi scheme has been sentenced to one year, one day in federal prison for filing a false tax return.
As part of a plea agreement, John Bertuca will testify against Byron Center residents David Wilson McQueen and Trend Edward Francke and others tied to the case.
He also will serve one year on supervised release and pay $115,000 in restitution.
Bertuca of Coloma, considered by some to be a “pillar of the community” and actively involved in charitable causes, has a history of underreporting his income, the government said. But that didn't draw law-enforcement attention.
“Instead, (Bertuca) was questioned in connection with the Ponzi scheme orchestrated by David W. McQueen and Trent E. Francke… . Although (Bertuca) was not aware of the full nature and extent of Messrs. McQueen and Francke’s scheme, he dealt closely with them,” Assistant U.S. Attorney Matthew Borgula wrote in court papers.
He said Bertuca provided details about investments they offered investors, and attended pitch meetings where McQueen, Francke and others “made material misrepresentations to investors to induce them to invest,” Borgula wrote.
He said Bertuca also offered advice to hide assets.
“For example, on June 16, 2008, Mr. McQueen approached (Bertuca) complaining that he was taking in too much money and needed a way to reduce his reportable income,” Borgula wrote.
He said Bertuca suggested that McQueen pay him $345,000 for ‘marketing’ expenses to offset his income. McQueen gave Bertuca the money, they provided a list of expenses for Bertuca to pay, including payoff on a $48,451 boat loan, and several properties.
Borgula wrote: “McQueen’s income was derived from money that McQueen had obtained from investors through his Ponzi scheme."
The IRS also investigated allegations involving another defendant linked to the case.
Last week, Penny Hodge, of Sedona, Ariz., pleaded guilty to structuring a transaction to avoid a bank having to report a currency transaction of $10,000, and failure to file a tax return.
She, too, has agreed to provide information against the McQueen and Francke.
John Agar covers crime for MLive/Grand Rapids Press E-mail John Agar: jagar@mlive.com
By John Agar - August 27, 2013 - www.mlive.com
GRAND RAPIDS, MI – A businessman linked to an alleged $46.5 million Ponzi scheme has been sentenced to one year, one day in federal prison for filing a false tax return.
As part of a plea agreement, John Bertuca will testify against Byron Center residents David Wilson McQueen and Trend Edward Francke and others tied to the case.
He also will serve one year on supervised release and pay $115,000 in restitution.
Bertuca of Coloma, considered by some to be a “pillar of the community” and actively involved in charitable causes, has a history of underreporting his income, the government said. But that didn't draw law-enforcement attention.
“Instead, (Bertuca) was questioned in connection with the Ponzi scheme orchestrated by David W. McQueen and Trent E. Francke… . Although (Bertuca) was not aware of the full nature and extent of Messrs. McQueen and Francke’s scheme, he dealt closely with them,” Assistant U.S. Attorney Matthew Borgula wrote in court papers.
He said Bertuca provided details about investments they offered investors, and attended pitch meetings where McQueen, Francke and others “made material misrepresentations to investors to induce them to invest,” Borgula wrote.
He said Bertuca also offered advice to hide assets.
“For example, on June 16, 2008, Mr. McQueen approached (Bertuca) complaining that he was taking in too much money and needed a way to reduce his reportable income,” Borgula wrote.
He said Bertuca suggested that McQueen pay him $345,000 for ‘marketing’ expenses to offset his income. McQueen gave Bertuca the money, they provided a list of expenses for Bertuca to pay, including payoff on a $48,451 boat loan, and several properties.
Borgula wrote: “McQueen’s income was derived from money that McQueen had obtained from investors through his Ponzi scheme."
The IRS also investigated allegations involving another defendant linked to the case.
Last week, Penny Hodge, of Sedona, Ariz., pleaded guilty to structuring a transaction to avoid a bank having to report a currency transaction of $10,000, and failure to file a tax return.
She, too, has agreed to provide information against the McQueen and Francke.
John Agar covers crime for MLive/Grand Rapids Press E-mail John Agar: jagar@mlive.com