News updates are sent daily. You can unsubscribe at any time.
4 E.V. men convicted in $40M fraud case
Digg|
Save|
License|
Print|
E-mail|
Four East Valley men face up to 20 years in federal prison for their roles in a mail-fraud scam that bilked investors out of more than $40 million.
Richard Ross, 67, and Paul Woodcock, 60, both of Scottsdale, and James Bonebrake, 59, of Cave Creek, all former co-owners of Comprehensive Outpatient Rehabilitation Facilities, pleaded guilty to one federal count of mail fraud after a trial concluded in U.S. District Court on Monday.
Steven Goldfarb, 60, of Paradise Valley, also a co-owner of CORF, was found guilty on Monday of one federal count of conspiracy to commit mail fraud and three counts of mail fraud, the U.S. District Attorney's Office announced on Wednesday.
Others involved in the scheme either pleaded guilty to mail fraud or cooperated with the prosecution by testifying on behalf of the government, according to the U.S. District Attorney's Office.
Prosecutors alleged that the men grossly misrepresented the potential profits of newly opened health care facilities to investors. Through advertising in newspapers and magazines and hosting sales seminars at the Scottsdale Country Club, the group told investors the facilities could expect to net more than $1 million and profit $450,000 in their first year of business, according to the U.S. District Attorney's Office.
From 1999 to May 2003, the men sold 338 contracts to investors seeking to open outpatient rehabilitation facilities throughout the United States and collected more than $40 million in investment fees.
Goldfarb will be sentenced on Feb. 9, and the other co-defendants will be sentenced on other dates.
Please add your comments, but follow these guidelines to keep this a safe, credible place for discussing the news: