Posts tagged: Greg Jeffreys
A recently filed U.S. Supreme Court opinion has federal prosecutors asking for about $2 million more in restitution from jailed Spokane developer Greg Jeffreys, who pleaded guilty last year to wire fraud in a series of real estate schemes.
Sentencing documents filed ahead of a scheduled hearing in June had originally asked Jeffreys - who admitted in November to duping individual investors and banks on projects including condominiums, units in the downtown Ridpath Tower and a military facility off Highway 2 - to pay back $10.3 million. But a decision rendered in Washington, D.C., earlier this month in the case of a convicted mortgage fraudster out of Wisconsin prompted prosecutors to revise that amount closer to $12 million.
The unanimous decision in Robers v. United States, decided in a lightning-fast (for the court) 10 weeks after oral argument, overturned restitution guidelines set forth by the Ninth Circuit Court of Appeals, according to prosecutors. While the Wisconsin court ruled Benjamin Robers, a man who bought two houses using fraudulent loan applications, must pay the difference between the amount the bank lent and how much the properties sold for after foreclosure, the Ninth Circuit had calculated restitution based on the value of forfeited properties at the time they were seized. The Supreme Court agreed to hear the case in February 2013 to settle the dispute in the way the two courts calculated restitution.
The decision affirming the Wisconsin court's practice increases the amount Jeffreys owes banks and investors on three properties that were foreclosed upon, prosecutors say in documents filed last week. This includes units in the downtown Ridpath tower.
Jeffreys' ex-wife, Kimberly Jeffreys, also pleaded guilty in February to a charge of fraud in dealings surrounding the military facility. She is tentatively scheduled to be sentenced in July for her role in the scheme, facing a potential six-month sentence and restitution of close to $160,000.
Shannon Stiltner, a woman who lived with Greg Jeffreys in Las Vegas and pleaded guilty in November to deliberately ignoring signs her boyfriend was swindling investors, is serving her seven-month sentence at a federal detention center in Seattle. Stiltner has been ordered to pay $58,000 in restitution and is scheduled for release in August.
Prosecutors have not filed requests to change Kimberly Jeffreys' or Shannon Stiltner's restitution amounts.
A judge has ordered the sentencing for married couple Greg and Kimberly Jeffreys, both of whom pleaded guilty to defrauding development investors in Spokane and elsewhere, pushed to the summer.
For Greg Jeffreys, the accused mastermind of schemes ranging from leasing property at inflated rices in the restored Ridpath Hotel downtown and bilking the federal government of funds in the construction of a military installation off Highway 2, it is the second continuance granted ahead of sentencing. Prosecutors want Jeffreys to serve eight years in prison and pay back millions in restitution from fraudulent schemes, but Jeffreys plans to fight that amount by calling a cavalcade of witnesses at his sentencing hearing.
That hearing will now tentatively take place in June, according to a court order signed last week.
Kimberly Jeffreys, who pleaded guilty in February to fraud charges stemming from the military installation construction, was granted her first sentencing continuance. A hearing scheduled for next month has been pushed to July, according to court records. For her involvement, prosecutors want Kimberly Jeffreys to spend six months in prison and pay restitution of up to $150,000.
A third conspirator, Shannon Stiltner, was sentenced in February to seven months of prison time and ordered to pay restitution to two investors totaling about $58,000.
The woman who lived with jailed Spokane developer Greg Jeffreys and was implicated in his schemes to defraud real estate investors was sentenced to seven months in prison last week after pleading guilty to concealing plots through ignorance and conspiracy.
Shannon Stiltner was also ordered to pay more than $58,000 in restitution to two defrauded investors by a federal judge at a sentencing hearing in U.S. District Court on Feb. 10. Jeffreys was originally slated to be sentenced last week as well, but that hearing was stayed as attorneys continue to stipulate the amount the former real estate developer owes, which may total in the millions.
In court documents asking U.S. District Court Judge Rosanna Malouf Peterson to accept the seven-month sentence, Stiltner said Jeffreys swept her off her feet after a failed marriage, guiding her drug-addicted daughter to sobriety.
“(Jeffreys') actions established a deep and powerful trust between him and Shannon,” Stiltner's attorney, John McEntire, wrote.
That trust kept her from questioning Jeffreys' business deals, even after news reports began to indicate something was wrong, McEntire said.
Stiltner's sentence ends one chapter of a legal saga that has been ongoing since Jeffreys' arrest more than a year ago. Jeffreys' wife, Kimberly, continues her legal fight with a trial tentatively scheduled for April. Greg Jeffreys sentencing, at which dozens of witnesses are expected to testify about his alleged debts, will take place in March.
The sentencing of jailed developer Greg Jeffreys, who pleaded guilty to fraud and contempt charges in November, will take a little longer than planned, in part to accommodate the dozens of witnesses the former Ridpath Hotel investor plans to call on his behalf.
A U.S. District Court judge this week delayed a hearing, expected to last at least two days, at which Jeffreys is expected to dispute the amount owed numerous debtors listed in court filings. Scheduled for February, the sentencing and a decision on how much Jeffreys owes in restitution will not come until later in March.
In his request for the continuance, Jeffreys and his attorney cite an extensive witness list - including bankers, assessors and family members - as part of the reason for the needed delay. In total, Jeffreys plans to call more than 30 people to testify about his debts and character. Some of those he plans to call were involved in leasing deals at the Ridpath, Spokane's historic hotel whose revitalization was impeded by Jeffreys' legal woes.
Jeffreys was indicted in January 2013 on multiple federal counts of bank and wire fraud, money laundering and theft tied to real estate dealings and developments that never materialized. Jeffreys and his wife, Kimberly, were implicated in a plot to steal federal government money when constructing a military entrance processing station off Highway 2. Employee Shannon Stiltner, who allegedly shared a casino suite with Jeffreys in Las Vegas, also pleaded guilty in November to concealing knowledge of a Ponzi scheme.
Stiltner's sentencing is still set for February.
Spokane developer Greg Jeffreys, who is jailed on federal charges alleging that he defrauded investors of millions of dollars, has asked a judge for a change of venue for his trial, arguing that local media “has saturated the Spokane area with prejudicial and inflammatory remarks.”
Citing primarily Spokesman-Review coverage, Jeffreys argued that half of the county’s potential jury pool had been tainted with information unrelated to the trial. The motion also cited the case against former Spokane Police Officer Karl Thompson, in which Thompson’s trial was moved to Yakima in 2011 after five years of “intense media coverage.” Thompson was found guilty of excessive use of force for his role in the death of Otto Zehm in 2006.
In a response to Jeffreys’ request, the government, through U.S. Attorney Michael Ormsby, said claims of a prejudiced jury pool were “wholly overstated” and asked the judge to reject the request.
U.S. District Judge Rosanna Peterson will hear the request on Sept. 10 at 10 a.m.
The judge will also hear a motion from Jeffreys to suppress evidence, including oral statements from Jeffreys, because they were a “direct result of an illegal search and seizure” of Jeffreys’ 10,000-square-foot home by 24 law enforcement agents on July 19, 2012, as well of Jeffreys’ person when he was arrested at the airport on Jan. 30.
Jeffreys is known for his central role in a development plan of the Ridpath Hotel. He faces 73 felony charges ranging from bank fraud to theft, though none relate to the shuttered downtown high-rise.
After violating previous orders by a judge and threatening a business associate and FBI special agent, Judge Peterson ruled that Jeffreys must remain in jail until his January trial.
Federal investigators are attempting to seize an Arizona property owned by Spokane real estate investors as part of a broader probe into alleged fraud by the couple, who are tangled in the complicated ownership of the former Ridpath Hotel complex.
FBI agent Lisa Jangaard filed a request last week to seize an office building in Sun Lakes, Ariz., a suburb of Phoenix. According to court files, Greg Jeffreys and his wife, Kimberly Jeffreys, obtained $600,000 from an investor as partial payment for the purchase of an upscale office building in San Francisco.