Investments

Utah man formally charged with operating $28m real estate Ponzi scheme

Feds finally get day in court

Tom Harvey over at The Salt Lake Tribune is reporting a federal grand jury finally indicted Chad Roger Deucher.

The Securities and Exchange Commission, back in January, said Deucher’s Marquis Properties fraudulently represented that it sells interest in “turnkey real estate properties, promissory notes secured by real properties, and joint venture agreements to purchase real properties.”

Deucher allegedly didn’t tell investors that, in fact, the properties offered as collateral were often not owned by Marquis, were substantially encumbered, or were in uninhabitable or blighted condition, the SEC said.

Deucher and Clatfelter also allegedly don’t tell their investors that the company itself is insolvent and unable to make payments to its investors without the influx of new investor money.

“Because investors are being repaid from new investor funds, Marquis’ operation is a classic Ponzi scheme,” the SEC said in its complaint.

Harvey writes about the indictment yesterday:

Deucher allegedly promised returns of up to 22% — and monthly interest rates as high as 12% — to entice investors into his company, Marquis Properties, which he claimed was staffed by experienced property professionals who invested in buying and fixing up high quality properties that generated cash flow.

Deucher allegedly used real estate and retirement seminars, plus radio advertisements, direct solicitations and a website to reach potential investors, the indictment states.

Most Popular Articles

Airbnb properties wouldn’t make a dent in housing market

While the real estate market has lots of challenges during the COVID-19 pandemic, a tsunami of houses being sold by Airbnb hosts who can’t pay their mortgages isn’t one of them. HW+ Premium Content

Jun 02, 2020 By

Latest Articles

Here’s evidence of V-shaped recovery

This week, the “V-shaped” recovery in purchase applications is mimicked by the inverted “V-shaped” recovery of the St. Louis Stress Index. According to HousingWire Columnist Logan Mohtashami, this signals a return to a much more calm financial market.

Jun 05, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please