California Real Estate Fraud Report

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29
Jul

42-Year Prison Sentence for James Koenig for Operating Ponzi Scheme

James Koenig, 60, a Redding man who owned Assent Real Estate Corporation (AREI), has been sentenced to 42 years in prison for operating a Ponzi scheme, according to Attorney General Kamala D. Harris. AG Harris’ press release states that “more than 400 investors, most of them elderly,” were defrauded out of over $90 million.

Koenig, who had pleaded not guilty, was convicted last May of 35 felony counts, including conspiracy, use of a scheme to defraud in connection with sales of securities, sales of securities by means of false statements, and residential burglary relating to the sales of fraudulent investments. The jury also found special enhancements for “great takings” because of the large amount of loss involved.

AREI’s business was the acquisition, management and resale of commercial property and elder care facilities.

Gary Armitage, one of Koenig’s co-defendants, was sentenced last April to 10 years in prison after pleading no contest to four felony charges of conspiracy and securities fraud. You can find many posts about this case on the California Real Estate Fraud Report by searching his name using the tool bar on the left side of this blog.

In his dealings with his investor-victims, Koenig did not tell them that he had a previous federal conviction for mail fraud or that AREI was in financial trouble. Many were elderly persons (elder financial fraud, elder financial abuse) who gave Koenig their life’s savings and home equity, causing devastating losses to those victims.

James Koenig, as was Gary Armitage, was sentenced in Shasta County Superior Court, where he will later face a restitution hearing.

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The information and notices contained on The California Real Estate Fraud Report are intended to summarize recent developments in real estate fraud, mortgage fraud, short sale fraud, REO fraud, appraisal fraud, loan modification scams, loan modification fraud and other real estate related crimes occurring in Los Angeles and California. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about real estate fraud, mortgage fraud and appraisal fraud matters or who believe they require legal counsel should seek the advice of an attorney.

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