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Two county cozeners who had previously pleaded guilty to bilking investors were sentenced today in cases brought by the U.S. Attorney's office. Richard M. Hersch was sentenced to 110 months. More than 150 investors had plunked $25 million in the pot on Hersch's claim that he could make them 2% to 6% per week -- repeat, per WEEK -- through his racetrack scheme. He claimed his company had contracts with major horse racing tracks around the country to operate ATM machines in areas used by track employees. He claimed he had 160 employees and hundreds of ATMs. It was a bogus assertion.
Rollo Richard "Rick" Norton II of Ramona, an investment advisor, had a project to convert an apartment project to condos. After raising money from investors, he found he couldn't service the debt. So in a scheme that ran from 2001 to 2005, he lined up straw purchasers who let him use their names and credit histories so he could obtain new mortgage loans. He told them he would take care of mortgage and tax payments. He also admitted to transferring ownership of condo units into the names of some people without telling them as a way of getting new loans. There has been a major civil case in the matter; the amount of his restitution the court demands of him has not been decided.
Two county cozeners who had previously pleaded guilty to bilking investors were sentenced today in cases brought by the U.S. Attorney's office. Richard M. Hersch was sentenced to 110 months. More than 150 investors had plunked $25 million in the pot on Hersch's claim that he could make them 2% to 6% per week -- repeat, per WEEK -- through his racetrack scheme. He claimed his company had contracts with major horse racing tracks around the country to operate ATM machines in areas used by track employees. He claimed he had 160 employees and hundreds of ATMs. It was a bogus assertion.
Rollo Richard "Rick" Norton II of Ramona, an investment advisor, had a project to convert an apartment project to condos. After raising money from investors, he found he couldn't service the debt. So in a scheme that ran from 2001 to 2005, he lined up straw purchasers who let him use their names and credit histories so he could obtain new mortgage loans. He told them he would take care of mortgage and tax payments. He also admitted to transferring ownership of condo units into the names of some people without telling them as a way of getting new loans. There has been a major civil case in the matter; the amount of his restitution the court demands of him has not been decided.