Chad Roger Deucher, Ponzi Scheme, Utah 2016

Orem Man Charged with Operating a $28 Million Ponzi Scheme

SALT LAKE CITY, Utah - Chad Roger Deucher, a 43-year-old man from Orem, is set to appear in federal court on May 26, 2016, to face charges alleging he operated a Ponzi scheme through a business he controlled that collected about $28 million from about 250 investors.

According to the indictment, Deucher owned and controlled Marquis Properties, a Utah company engaged in real estate transactions. He marketed Marquis as a company of experienced property professionals specializing in acquiring, repairing, and managing high quality cash-flowing properties in several markets across the country.

Deucher used direct solicitations, radio advertisements, a website, and real estate and retirement seminars to find investors for three types of investments offered through his company. The investment options included turnkey cash flow real estate investments, promissory notes secured by real properties, and joint ventures.

The indictment alleges that Deucher made oral and written misrepresentations about the investments in communications with potential investors. He represented that Marquis located, purchased, renovated and sold single family and small, multi-family homes in lucrative areas of the country. Deucher told investors that Marquis retained renovation crews, property managers and realtors on the ground to assist with all stages of the projects, eliminating the need for direct involvement.

The indictment alleges that Deucher failed to disclose to investors that the property Marquis offered as collateral were not owned by the company, were substantially encumbered, or were in uninhabitable or blighted condition. He also did not disclose that Marquis was insolvent and was unable to make interest and principal payments to investors, and that investor returns were being paid from the funds of new investors.

Deucher faces 18 counts of wire fraud and one count of fraud in connection with the purchase and sale of securities. The potential maximum penalty for each of the 19 counts in the indictment is 20 years in federal prison. The potential fine for the securities fraud count is $5 million. Deucher is set to appear in U.S. Magistrate Judge Brooke C. Wells' courtroom on May 26, 2016, at 1:30 p.m.

Source: https://www.justice.gov/usao-ut/pr/orem-man-charged-fraud-indictment-alleging-business-was-run-ponzi-scheme