Christopher Burhans, Million Dollar Investment Fraud Scheme, Pennsylvania 2009

Christopher Burhans Charged with $1M Investment Fraud Scheme

Lebanon County, PA - A 64-year-old man has been charged with orchestrating a million-dollar investment fraud scheme using two private mortgage companies.

According to the U.S. Attorney's Office for the Middle District of Pennsylvania, Christopher Burhans, of Lebanon County, has been charged with conspiracy to commit mail fraud. Burhans operated two private mortgage companies: Angelic Ventures and Home Buyers Solutions, Inc. (HBSI).

Burhans allegedly carried out the scheme by placing advertisements in farming newspapers, promising investors high returns on their investments. He claimed that their money would be used solely for making loans for the purchase of real estate. However, an investigation revealed that Burhans misappropriated much of the money he received from investors, diverting it to other businesses he owned and for his own personal needs.

Between April 1, 2005, and May 1, 2007, Burhans received and deposited approximately $1,880,150 from Angelic Ventures investors. Between November 2006 and April 2008, he received and deposited approximately $450,000 from HBSI investors.

As of December 2009, Burhans owed investors in excess of $1,000,000. In a letter to investors that year, Burhans misrepresented that the businesses were no longer operational due to the economy. However, an investigation revealed that Burhans used investor money to purchase multiple timeshares for his personal use.

The case is being prosecuted by Assistant U.S. Attorney Joseph J. Terz. The U.S. Attorney's Office filed a plea agreement, which must be approved by the District Court. Indictments and criminal informations are only allegations, and all persons charged are presumed innocent until found guilty in court.

The maximum penalty under the federal statute is five years' imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge will consider and weigh various factors, including the nature, circumstances, and seriousness of the offense, the history and characteristics of the defendant, and the need to punish the defendant, protect the public, and provide for the defendant's educational, vocational, and medical needs.

Source: https://www.justice.gov/usao-mdpa/pr/lebanon-county-man-charged-million-dollar-investment-fraud-scheme