Mark A. Neuman, Lane D. Lyons, Timothy D. Larkin, Conspiracy to Defraud Clients and Money Laundering, Oregon 2013
Three Former Business Owners Convicted of Major Fraud Scheme
PORTLAND, Ore. – A jury in federal court in Portland today convicted three former owner/operators of Summit Accommodators, Inc., of Bend, of conspiracy to commit mail fraud and conspiracy to commit money laundering in connection with a 10-year fraud scheme.
The defendants, Mark A. Neuman, Lane D. Lyons, and Timothy D. Larkin, used $75 million of client funds for undisclosed personal investments in real estate, investments in businesses in the Bend area, and loans to business associates and family members. Sentencing in the case is scheduled for October 23, 2013, before U.S. District Judge Anna J. Brown.
“Attorneys, certified public accountants and business executives who, motivated by greed, lie to clients to gain use of their money for personal purposes are especially deserving of prosecution and punishment,” said Amanda Marshall, U.S. Attorney. “This office and our federal and state partners will do whatever it takes to bring dishonest professionals to justice.”
After three weeks of trial and two and one-half days of deliberations, the jury found Neuman, Lyons, and Larkin guilty of conspiring to defraud the clients of their former business, Summit Accommodators, Inc., by misrepresenting how they would hold and use client funds. Several thousand clients entrusted them with more than $1 billion from 1999 to 2008, when the business closed and filed for bankruptcy.
Neuman and Stevens created Summit in 1991 to help customers take advantage of lawful federal income tax deferral transactions. In a typical transaction, a customer would sell income-producing property, allow Summit to hold the proceeds of the sale, then buy another income-producing property within 180 days. Federal income tax laws then allowed the customer to defer paying taxes on the profits from sale of the first property.
The trial evidence showed that although Neuman and Stevens began using their clients' exchange funds for personal investments before 1999, they promised their clients their exchange funds would remain in Summit bank accounts and would only be used to complete their tax deferral exchanges. Neuman was responsible for creating Summit marketing brochures and Summit's website. Both falsely promised Summit would maintain client funds in bank accounts or in government securities.
Defendants:
- Mark A. Neuman
- Lane D. Lyons
- Timothy D. Larkin
Criminal Charges:
- Conspiracy to Commit Mail Fraud
- Conspiracy to Commit Money Laundering
City and State:
- Bend, Oregon
Exact Date:
- October 23, 2013 (sentencing)
Sentence or Outcome:
- Sentencing scheduled for October 23, 2013
Dollar Amounts:
- $75 million of client funds used for personal investments
- $1 billion entrusted by clients from 1999 to 2008
Key Facts
- State: Oregon
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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