PORTLAND, Ore.—A Tualatin man has pleaded guilty to money laundering after bilking investors out of millions of dollars, according to court documents.
Ronald Eugene Stover, 64, of Tualatin, Oregon, pleaded guilty to one count of engaging in monetary transactions in property criminally derived from wire fraud and a scheme to defraud investors.
Between 2010 and 2012, Stover solicited short-term loan investments from unsuspecting victims to fund various Xtreme Iron capital projects. He claimed to have a long track record of success in real estate development, business, and banking, and relied heavily on investor introductions made by other professional intermediaries to establish his credibility.
However, Stover’s claims were nothing more than a web of lies. He falsely told investors that their funds would be used exclusively for business purposes, that he would provide additional capital sourcing from his own funds, and that they would receive short-term repayment of their loan notes plus interest.
In May 2012, Stover emailed one victim, soliciting funds to purchase heavy equipment from Caterpillar. The victim wired $175,000 to Tri-Core Funding Group, an entity wholly owned and controlled by Stover, but was never repaid.
Stover used the funds to make over a year’s worth of mortgage payments on his residence in Tualatin, which was on the brink of foreclosure. He faces a maximum sentence of 10 years in prison, a $250,000 fine, and three years of supervised release.
As part of the plea agreement, Stover has agreed to pay more than $3.2 million in restitution and nearly $169,000 to satisfy a forfeiture money judgment. The IRS and FBI investigated the case, which is being prosecuted by Donna Brecker Maddux and Julia E. Jarrett, Assistant U.S. Attorneys for the District of Oregon.
Stover is scheduled to be sentenced on February 25, 2019, before U.S. District Court Judge Ann Aiken.
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Key Facts
- State: Oregon
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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