Businessman denies any misconduct in fraud case

Rick Koerber, who earlier this week was indicted by federal prosecutors for allegedly defrauding investors in a multimillion-dollar real-estate business, struck back Friday and strongly denied any misconduct. He held a news conference Friday to air his allegations against state officials who, he claimed, have falsely accused him of illegal business transactions.

Koerber was indicted Tuesday in U.S. District Court on one count each of mail fraud, wire fraud and tax evasion in connection with what federal prosecutors characterized as a $100 million Ponzi scheme involving Koerber's business, Founders Capital.

Federal documents say this firm is associated with other firms owned by Koerber, including Franklin Squires Investments and Franklin Squires Companies.

Federal prosecutors said Koerber lured investors into a real-estate business knowing that what he was representing to them was untrue, and that Koerber used some of the money for expensive cars, personal housing and investments into other businesses such as restaurants and a film.

Koerber, however, said Friday that he welcomes his day in court to show he is innocent and that his business dealings are legitimate.

The Alpine businessman lashed out at several state officials, contending they persecuted him despite having no evidence of any illegal activity and despite thorough investigations that go back to 2004. He accused some state officials of breaking the law by spreading falsehoods about his business dealings. Koerber had harsh words for some state officials whom he accused of lying to him about investigations regarding his business, spreading false rumors that hurt business and, in the case of one state worker, threatening Koerber by saying that if he did not do what the man wanted, the individual would "start communicating" that Koerber was running a Ponzi scheme.

"He told me that if he and his department made the allegation, it would 'stick to me like glue,' " Koerber said.

Koerber said he had provided state securities officials with financial documents that, at one point, showed his company had $60 million in assets that exceeded liabilities.

However, Koerber said one of his friends taped another state employee on audio tape saying, "We've seen their balance sheets and they've got a shortfall of about $60 million, so it's just a matter of time before that collapses. So if you know anyone that's invested, bye-bye, they've lost their money."