Business Owner Pleads Guilty to $1.5 Million Fraud Scheme

ParkmanLawFirm
April 3, 2013

The owner of Peak Management, JonPaul Edward Sauer, waived his right to a federal grand jury on Tuesday and pleaded guilty to conspiracy to commit mail and wire fraud in front of United States District Judge Greg Kays. In doing so, Sauer admitted that he engaged in a wire fraud scheme from February 1, 2007 until February 14, 2008 that caused Wells Fargo, Inc. losses of approximately $1,500,900.

JonPaul Sauer, 41, was formerly the chief executive officer, co-owner, and co-manager of Flatirons Financial Inc. This financial company was an acquisition and improvement lender that made rehabilitation loans on distressed properties primarily in Kansas City. Sauer is guilty of submitting fraudulent paperwork which allowed him to make improper draws of around $26.6 million on a line of credit from Wells Fargo Foothill in 2007 and 2008. He was able to hide the delinquency of the 129 loans through several methods including manipulating construction escrow accounts.

Flatirons Financial was acquired by an unrelated third party entity in late 2007. Sauer continued in his management positions until he was fired in August of 2008.

Under federal statutes, JonPaul Sauer could face a sentence of up to 20 years in a federal prison without parole and a fine of up to $250,000. The sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office. The case is being prosecuted by Senior Litigation Counsel Linda Parker Marshall and was investigated by the Federal Bureau of Investigation.

If you find yourself facing federal fraud charges, it is important to find an experienced wire fraud attorney to represent you. The white collar criminal attorneys of Parkman & White, LLC have a history of success in the court room and are ready to represent clients nationwide.