Real Estate Investor Pleads Guilty to Stealing Loan Funds

Allison Tussey —  February 13, 2014 — 1 Comment

Scott H. Summerhays, 55, formerly of South Lake Tahoe, currently in custody in Reno, Nevada, who fraudulently convinced 11 persons to loan him a total of $3.6 million for the purchase of a golf course near Gardnerville, Nevada, pleaded guilty to 24 federal felony charges.

The defendant pleaded guilty during the first day of trial to 14 counts of wire fraud, seven counts of money laundering, two counts of identity theft, and one count of aggravated identity theft. Summerhays, who was indicted in February 2012, faces over 30 years in prison and fines of up to $5.7 million, and is scheduled to be sentenced on May 29, 2014, at 10:00 a.m. by U.S. District Judge Larry R. Hicks.

According to the court records, during 2008 to 2010, Summerhays represented to potential investors that he was purchasing the Genoa Lakes Golf Club, Gardnerville, Nev. for $17 million and needed a short term loan to complete the deal because his own money was tied up in a trust. Summerhays also represented to the potential investors that he solicited funds for oil and gas investments in Texas and owned over $30 million in Berkshire, Las Vegas Sands and MGM stocks. Summerhays showed some of the investors a fraudulent investment account statement. Summerhays also claimed that he was in partnership with Las Vegas Sands owner Sheldon Aldelson, and showed potential investors a partnership agreement containing the forged signature of Adelson. In reality, Summerhays had no investment portfolio, and Adelson never heard of Summerhays or had any partnerships with him. Using this scheme, Summerhays was able to convince 11 persons to loan him money for the golf course, totaling approximately $3.6 million. None of the investors were repaid and they lost all of the money they loaned Summerhays.

Daniel G. Bogden, United States Attorney for the District of Nevada, announced the guilty plea.

The case was investigated by the FBI and IRS Criminal Investigation, and prosecuted by Assistant U.S. Attorneys Ronald C. Rachow and Megan Rachow.

“This is the second person to be convicted or sentenced of federal investment fraud charges in the northern Nevada area this week,” said U.S. Attorney Bogden. “In both cases, the defendants led their victims to believe that they were legitimate businessmen and used fraudulent documents to support their scheme. If you are considering a financial arrangement with someone, be sure to check the veracity of any documents they provide you, as fraudulent documents are common and easy to create.”

Allison Tussey

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One response to Real Estate Investor Pleads Guilty to Stealing Loan Funds

  1. Mrs Clara William February 21, 2014 at 9:56 pm

    My Name Is Mrs Clara William
    I want You all To be careful there nobody can help you here or even
    suggest how you can get financial help any answer of a loan lender
    to your question,you MUST ignore, because they are SCAMS…real
    SCAMS…i was a victim of which i was ripped thousands of
    dollars…well thank God for a Tom Mills Loan firm,I was referred to
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    meeting up to their necessary requirements,my loan was deposited in
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    the issue of me settling the transfer charges came up, I hold on to
    my faith due to the fact that my relative referred me, got it
    cleared, and as God should have it. little did I know that my
    financial shortcomings has come to a final HALT .If not for that
    quick referral from a relative of that genuine source ,I would have
    regretted my total life, because at that point in time I just
    divorced the father of my daughter,and my daughter (Sarah) was
    faced with a ” between life and death ” situation ..I was faced
    with her hospital bills and was also faced with foreclosure at my
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    them where necessary to those in real need)…I couldn’t comment on
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    into the hand of all these fraudulent loan officers (even in US) like
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    Feel free to email him at via
    Email:Holyredeemedloan@gmail.com ” and you will be free from Scams
    Thank YOu

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