An Arizona developer has been accused of stealing $20 million from investors in a scheme that lasted nearly 20 years, according to recent reports. John Hoover, along with his wife and son, are accused of fraud in filing bankruptcy and using a series of financial transactions to hide hundreds of thousands of dollars in assets from creditors. As many as 460 investors are said to have been affected by the scam.
In an unusual move, a federal judge denied Hoover bail, saying that he was a “significant flight risk.” Hoover is a licensed attorney in California, and the judge believed that he was “willing and able” to defraud and deceive others.
The Long Story of Moving Money
According to the evidence presented so far in the case, Hoover is accused of hiding foreign assets including a $3.5 million Paris apartment from the government while filing for Chapter 7 bankruptcy in 2011. The FBI raided his Mohave County residents to find tens of thousands of dollars in valuable assets. So far, the FBI has uncovered evidence of French bank accounts as well as several expensive personal items such as watches, fur coats, paintings and jewelry.
Hoover faces life in prison if convicted of all charges. The Fort Mohave homebuilder is accused of creating nearly two dozen companies used to solicit money from investors in California and Arizona, including several widows who turned over their life savings to him based on his persona as an attorney and trustworthy family friend.
Authorities allege that Hoover diverted investor funds into his own accounts for his personal use. He is accused of using some money that investors were told was put into secure loans for high-risk speculation.
Fraud and Financial Crime Accusations
Fraud and financial crime accusations are often based on financial records seized in raids on homes or businesses. When authorities believe someone is committing financial fraud, they may attempt to obtain a search warrant for financial records. In some cases, these records may not clearly indicate who has committed the fraud, only that it may have been committed.
Sometimes people are accused of fraud when there is little evidence that the individual was involved in a crime. No matter what the circumstances, a person who is accused of a financial crime has a difficult job. He or she needs the reliable help of a criminal defense attorney well-versed in financial crimes.
Contact Alex Lane in Phoenix if you have been accused of fraud or other financial crimes.