Gunnison CPA Gets 24 Years For Securities Fraud

DENVER, CO – A Gunnison-based certified public accountant who lured his clients, family and friends into a Ponzi scheme supposedly buying undeveloped Arizona land, was sentenced to prison last week.

LaVerne "Vern" Moter, 50, pleaded guilty in May to two counts of securities fraud and was sentenced on August 23, 2018 in Gunnison County to the maximum total prison time: 24 years, a statement from Colorado Attorney General Cynthia Coffman's Office said.

Moter was indicted by the Colorado Statewide Grand Jury in 2017 and was charged with ten counts of securities fraud. Prosecutors said Moter embezzled $2.6 million from investors over several years.

Between 2009-2013, Moter talked his clients into investing large amounts in an alleged real estate company called American Undeveloped Real Estate Fund and other companies he controlled, the indictment said. Moter allegedly convinced his victims, many of whom he served as a personal accountant, to invest money in vacant Arizona property with promises that it would later be sold to commercial developers for a profit. Until the property could be sold, investors were promised interest between 5-12 percent per year.

The indictment names 10 different investors, who gave Moter hundreds of thousands of dollars each in the scheme. At first, Moter gave each investor fraudulent statements for their accounts showing purported interest gained and amounts in accounts, the indictment said. But the statements stopped in late 2013, investors told investigators, and Moter stopped communicating.

Meanwhile, Moter spent the money on personal expenses, including down payment on a Nevada house. In 2013, Moter declared personal bankruptcy in California, and investors received notices showing their money was gone, the indictment said.

Moter used his role as a trusted accountant to lure in his victims, the AG's office said. On his website, Moter offers his services as a motivational speaker: "Vern is a former 80 hour a week workaholic CPA who owned, then sold, his mega successful CPA and Financial Services practice....Audiences connect deeply with Vern not only because of his extensive business background, but also because he speaks from the heart and has an infectious passion for helping people," the website says.

Assistant Attorney General Jason Slothouber told the court that Moter spent investors’ money on his “lifestyle,” the Gunnison Times reported, including credit card bills reaching up to $56,000 in a single month. Prosecutors said Moter bought his wife a new Mercedes and the family rented a beachside home in Encinitas, Calif., and paid $29,000 per year in private school tuition for their children.

“White collar crime, like securities fraud, affects everyone in Colorado,” said Attorney General Coffman in a statement. “Financial crimes are a drag on our economy and put the savings of our hardworking citizens at risk. Often, the perpetrators prey on people who know and trust them, compounding the victims’ distress.”

Moter received the maximum 12-year sentence on both counts of securities fraud, with each sentence to be run consecutively for a total of 24 years, the AG's office said. He also was ordered to pay over $2 million in restitution.

Colorado citizens reported the suspected fraud to the Colorado attorney general's office, which got the investigation started, the AG's office said in a statement.

If you suspect fraud, you are advised to contact the Stop Fraud team at https://www.stopfraudcolorado.gov/ or by calling 1- 800-222-4444.

Image via Gunnison County Sheriff

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