An eight-year criminal case against a former real estate guru alleged to have orchestrated a Ponzi scheme has started a new chapter.
Rick Koerber’s second trial is slated for June 4. On Friday, U.S. Magistrate Judge Paul Warner appointed a team of federal defenders to represent Koerber.
The team will be led by Federal Public Defender Kathryn Nester. She will be helped by assistant defenders Robert Hunt and Daphne Oberg.
Koerber had previously retained Marcus Mumford, who represented him in the first trial.
Koerber’s first trial, which stretched eight weeks, concluded Oct. 16 with a hung jury and a mistrial. Despite the costs of a second trial, the U.S. Attorney’s Office said it was in the best interest of justice to get a unanimous vote.
Koerber is accused of taking about $100 million from investors and using about half as interest payments, paying it back to investors to give the appearance of profitability, from 2004 to 2008.
When payments stopped in 2007, investors were owed about $47 million, according to an indictment issued in January. Investors lost life savings, retirement funds and equity in their homes that they had taken out as loans and poured into Koerber‘s businesses.
Chief U.S. Judge David Nuffer is to preside over the new trial. Warner said if either side has an objection to Nuffer, they need to submit a motion arguing for a different judge by Jan. 1.
