Kelly Gearhart, a former Central Coast real estate developer,<\/a> <\/strong>who was sentenced in July to 14 years in federal prison.<\/span><\/p>\nMiller operated Hurst Financial<\/strong>, which essentially acted a \u201cmiddle man\u201d between investors and real estate developers, including Gearhart. \u00a0Miller solicited investments in Paso Robles real estate development projects known as Beacon Road and Vista Del Hombre, which involved Gearhart, as well as the Salinas River real estate development project in Templeton.<\/strong><\/span><\/p>\nAfter obtaining funds from investors, Miller used approximately $3.7 million of the money for other purposes, contrary to his promises about how the money would be used.<\/span><\/p>\nMiller used money from investors to develop different real estate projects, make interest payments to investors, and pay-off loans related to different real estate projects, according to officials.<\/span><\/p>\nMiller also admitted that he aided and abetted false statements made by Gearhart to Heritage Oaks Bank.<\/strong><\/span><\/p>\nProsecutors argued that Miller helped Gearhart clear title to Vista Del Hombre<\/strong> lots that were securing victims\u2019 investments, and Gearhart then used those lots to obtain bank loans from Heritage Oaks Bank and San Luis Trust Bank, which was later acquired by Pacific West Bank.<\/span><\/p>\nIn asking for a prison term that was half that of Gearhart\u2019s sentence, prosecutors noted Miller\u2019s acceptance of responsibility and cooperation.<\/span><\/p>\nProsecutors also argued in court documents that, although Miller misspent money from victims, he did not steal the money for his personal use or to fund any lavish lifestyle.<\/span><\/p>\nUnlike Gearhart, who defrauded victims for his own personal gain, Miller \u201cwas an established businessman who committed certain crimes when faced with economic difficulties,\u201d according to a sentencing memo filed in court.<\/span><\/p>\nStill, prosecutors sought a seven-year sentence based on the significant impact Miller\u2019s crimes had on the community, as well as Miller personally profiting from commissions and fees on victims\u2019 investments.<\/span><\/p>\n\u201cMiller turned to fraud when faced with a choice between helping Gearhart and safeguarding victims\u2019 investments,\u201d said U.S. Attorney Eileen M. Decker.<\/strong> \u201cThis significant sentence emphasizes that he made the wrong choice.\u201d<\/span><\/p><\/blockquote>\nMiller pleaded guilty in 2011 to mail fraud, wire fraud, money laundering, and aiding and abetting a false statement to a bank.<\/span><\/p>\nIn addition to the seven-year sentence, Judge Wright scheduled a restitution hearing for Dec. 21.<\/span><\/p>\nJudge Wright scheduled another restitution hearing for Nov. 9.<\/span><\/p>\nThe case was investigated by the FBI and IRS.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"LOS ANGELES A federal judge sentenced a 67-year-old man to seven years for misappropriating millions of dollars investors gave him to invest in \u00a0Central Coast real estate projects, according to officials. In…<\/p>\n","protected":false},"author":1,"featured_media":7271,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3],"tags":[1789,1446,488],"class_list":["post-16644","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-main-slider","category-u-s-department-of-justice","tag-atascadero","tag-investors","tag-real-estate-fraud"],"yoast_head":"\n
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