Thread by @jm_miller

Alright, I'm back with more Rick Koerber coverage. Sentencing will begin soon for the real estate investor who was convicted of fraud, wire fraud and money laundering. Catch up on the latest: sltrib.com/news/2019/10/1…

The courtroom is already packed, with people struggling to find places to sit. A lot of the supporters from the Bundy-led protest earlier are trying to squeeze into the courtroom.

Koerber's supporters stand as he is led into the courtroom in handcuffs. A few yell, "We love you, Rick!"

Looks like the courtroom is at capacity. People are being turned away.

Judge Fredric Block takes the bench. Some of Koerber's supporters don't stand despite the call to "all rise."

Block is from New York and oversaw the trial. He's been brought in because all of Utah's federal judges have either been involved in the case before or recused.

"This prosecution has been unlike any other," Judge Block says. "I guess I did not know what I signed up for."

He says he's tried to be as fair as he could while presiding over the case.

The judge is going over all of the motions and arguments he's received. He notes that the prosecutors believe Koerber caused $45 million in losses.

Judge Block says he rejects Koerber's argument that this wasn't a "Ponzi scheme" by definition.

The judge calls this a "classic Ponzi scheme."

"He was able to prey upon innocent people," he says. "They trusted him. And their trust was not accommodated."

The judge says Koerber has never taken any responsibility for defrauding people or admitted that he may have done things that are inappropriate. He says Koerber has not shown "an iota of responsibility for what turned out to be a major Ponzi scheme."

Judge Block notes that some of these victims lost their life savings. He says it's unlikely Koerber could pay them back.

"But sometimes miracles happen," he says.

This hearing so far has seemed ... a little backwards? Judge Block has been going into what will happen when Koerber is released, what restrictions will be in place. But the real issue is in how much time Koerber will spend in federal prison.

Judge Block says Mormons are very trustworthy, which makes them more vulnerable. He notes that "a good Mormon jury" convicted Koerber, which is met with groans from Koerber's supporters in the gallery.

Federal prosecutor is up first. He says there are no victims that they know of who want to speak at today's sentencing.

Apparently Koerber has some medical issues, which his attorney says should mean a more lenient sentence. Prosecutor disagrees, says the federal prison can take care of him with no issues.

"It doesn't diminish the need for a harsh sentence here," he says.

"It was a crime motivated by vanity and ego," prosecutor says. "and it was particularly egregious the way Mr. Koerber went about endearing trust in his victims. He knew exactly what to say and do to get members of the Mormon community to trust him. He spoke their language."

Prosecutors notes Koerber had billboards, radio ads, fliers, etc.

What's wrong with that, the judge asks? A lot of people do that.

"That's true," prosecutors says. "But they aren't lying."

Prosecutor notes other alleged frauds Koerber has been involved in, including more recent allegations of Koerber defrauding a court in Oregon: "Most people don't act this way. Most people don't get to this level of deception in their lives."
(Background: sltrib.com/news/2019/05/3…)

So now it's Koerber's defense attorney's turn. She says there are victims here who want to speak. About half a dozen people raise their hand, saying they've been identified as "victims."

The first man stands up and says, "I am not a victim."

Judge Block waves him off, says he only wants to hear from victims. "Let him speak!" people are saying from the gallery.

A second man comes up, says he lost money but also does not consider himself a victim. Judge Block is not interested in hearing from him either.

A third man says he wants leniency for Koerber, saying he lost $1.5 million: "I would like to say that if sending Mr. Koerber to prison would get that money back, I would probably still be against it, even though I am a victim."

Fourth man says he lost $3 million.
"You are a forgiving victim?" Judge asks.
"Jesus said forgive everyone," the man says.

This is getting out of hand. The fourth man ends up getting wrestled out of the courtroom by security as people from the gallery yell at them to let him go.

The man had said that he felt he was victimized by the "fraudulent prosecutors" and not by Koerber.

Koerber's defense attorney apologizes to Judge Block, saying he didn't know what the victims would say. Block seems to be upset with what has happened, saying he only wanted to hear from actual victims of Koerber's fraud.

Defense attorney says that Koerber supports his family with just his income. She notes that his reputation has been damaged, and it's unlikely he would ever be able to create any kind of "empire" again.

But defense attorney pushes back on the judge's assertion that Koerber shows no remorse. She says Koerber recognizes that he made bad business decisions that harmed a lot of people whom he loved.

Judge Block again references the "good Mormon jury" who convicted Koerber. Anything else she wants to add, the judge asks?

She says she wants to address the "Mormon component." She says it's offensive that prosecutors have framed Koerber as "not a real Mormon."

Defense attorney says Koerber's business failed in a bad market in 2008. Judge Block dismisses this argument.

"This is not correlated with the market," he says. "This was doomed to fail from inception."

Koerber's attorney says her client has lost everything. Not just all of his assets, but his reputation. He had to sit here today, she says, as people called him a liar and a fraud in front of people he loved.

Judge Block asks if he should sentence Koerber to send a message that Utah isn't the place for easy-pickings for fraudsters? More groans from the gallery.

Koerber is now getting a chance to speak. But first, Judge Block says he wants Koerber's handcuffs removed. He says he doesn't believe Koerber will attack him.

"I understand a jury has convicted me and today is not the day to argue with that," Koerber says. "So I won't argue with that."

Koerber tells the judge about the beginning of his business, which he started at age 29. He said he started the business "not to prey on Mormons" but to make a difference.

He goes into the details of his first real estate purchase. He wants to present a spreadsheet to the judge now of the number of victims by the end.

He says he wants to use it to show why he didn't think he was running a Ponzi scheme.

Koerber says it's important to him that none of the victims testified that they were defrauded. (And, of course, there were those listed as victims who told the judge today they don't think Koerber defrauded them.)

"No one at trial testified that I used my religion to get them to invest," Koerber says.

Koerber notes he's been fighting these charges for more than 10 years.

"I have thought for 10 years, hundreds of times, of all the things I could have been better about," he says. "I could have been less arrogant, of course. I could have been less naive."

"There's a lot of people who do not have faith in our government or this process," Koerber says. "And I do, including the fact that I know you hold my life in your hands."

Koerber says that after he was convicted, someone asked him if he still believes in the government and legal system. He says he still does.

Koerber is wrapping up. He's asking that the judge allow him to be released and his sentence stayed while he appeals to the 10th Circuit.

"If I win on appeal, there are certain things that can not be undone if I am incarcerated," Koerber says. He'll lose his family's home.

Judge Block hands down his sentence: Rick Koerber will spend 170 months in prison — just over 14 years behind bars.

Judge Block says he's "not inclined" to release Koerber while his appeal is pending. Koerber will stay behind bars.

He urges Koerber to appeal as quickly as possible to get closure on this after 10 years.

The hearing is over. Koerber's supporters yell to him again:
"We love you, Rick!"
"I hope you don't believe in this system anymore!"
"I'm sorry they failed you!"