Thread by @BenWinslow

Back in court for Rick Koerber's sentencing. It's a packed courtroom. The feds are recommending 20 years in prison for him Some background: fox13now.com/2018/09/20/jur… @fox13 #utpol

People are piling into the courtroom, hugging Koerber's wife. They're sporting the orange T-shirts that say "Free Rick Koerber" on the front and "Political Prisoner" on the back. U.S. Marshals just told the crowd to squish in and people are glaring at us to move for them. #utpol

As Koerber is led in, his supporters stand for him and say "we love you Rick!"

The courtroom is now at capacity and it looks like no one else is being let in. @fox13 #utpol

FYI, Koerber is in jail and has been since May after an incident in Oregon. Here's what happened there: fox13now.com/2019/05/31/uta… @fox13 #utpol

Judge Fredrick Block walks in and the audience rises (except a few who appeared to remain seated in protest).

He warns this may be a long sentencing. @fox13 #utpol

Judge Block says he'll take care of an "11th hour motion" to reconsider and/or declare a mistrial.

"We have to dispose of that first," he says signaling he's not a fan of the motion. @fox13 #utpol

Koerber's lawyer, Kathy Nester, reminds the judge that he invited them to file it. It's surrounding false testimony by a witness during Koerber's trial.

"I did leave the door open during the course of the trial," Judge Block concedes. @fox13 #utpol

Government lawyers remind the judge that it's the same motion he denied at trial.

"It's without merit," prosecutor says, and past the deadline to grant a new trial.

Judge Block DENIES motion for a new trial. @fox13 #utpol

"This prosecution has been unlike any other!" Judge Block says.

He references the intensity of the case.

"I really bent over backwards to give the fairest trial I could give a defendant," he tells Koerber. @fox13 #utpol

Judge Block reminds the defense he blocked use of the word "Ponzi" from Koerber's trial.

He goes over the lengthy proceedings in more than a decade, plus acknowledging likely appeals. @fox13 #utpol

Judge now going over federal sentencing calculations.

But the big thing here is the feds want the judge to go OVER what is recommended and give Koerber 20 years. Here's their filing... @fox13 #utpol

Government calculates financial impact at $45 million. Koerber objects and also says this wasn't a Ponzi scheme.

Judge Block rules AGAINST Koerber on that one. So he's considering it a Ponzi scheme. @fox13 #utpol

"We're dealing with what we would call in New York a classic Ponzi scheme," Judge Block says, adding: "Classic Ponzi scheme dynamic."

I'm seeing some faces fall here in court amongst Koerber's supporters surrounding me. @fox13 #utpol

Judge Block says he'll accept the loss calculation of $45 million. (Remember, prosecutors originally claimed this was over $100 million).

Judge moving on to how many victims there are, but notes defense really didn't fight that and government was "charitable" on this one. #utpol

Judge Block announces he will REJECT the government's recommendation for 20 years.

A win for Koerber on that one. @fox13 #utpol

Judge Block says he does believe it was a sophisticated fraud scheme.

"Here I heard nothing but empty words that these monies were invested in real-estate," the judge says. "This is the most unsecure promissary notes I could imagine in my life!" @fox13 #utpol

"He has not once acknowledged that maybe he did wrong. Maybe it was inappropriate," Judge Block says. "Not an iota of responsibility for what turned out to be a major Ponzi scheme. Bernie Madoff would have been proud."

Koerber's defense lawyer Kathy Nester back up to argue about the base offense level.

Judge Block wants to hear about supervised release conditions (in the eventuality that Koerber is released). @fox13 #utpol

A difference between New York courts (where Judge Block practices) and Utah courts: We require terms of supervision to be read into the record. He seems to think it's weird, but he'll go with it. @fox13 #utpol

"Mr. Koerber fully intends to be employed at some point," Nester says, asking about a requirement he have nothing to do with real-estate investment.

"It's so broad, it could swallow up a lot," she says.

Judge Block says probation needs to recognize he be employed. @fox13 #utpol

"It's really clear to me those poor victims that lost their life savings cannot expect any restitution," Judge Block says.

@fox13 #utpol

"Sometimes miracles happen," the judge adds on restitution before moving on.

He still has not formally pronounced sentence, BTW. This is kind of unusual for the practices of this court. @fox13 #utpol

Now Judge Block wants to hear from counsel on "what the proper sentence should be."

Defense wants to talk about Koerber's medical situations. But that could chop some time off his sentence. @fox13 #utpol

"It seems Mr. Koerber has preyed upon his fellow Mormons in ways which are troublesome," Judge Block says. "You may want to address that. You had a good Mormon jury convict Mr. Koerber. Mormons have a good reputation for trustworthiness." Groans from audience. @fox13 #utpol

Judge Block keeps going, making comments about Mormons and how Utah is the fraud capitol of the nation.

"This is a characteristic that is a double-edged... it makes them more vulnerable," he says. He says trustworthiness is admirable, but makes them vulnerable. @fox13 #utpol

"Where I hail from people are less trustworthy," Judge Block says (he's from New York).

He asks Nester to address Koerber's lack of acceptance of responsibility. @fox13 #utpol

Nester asks to get the last word on behalf of her client.

U.S. Attorney's Office goes up. No victims intend to speak at sentencing, prosecutor says.

Medical situation? Prosecutor says they haven't gotten "objective proof those things exist." @fox13 #utpol

A lot of letters were sent to the court in support of Koerber. Some question if he really committed a crime. Prosecutor asking the judge to reject all that. @fox13 #utpol

"He was capable of great deception," prosecutor says, adding "this was a massive, calculated Ponzi scheme. One of the biggest in state history."

He tells the judge Koerber was motivated by "vanity and ego." @fox13 #utpol

Koerber capitalized on the LDS faith, taking advantage of the desire to be self-reliant and be independent.

"He spoke their language," prosecutor says. @fox13 #utpol

Prosecutor calls it "massive and egregious," noting his billboards, shows, etc. that were EVERYWHERE in Utah.

Judge Block says there's nothing wrong with advertising. Prosecutor counters Koerber "liked to posture success, sort of like 'fake it 'til you make it.'" @fox13 #utpol

Prosecutor pivots to Koerber's legal work under different names, issues with Oregon's Court of Appeals (background: fox13now.com/2019/05/31/uta… )

He never says "maybe the problem is me?" prosecutor says. @fox13 #utpol

Prosecutor just accused Koerber of "gaslighting" people.

Anything good to say about him, Judge Block asks. Prosecutor appears thrown off. He's sure Koerber's a good father, but wishes he'd not be so deceptive with people. @fox13 #utpol

Judge Block dismisses the prosecutor and asks to hear from Koerber's defense, giving her praise for her work.

Nester says there are some victims who do with to speak.

"Step right up here!" judge says. FYI, they SUPPORT Koerber. @fox13 #utpol

James Hough from WY begins by saying "I am not a victim, nor have I been a victim."

"I want to hear from victims," Judge Block says, dismissing him.

"Hear him out!" someone in the audience shouts. "It's bullshit," another says.
@fox13 #utpol

Clyde Long pops up with the same thing, refuting "the Wall Street rag that considers Mormons stupid."

"I want to listen to victims. If you're not a victim," Judge Block says.

"Marshal, next."

Judge Block is having NONE OF IT. @fox13 #utpol

Judge Block hears from the next one.

"You're a true victim," the judge says, staring him down.

"I do feel like..." the man starts. Judge Block cuts him off and says "you want me to go easy on him, right?"

"Correct," the man says, admitting he lost $1.5 million.

@fox13 #utpol

"Here I'm a victim but I want to ask your honor to..."

"Sentencing is very difficult," judge cuts him off.

Judge Block appears to be toying with these Koerber supporters, forcing them to admit they're victims. @fox13 #utpol

"I am a victim of these fraudulent prosecutors," another man says.

Judge Block cuts him off and asks how much he's lost?

"You say you're a victim. How much money?" judge says.

"About 3 million," the man says.

The man hedges. Judge cuts him off. People applauding. #utpol

There's an altercation in the courtroom. The man is being physically escorted out of the courtroom. The audio is going haywire.

"You're a bully!" someone in the audience shouts at the U.S. Marshals.

Judge Block cuts off the rest of testimony. @fox13 #utpol

Defense attorney says she didn't know what they were going to say.

Judge Block is angry, says she called for victim testimony.

"I was not involved in that at all," Nester says.

"Apology accepted by the court," he replies. @fox13 #utpol

The man appeared to fight back at US Marshals who sought to remove him from the courtroom. He was dragged out as Koerber supporters shouted at the marshals and the judge.

Defense trying to talk about sentencing guidelines. @fox13 #utpol

Koerber's defense lawyer making a good case about him being a provider for his family and that he won't start "another empire."

Despite everything that just happened, Judge Block is actually making some considerations the defense is requesting. @fox13 #utpol

Nester says Koerber has an autoimmune disease that can lead to hospitalization, and some kind of issue that could lead to asphyxiation.

She says Koerber wants to talk to the judge and disputes he hasn't accepted responsibility. He made some "bad decisions." @fox13 #utpol

"He made decisions about the way he ran his business that harmed people he loves and people that he cared about," Nester says.

Koerber turned over all his docs to state investigators, she says. State declined to prosecute him, and he still met with FBI. @fox13 #utpol

BTW, the number of US Marshals who are in this courtroom have increased dramatically as sentencing continues.

I count 9 from my vantage point in the courtroom. @fox13 #utpol

"After 8 or 9 years of this merry-go-round," Judge Block says, referencing again the "Mormon jury" that found him guilty.

He's cutting Nester off and asks to hear from Koerber. She asks to talk about "the Mormon component."

@fox13 #utpol

"It is a little bit offensive, your honor, to listen to the government make a decision on its own that he's not a real Mormon," Nester says.

As Judge Block talks about "so-called victims," the people in the audience around me are grumbling. @fox13 #utpol

Nester making a hard sell for a lighter sentence, arguing he still had $31 million in assets at the time (this was a critical part of the defense in trial) including $15 million in "lease options."

Judge Block says today "there's nothing." Nester says market crashed. #utpol

"This was doomed to fail. Clear as a bell," Judge Block says, seemingly rejecting her argument.

"It's undeniable Mr. Koerber has lost every financial, material thing he has," Nester says.

"This is a tangled web here," Judge Block counters. @fox13 #utpol

"What do you say about sending that message?" Judge Block says, referencing the "epidemic in Utah" of fraud cases.

Nester says she's not a fan of using a criminal case to "send a message." Audience here getting restless. @fox13 #utpol

Referencing reporters like yours truly here, defense argues the government sent its message about cracking down on fraud.

"This case has certainly proven that," she says. @fox13 #utpol

Judge Block asks to hear from Koerber and asks for him to be unchained.

"Thank you, your honor," some people in the audience yell.

US Marshals are standing near Koerber as a precaution. @fox13 #utpol

@fox13 "I have a bit of a daunting task because I’ve bene listening carefully to what you’ve been saying," Koerber begins.

He has a few things he wants to clear up, but understands he was convicted by a jury. @fox13 #utpol

Koerber going over how he started his business and his "non-traditional" ways of real-estate acquisition.

"My original idea was not to prey on Mormons or anyone. my original idea was to make a difference," he tells the judge. @fox13 #utpol

This feels very much like Rick Koerber is giving a seminar to the court while surrounded by US Marshals and in a jail jumpsuit. @fox13 #utpol

Koerber reiterates he does not believe this is a Ponzi scheme.

Judge Block says he's "not going to let it go on forever" and Koerber asks for 15-20 minutes to explain himself. @fox13 #utpol

Koerber says he took responsibility to ensure people were paid and insists people were not defrauded.

He references the people who attempted to speak from the judge. @fox13 #utpol

"No one who actually dealt directly with me testified they were defrauded," Koerber tells the judge. "That's important to me."

@fox13 #utpol

Judge Block appears to push back and Koerber says he won't argue with him.

"It wasn’t a charade or an attempt to avoid responsibility when I would say 'If your name’s not on this list, I don’t know what happened to your money,'" Koerber says. @fox13 #utpol

"Your honor, respectfully, from the minute I couldn’t pay, I didn’t run and hide. I didn’t lie… I said I cannot pay you," Koerber says.

He reiterates it's a bad business deal. Judge Block basically says if he's right, the #10thCircuit Court will reverse it. @fox13 #utpol

Koerber says NO ONE at trial testified he used his religion to get people to invest.

"I wasn’t running or hiding," he reiterates to the judge, but he could have been less arrogant or even naive that he couldn't get $$ out of properties. @fox13 #utpol

"I just didn't believe I committed a crime," Koerber says.

"You're very good at it. I was listening to you make these pitches. I was thinking of investing myself at one point," Judge Block retorts.

@fox13 #utpol

On his recent court issues, Koerber says he's been trying to reinvent himself and has been working with lawyers across the country.

Koerber says he still has faith in government and the process. @fox13 #utpol

Judge Block says Congress sets the sentencing length and it's around 15 years in prison.

He's talking about respect for the rule of law (sending a subtle message to the folks in the courtroom). @fox13 #utpol

Koerber asks the judge to release him from jail pending appeal (he'll go to the #10thCircuit).

Judge Block wraps it up. Sentence being pronounced shortly. @fox13 #utpol

As Judge Block starts winding up with the sentence, US Marshals start moving around the courtroom.

@fox13 #utpol

BREAKING NEWS: Judge Block sentences "Free Capitalist" Rick Koerber to 14 years in prison.

It's less than what the judge anticipated giving. @fox13 #utpol

Judge Block will NOT release Koerber pending appeal. @fox13 #utpol

Defense gives its formal notice it will appeal his sentencing and ruling. @fox13 #utpol

“We love you Rick!” people shout.

“I know you’re using the money to restore the Constitution” says another.

“A bunch of tyrants!” a woman says. @fox13 #utpol