Jere Loy Parkhurst, 46, was sentenced by U.S. District Judge James A. Teilborg to 13 months in Federal prison for his role in a real estate investment scheme.
Parkhurst pleaded guilty on January 24, 2013, to conspiracy to commit wire fraud. A restitution hearing is scheduled for May 29, 2013. The government will be requesting restitution to victims in excess of $900,000.
As part of his guilty plea, Parkhurst admitted he was engaged in the business of remodeling and reselling homes in the Phoenix metropolitan area. In order to entice investors to provide money to him, Parkhurst made representations that he would use the money to purchase and/or remodel a specific Phoenix home for resale; and that he would make substantial interest payments to the investors. Parkhurst admitted that he informed investors that he would pay them 25% or more in interest for their investment.
Parkhurst admitted he began using investor money to fund other areas of his business instead of using the money to remodel a specific home as promised. Parkhurst also admitted that he solicited money from investors with promises of substantial interest payments or returns and received investor money while knowing that he was not repaying or making interest payments to other investors as promised.
The investigation in this case was conducted by Internal Revenue Service Criminal Investigation and the United States Secret Service.