Arizona developer and attorney John Keith Hoover was sentenced to 10 years in prison for his role in a major investment and bankruptcy fraud in which he created nearly two dozen companies solicit money from Arizona and California investors for bogus real-estate developments. Several investors were widows who gave Hoover control of the bulk of their estates based on his friendship with their families and because of the trust he developed as an attorney. Hoover encouraged investors to liquidate retirement accounts, life-insurance policies, mutual funds and securities, and Social Security death benefits to fund their investments with him, and then used investor money to pay his living expenses. When he ran out of money, he refinanced properties with false representations about salary, assets, liabilities, employment, and sources of down payments. Then, he and his wife filed bankruptcy while hiding assets. DOJ (AZ)
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