Bend CPA Pleads Guilty to Wire Fraud and Conspiracy to Commit Money Laundering Related to Summit Accomodators

April 08, 2011

PORTLAND, Ore. – U.S. Attorney Dwight C. Holton announces Brian D. Stevens, age 55, of Bend, Oregon, pled guilty on Thursday, April 7, 2011, to charges of conspiracy to commit wire fraud and conspiracy to commit money laundering offenses in connection with the operation of his former business, Summit Accomodators, Inc., headquartered in Bend. Pursuant to a plea agreement, Stevens admitted he and others defrauded Summit’s customers from 1999 through 2008, misused over $44 million of customer funds, and caused 91 Summit customers to lose $13.7 million. Stevens agreed to be sentenced to between four and eight years imprisonment. His sentencing hearing is scheduled for September 13, 2011 at 9:00 a.m.

Stevens and alleged coconspirator Mark A. Neuman, age 56, also of Bend, were charged on March 18, 2011 with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering offenses. Neuman pleaded not guilty to both charges on April 6, 2011.

At his guilty plea hearing, Stevens, a Certified Public Accountant, acknowledged he and others created Summit to help customers take advantage of lawful federal income tax deferral transactions. In a typical transaction, a customer would sell income producing property, allow Summit to hold the proceeds of the sale, then buy another income producing property within 180 days. Federal income tax laws then allowed the customer to defer paying taxes on the profits from sale of the first property. Summit eventually opened affiliate offices in Texas, Washington, Utah, Montana, Wyoming, Nevada, and Lake Oswego, Oregon.

Stevens admitted that through Summit, he and his coconspirators promised Summit’s customers their money would be deposited in a bank, where it would remain for the 180 day period until used to purchase another income producing property. Stevens acknowledged that from 2004 through October 2008, Summit held between $49 million and $109 million of its customers’ money in a typical month.

Stevens admitted that contrary to their promises to Summit’s customers, he and his coconspirators used Summit customers’ money to invest in over 100 real estate projects and that he and his coconspirators had direct personal interests in most of these projects. Stevens also admitted the conspirators loaned a portion of this money to individuals and businesses, and to themselves.

Stevens admitted he and his coconspirators concealed this fraudulent activity, in part, by creating a company called Inland Capital Corporation, loaning Summit customer money to Inland Capital, then causing Inland Capital to loan the money to small corporations they created to own each real estate investment.

Stevens admitted he and his coconspirators further hid the fraud scheme by concealing from most of Summit’s employees and from most of the owner-operators of Summit’s affiliates that the conspirators were using Summit customer money to invest in real estate and to loan to themselves and others. When Summit’s customers and affilate owner-operators began to express concern about the safety of Summit customer money, the conspirators used statements in e-mails and other media to convey the false impression that all Summit customer money was deposited and maintained in financial institutions.

“We will vigorously investigate and prosecute anyone, especially licensed professionals, who cheat others to enrich themselves,” said U.S. Attorney Holton.

This case is being investigated by the Federal Bureau of Investigation, the Criminal Investigation Division of the Internal Revenue Service, the United States Postal Inspectors, and the Oregon Division of Finance and Corporate Securities. Assistant U.S. Attorney Seth Uram and Special Assistant U.S. Attorney Helen Cooper, as part of a partnership venture between the Seattle Region, Social Security Administration, Office of the General Counsel and the United States Attorney’s Office in Portland, Oregon, are prosecuting the case.