Ga. Real Estate Lawyer Charged in Alleged $28M Ponzi Scheme
A Georgia lawyer accused of masterminding a $28 million real estate Ponzi scheme that duped 125 investors was charged today with one count of wire fraud in a case that he himself initiated.
Attorney Robert P. Copeland of Marietta claimed to be spending some $40 million he obtained from investors over at least the past five years for purchases of secured real estate interests, reports the Atlanta Business Chronicle.
However, the 48-year-old real estate practitioner is accused by the U.S. Attorney’s Office of instead issuing fictitious notes and security deeds to investors, according to the article and a press release reprinted by the Daily Citizen.
In classic Ponzi-scheme fashion, “an unsustainable and ever-expanding mountain of debt” was created as Copeland used money from later investors to repay promised returns to earlier investors, the press release recounts. “When the scheme collapsed in early 2009, Copeland was left owing over $28 million to over 125 victims.”
Copeland himself came forward and brought the alleged scheme to the attention of prosecutors, and is cooperating in the investigation, the press release states.
“While his punishment will reflect the seriousness of his massive and long-running scam, his contrition and cooperation will also be given consideration,” says U.S. Attorney David Nahmias in the release. “You are much better off knocking on our door to confess, instead of waiting for the FBI to come knocking on your door.”
The release says Copeland’s cooperation has helped the government reclaim assets that will be used to help repay investors for some of their claimed losses. Late last month, the Atlanta Journal-Constitution reported that the U.S. Attorney’s Office for the Northern District of Georgia had filed a forfeiture suit to obtain Copeland’s assets.
Related coverage:
ABAJournal.com: “I Didn’t Know What I Was Signing, Testifies ‘Ruined’ N.C. Real Estate Attorney”
ABAJournal.com: “NC Lawyer Convicted in $15M Mortgage Fraud Case”
ABAJournal.com: “Bizarre $50M Fraud Case Will Help NY Lawyer Challenge Law Office Raid”
