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Real estate guru helped set up system to bring outside investors into alleged fraud, witness testifies

Related Topics: Rick Koerber

Prosecutors used a key witness in a federal trial on Friday to pierce the veil between Rick Koerber and a downline of investors who poured $17 million into his real estate investment companies before their collapse in the late-2000s financial crisis.

Michael Isom of St. George was one of a small number of investors who gathered money from others and gave it to Koerber on implications that they would receive 1 percent to 5 percent interest per month and that their money was safe.

Isom, testifying at the end of the first week of what could be an eight-week trial, said it was Koerber who helped him set up the procedures for bringing in money from others.