The charges are characterized as wire fraud because the financial transactions involved transferring money by wire.
As a result of the plea, Herman will be required to pay
Under federal sentencing guidelines, Herman could receive a maximum prison sentence of 20 years for each of the seven counts in his plea, or 140 years. "That's not in the realm of reality," attorney
The case goes back to 2007, when Herman managed the
One of Herman's victims,
"I told him untruthfully that the money would be used to fund the Teen Paparazzi project. Instead I used all the money to repay an earlier lender," Herman admitted.
In other instances, Herman said that some of the funds he raised were used for "legitimate expenses of the venture. But I diverted a portion of the funds to purposes other than the purposes that had been represented to the lenders."
At the same time, Ubhaus told this newspaper that there was tremendous pressure on Herman "to raise more money" for the movie venture.
Herman is expected to be sentenced in October.
Erickson misled investors into believing their investments were safe because they were backed by a family trust worth tens of millions of dollars.
He told investors their money would be used to build two high-rise condominium projects in downtown
Erickson did not tell investors he had previously been convicted of grand theft in connection with a similar real estate development scheme.
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