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Home / Articles / News / Cover Story /  House of Cards? Page 4
Cover Story

House of Cards? Page 4

Anxious investors fear “Free Capitalist” Rick Koerber’s real estate investment empire is folding

By Eric S. Peterson
Posted // March 5,2008 - Principles, Principals and the Paper Trail
For Koerber, buying properties with his company Hill Erickson was problematic. “It was a big cash drain, but it made big cash,” Koerber says. He decided to loan money to Hill Erickson from his parent company FranklinSquires, and pay himself and his fellow Squires principals 5 percent monthly interest on the money loaned to Hill Erickson.

The cash flow made bank for Koerber and his partners, enough so that a colleague asked to get in on the action. Koerber found the only way to do this was to form another company, Founders Capital.

Founders also started loaning money to Hill Erickson and in turn, people started approaching Founders looking to invest. Koerber says he only allowed a small number of “accredited” investors to invest with Founders. According to Utah securities law, securities sold to accredited investors don’t have to meet the same legal disclosure standards that securities sold to other investors might. Accredited investors get more leeway because they have to be wealthy. An individual accredited investor, for example, must have a yearly income of at least $200,000.

That would be an investor like Paul Bouchard.

While Koerber insists Bouchard was simply an investor in Founders Capital, their business connections were closer than others—just down the hall, in fact. According to a January 2008 Utah Securities Division order to show cause, yet another company—Innovator Mortgage—had been employing Bouchard as a licensed mortgage lender. Innovator shared office space with Koerber’s FranklinSquires.

“We just rented space to them; it’s not like there were kickbacks or any kind of informal relationship like that,” Koerber says. Innovator also advertised on the Free Capitalist radio show. Koerber says unbeknownst to him, one of Koerber’s employees started soliciting for investments in Bouchard’s Hunters Capital.

The Securities Division document identifies former FranklinSquires accountant Rachelle Taylor as a sales representatives for Bouchard’s Hunters Capital. Taylor, with 10 others (including Free Capitalist radio producer Israel Curtis) were allegedly soliciting loans for Hunters Capital.

“It created a huge chain of people borrowing money and saying it was going to Founders and FranklinSquires,” Koerber says. Even though Hunters was accredited, the capital it allegedly raised came from more than 140 unaccredited investors, like those whom Skuba invested with. The money, however, still went to Founder’s Capital.

Koerber says he warned Bouchard he would cut him off from investing with Founders if he misrepresented their association. Despite assurances from Bouchard, the money raising continued, Koerber says.

Connections crept closer to Koerber in recent securities complaints from Idaho, where securities officials have filed civil complaints against companies Home Sweet Financial, LLC, and Streamline Financial, LLC. These companies allegedly issued unregistered securities totaling $3 million. The Idaho Department of Finance and Securities alleges the companies raised illicit funds and passed the money to yet another company—Annuit Coeptis—which, in turn, sent the money to Founders Capital.

Annuit Coeptis would pay Streamline and Home Sweet Financial 3 percent interest each month on the money and would in turn pay investors 1.5 to 2 percent monthly. The founder of Annuit Coeptis is former FranklinSquires Vice President Gabriel Joseph.

Joseph no longer works for FranklinSquires, Koerber says. And while Joseph was his right-hand man and a frequent radio show guest, Koerber denies any involvement with Joseph’s alleged fraud in Idaho. “Annuit Coeptis is a completely separate business from FranklinSquires,” Koerber says.

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REPLY TO THIS COMMENT
Posted // September 21,2011 at 13:31 When Koerber lived in Casper WY he became known to the community as a liar, a cheat, and a thief. That was some time back. Has he changed his ways?

 

REPLY TO THIS COMMENT
Posted // June 21,2009 at 16:36

 

REPLY TO THIS COMMENT
Posted // June 3,2008 at 10:09 I can’t believe that A Little Bit Suprised could possibly think that people would think he’s being honest. Should have been signed Kool- Aid drinker. Wow.

 

REPLY TO THIS COMMENT
Posted // March 29,2008 at 20:35 you all suck quit being babies and just realize 25% APY is low and I can get You 76% APY just live the principals!

 

REPLY TO THIS COMMENT
Posted // March 20,2008 at 13:37 Hey P-DCR,nnYou sound just like one of those Koerber boys, bunch of wannabes with no real formal education but think that they’ve stumbled on the Secret of the Money Tree that us normal successful consumers that made our money the honest way using the true principles instilled on us by the Founding Fathers which involves HARD WORK and SACRIFICE did not. Let us all see how long can you keep up with your Ferraris, Million Dollar homes which don’t even belong to you but the folks whose life savings from years of back breaking labor you’ve fleeced! What now?- You’ve run out of credit partners, straw buyers, greedy investors, no more free money from the banks you’ve robbed and you’re starting an insurance scam!! Quit already!! Your arrogance will consume you !! Admit that you’ve made a terrible mistake and don’t drag more people into the oblivion with you. You are probably a member of the church yourself so your family members probably also own a PRIUS. There’s nothing wrong with that, remember the Word of Wisdom? Be prudent with your finances and live well below your means. The Koerber boys always preached The Book of Mormon this and Founding Fathers that, yet you boys trampled all over your own words and ’philosophy’. 13 Principles of Wealth = Hypocrisy + David Koresh like BS. And yes, I know Koerber and Gabriel personally. They are indeed HIDING from me. Where are my $225K? Been waiting since 03/07. And don’t post another one of your slapping your own face rebuttal like the one in your website. It’s just goes to show what con artists you really are. You know who I am and what my phone number is.

 

 
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