EUGENE, Ore. (AP) — Thirteen people have been arraigned in what prosecutors say is a multimillion-dollar fraud case tied to the collapse of Desert Sun Development, a Bend real estate development company.
Prosecutors say the victims list includes Umpqua Bank, Liberty Bank and other out-of-state financial institutions. Together, they lost more than $19 million after lending Desert Sun Development money for commercial and residential projects, some of which were never built.
On Wednesday, a dozen defendants from central or eastern Oregon were arraigned before a federal magistrate in Eugene on charges including bank fraud, wire fraud and making false statements on loan applications.
Trial is set for May 12.
A 13th person, Junction City-area developer Robert Brink, was arraigned on six counts of making false statements to a financial institution. Court documents allege he lied to Umpqua Bank, saying commercial buildings in Bend were going up as scheduled when the lots were vacant. His lawyer, Kelly Beckley, declined comment.
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Information from: The Register-Guard, http://www.registerguard.com
