Laura Coleman, a 40-year-old Richmond woman has been indicted with her former Miami-based partner for allegedly bilking investors out of $132 million. The pair is accused of misappropriating money held for the owners of investment properties.

Coleman and Edward Hugh Okun face charges of conspiracy to commit mail and wire fraud; conspiracy to commit money laundering; 13 counts of wire fraud; three counts of mail fraud; seven counts of money laundering; and one count of bulk cash smuggling and forfeiture. Okun also is charged with making false statements. As the U.S. Justice Department summarizes the case:

According to the indictment, from August 2005 through April 2007, Okun and Coleman used 1031TG and its subsidiaries, all owned by Okun, in a scheme to defraud clients of millions of dollars through false pretenses. Section 1031 of the Internal Revenue Code allows investment property owners to defer the capital gains tax that would otherwise be due on properties sold, if the proceeds are used to purchase new property in a specified time frame. To facilitate such exchanges, investment property owners deposit the proceeds from the sale of their property with qualified intermediaries and sign exchange agreements, which include various promises by the qualified intermediaries to clients regarding the safekeeping and use of exchange funds.

 

Specifically, the indictment alleges that 1031TG obtained funds by promising clients that their money would be used solely for 1031 exchanges as outlined in the exchange agreements. After making such promises, Okun and Coleman allegedly misappropriated approximately $132 million in client funds to support Okun's lavish lifestyle, pay operating expenses for his various companies, invest in commercial real estate, and purchase additional qualified intermediary companies to obtain access to additional client funds.

Okun and Coleman also are charged with instructing employees to withdraw $15,000 in cash from one company's bank account and smuggle it to Okun's yacht in the Bahamas to avoid federal currency-reporting requirements.

Bacon's bottom line: This is really juicy. I wonder if Okun and Coleman were romantically entangled. I also wonder how many of the investors were Richmonders. River City hasn't had a delicious financial scandal like this in many, many years.