Arizona family indicted in federal swindling case
KINGMAN, Ariz. — A 52-count federal indictment alleges three family members living in northwest Arizona swindled millions of dollars from more than 460 investors since 1997.
John Keith Hoover, his wife, Deborah Boice Hoover, and their son, John Brandon Hoover, made initial court appearances in Phoenix after their Tuesday arrests in the Bullhead City area.
The 48-page indictment released by the U.S. District Court office of Arizona alleges that the elder Hoover, an attorney in real estate development and property management ventures, created 23 entities that were used to solicit investments. One of the better known entities is the El Rio Country Club and Golf Course in Mohave Valley.
The government alleged that some of the money was used to operate the various businesses but that Hoover spent a lot of the money to fund an extravagant family lifestyle.
“Those expenses included, among others, to maintain a multimillion-dollar home in Newport Beach, California, a condominium in Newport Beach, California, an apartment in France, a 2006 Bentley Flying Spur automobile purchased for over $150,000, other luxury automobiles, artwork, jewelry, home furnishings, an expensive wedding and salary for his son, schooling for his daughter in France, high-end hotel rooms for family and friends, and other lavish expenditures,” the indictment states.
It said some of the money was used for junkets to Hawaii, France, China, South America and Europe.
The indictment alleges that several of Hoover’s victims were recently widowed.
“Some of these widows provided J. Hoover with the bulk of their estates following the deaths of their husbands,” the indictment stated. “The widows relied on J. Hoover’s long-term friendship with their families and experience as an attorney to make sound investments.”
The indictment alleges that the Hoovers perpetrated fraud by declaring bankruptcy once investment funds were exhausted. The 12 charges include wire fraud, bank fraud, bankruptcy fraud, conspiracy and concealment of assets.
