Pahrump developer arrested, charged in alleged Ponzi scheme

State investigators Thursday arrested a bankrupt Pahrump developer who left hundreds of investors, many of them seniors, without their life savings three years ago in what authorities are calling a massive Ponzi scheme.

Hans Seibt, 70, who was booked into the Clark County Detention Center on no bail, faces 31 felony charges -- six counts of theft and 25 counts of securities fraud -- in a criminal complaint filed by the Nevada attorney general's office.

He has an initial appearance in Las Vegas Justice Court on Monday.

The arrest was the result of an investigation launched by the securities division of the secretary of state's office in November 2008, roughly two months after Seibt and several of his companies filed for bankruptcy, reporting $70 million in debts. The filings occurred during a downturn in the real estate market

In a news release, the secretary of state's office said late Thursday that Seibt's Ponzi scheme victimized investors in Nevada and several other states.

"I can't stress enough the importance of every investor conducting the most thorough due diligence possible when making an investment," Secretary of State Ross Miller said.

Attorney General Catherine Cortez Masto said Seibt's "targeting" of senior citizens was "particularly egregious."

One of his investors, Luis Rojas, a 71-year-old retired waiter who lost $55,000, said Seibt's arrest has been a long time coming.

"This is good news," Rojas said. "He deserves it. He destroyed a lot of lives."

Seibt's troubles with the law are likely to escalate in the near future.

Las Vegas FBI spokesman Patrick Turner confirmed Thursday that the FBI is still investigating him.

Turner would not comment further, but sources said the investigation is focusing on mail and wire fraud charges and may be headed to a federal grand jury.

In September, attorney Lenard Schwartzer, the trustee in Seibt's bankruptcy cases, told the Las Vegas Review-Journal that the outlook was "pretty bleak" for Seibt's investors to recover their money.

Schwartzer said Seibt did not appear to be living a wealthy lifestyle. The developer contended early in the bankruptcy proceedings that he had lost money on his Pahrump properties.

But several investors said they thought that Seibt, a dual U.S.-German citizen, had hidden assets. And they said they were incensed that he was spotted driving a BMW around town and eating at fancy restaurants. Schwartzer said Thursday that his office has been working closely for months with both the FBI and the secretary of state.

"I'm glad to see that all the time we spent cooperating has resulted in a criminal prosecution because we were unable to recover any substantial amounts of assets to repay the victims of this Ponzi scheme," he said.

At Schwartzer's request, a bankruptcy judge has refused to discharge Seibt's mammoth debts, taking away his bankruptcy protection and giving his un­happy investors an opportunity to sue him in court for their money.

The complaint alleges Seibt used two of his companies, HSLV Development Corporation and Clark and Nye County Development Corporation, to solicit investments of $10,000 or more. He offered trust deeds, joint venture agreements and subscription agreements, all of which were supposed to be secured by parcels of land Seibt was holding in Nye County. The value of the land, however, was grossly exaggerated by Seibt, investigators said.

Seibt told investors that they would receive a return of 10 to 12 percent on their investments, but that ended up being a lie, the complaint charged. Instead of purchasing the land with the investment money, Seibt used the cash for his own personal expenses and to pay off other investors.

Seibt is accused of using a 17-acre luxury RV park he had developed in Pahrump to lure investors into other projects. He also left his investors with the impression that his development companies were turning a profit, when in fact they weren't.

Seibt continued accepting money from investors up to the day he consulted bankruptcy attorneys three years ago.

Contact Jeff German at jgerman@reviewjournal.com or 702-380-8135.