Arizona couple, son plead in golf course fraud case

KINGMAN, Ariz. — Three family members tied to a golf course investment property in northwest Arizona who enjoyed a lavish lifestyle through fraudulent activity have entered plea agreements in federal court in Phoenix, according to court records associated with the indictments and plea deals.

At the center of the scheme was John Keith Hoover, an attorney involved in real estate development and property management ventures, who conceded that he raised in excess of $20 million from at least 500 investors over a period of roughly 15 years, according to the court records.

Many of the victims were women who provided him with the bulk of their estates after the deaths of their husbands, the records state.

"I improperly used some of the money for operational expenses for my various companies, primarily for the El Rio Country Club and Golf course located in Mohave Valley," Hoover said in his plea agreement.

Indictments allege that Hoover used investor money for personal expenses including a multimillion-dollar home and a condominium in Huntington Beach, Calif., an apartment in France, luxury automobiles, jewelry and trips to South America, France and Hawaii.

Hoover pleaded guilty to 10 counts of wire fraud in the agreement entered in U.S. District Court in Phoenix on Monday. Hoover, his wife, Deborah, and their son John Brandon Hoover each pleaded guilty to single counts of bankruptcy fraud. Their ages weren't immediately known.

The defendants agreed that they deliberately understated assets in a bankruptcy filing four years ago.

"We did not truthfully disclose all of our assets and financial transactions as required," Deborah Hoover said in her agreement. "I accept responsibility for my role in making false representations before the bankruptcy court so that we could retain as many assets as possible."

John Hoover Sr. faces up to 150 months in prison while his wife could get up to 24 months. Sentencing is deferred for Hoover Jr. who faces pretrial services supervision and is required to complete a business ethics course.

Judge Susan R. Bolton can order Hoover to pay up to $30 million in restitution while possible restitution is capped at $5 million each for his wife and son.