Phoenix man and his son plead guilty in fraud casePosted: Updated:
TUCSON, Ariz. (AP) -- A man and his son accused of defrauding investors while operating a Phoenix real estate investment business have pleaded guilty.
Federal authorities say 66-year-old Larry Heartburg and 40-year old Rolf Heartburg are scheduled to be sentenced March 2 and must pay some restitution.
The two were indicted last year for bilking elderly investors out of about $257,000 and later indicted for wire and mail fraud.
Prosecutors say Rolf Heartburg pleaded guilty to conspiracy to commit wire and mail fraud while his father pleaded guilty to failing to file a tax return.
Authorities say the scheme ran from October 2009 to September 2012. It involved convincing investors to put money toward the purchase of mortgages on commercial real estate.
They say most of the funds went toward the Heartburgs' personal expenses.
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