Real Estate Developer Charged with Wire Fraud
Federal prosecutors charged a San Diego real estate developer with one count of wire fraud on Tuesday after he allegedly misappropriated more than $400,000 that investors had paid to develop land near Lakeview Regional Medical Center in Covington. Mark A. Hofmann, 55, is accused of siphoning money to pay off personal expenses and debts instead of pouring the money into the project. Prosecutors also say Hofmann is guilty of falsifying bank statements to hide his unauthorized use of the funds.
Hofmann convinced Bolivar Investors Group to buy and develop the land in 2009 according to the bill of information. Hofmann and an associate opened a bank account into which Bolivar made six payments between January 2009 and July 2009. According to records in a civil lawsuit filed against Hofmann and Newtrac Companies LLC, the associate appears to be Timothy Monahan.
Hofmann is said to have withdrew funds from the account at least 24 times despite not having authorization to use the money for personal expenses.
The managing partner at Bolivar, Emerson Loga, said that the project cost the group a significant portion of its holdings. Bolivar Group has since been able to sell about half of the property.
If Mark Hofmann is found guilty, he could face a maximum sentence of 20 years in prison and fines up to $250,000.