Phoenix, AZ- The federal government has submitted a new total they say Frank Ruiz owes for his part in de-frauding AEA Federal Credit Union.
Ruiz was scheduled to be sentenced on March 12 but U.S. District Judge Susan Bolton disagreed with the governments recommendation of more than $900,000 in total loss by the defendant. A figure they now have substantially increased.
They have now revised the amount to $4.75 million, stating it falls within the parties stipulated range in the Plea Agreement. However, they are still recommending Ruiz be sentenced to only 12 months in prison followed by 3 years of supervised probation due to his cooperation in this case.
The governments memorandum filed Thursday, breaks down 9 loans which add up to more than $4 million. The loans include a house that was bought on Parkway, which was then sold to William and Rhonda Liddle, another house that would be used to house bands that came to play at the Kress, the purchase of a limo, a Mercedes for his son, Polaris Golf Carts, along with equipment for the Kress, an additional property that was bought next door to the Kress building that was never developed, as well as Tuscan Ranch, undeveloped land, that was later sold to Todd Burch.
Also calculated into the loss is $720,000 what they term as Unjust Enrichment. This includes San Diego Charger season tickets, a wedding reception for Emma Almendarez, Yuma Country Club membership, profits made from a couple properties sold, and cash given to the Liddle's.
In addition, the government also factored in what they're calling questionable loans. They include Desert Best Distributing, the Kress building, and the Yuma Fun Factory among others stating no loss should be used from these loans.
You can read more in detail of the losses in the documents linked to this story.
Ruiz will be sentenced now on April 9.
He plead guilty to conspiracy and transactional money laundering in June of 2011, admitting to a multi-million dollar kickback scheme with the Liddle's.
In December 2010, Ruiz and the Liddle's were indicted on 68 counts which included conspiracy, fraud, and money laundering against AEA FCU.
Ruiz was one of the key witnesses who testified against the Liddle's in their trial which concluded last month.
Rhonda was found guilty on 36 of the 54 counts. Her husband William, who is the former Vice President of Business Lending for AEA FCU, was found guilty on all counts.
They're scheduled to be sentenced May 21.
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