The former top officer of an area commercial real estate investment firm that allegedly stole $132 million from customers pleaded guilty to charges in federal court today.
Lara Coleman, 40, of the now bankrupt Investment Properties of America, could be sentenced to up to 25 years in prison and $500,000 in fines, but would serve 10 years if her plea agreement is approved by U.S. District Judge Robert E. Payne.
Edward Hugh Okun, 58, of Miami, the sole owner of IPA and The 1031 Tax Group LLP, is facing a three-week trial starting March 2.
Last year he and Coleman, IPA's chief operating officer, were charged in a 27-count indictment alleging among other things mail and wire fraud and money laundering. Authorities said last year there were 577 victims across the country.
According to court documents, in 2005, Okun bought a $4.1 million home in Miami, and paid $8.6 million for a 131-foot yacht. Okun, then 54, spent $200,000 for his Dec. 10, 2005 wedding to current wife, Simone Bolani, then 27. The government has asked the court for permission to introduce parts of a video made at the wedding in effort to show his "lavish lifestyle." Okun's lawyers oppose the request.
Payne asked Coleman today how she wished to plead to charges of conspiracy to commit mail and wire fraud and lying to investigators. Coleman twice quietly said, "guilty, your honor."
Coleman will be sentenced May 1, along with Robert D. Field II, the chief financial officer for Okun Holdings, Inc., the parent company of Okun's businesses; and Richard B. Simring, the Okun Holdings chief legal officer.
Plea agreements call for the three to cooperate with authorities and to testify in court if required, presumably against Okun who has been in custody pending trial.
Investment-property owners can deposit proceeds from the sale of property with qualified intermediaries and sign exchange agreements, which include various promises by the qualified intermediaries to clients regarding the safekeeping and use of exchange funds.
The indictment alleges that 1031TG obtained funds by promising clients that their money would be used solely for 1031 exchanges.
Instead, Okun is charged with misappropriating $132 million in client funds to pay for Okun's lavish lifestyle, invest in commercial real estate and purchase additional qualified intermediary companies to obtain access to additional client funds.
One of Okun's lawyers said last summer that Okun believed he always had enough money on hand to pay back the alleged victims. Contact Frank Green at (804) 649-6340 or fgreen@timesdispatch.com.
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