AZ businessman bought homes, cars with investors' millions - WSFA.com Montgomery Alabama news.

AZ businessman bought homes, cars with investors' millions

Posted: Updated:
BULLHEAD CITY, AZ (CBS5) -

A Bullhead City businessman is accused of unlawfully using millions of dollars from lenders in Arizona and California for his personal expenses for more than a decade.

John Keith Hoover disguised purchases as business expenses and bought a multi-million-dollar home and a condo in Newport Beach, CA, an apartment in Paris, France, a 2006 Bentley Flying Spur vehicle worth $150,000, other luxury vehicles, art work, jewelry and home furnishings, according to the indictment.

John Keith Hoover also unlawfully shared his investors' money with his family - giving his son, John Brandon Hoover an expensive wedding and a high salary, sending his daughter to an expensive school in Paris, trips and high-end hotel rooms for family and friends and other "lavish" expenditures, the report said. 

John Keith Hoover and his wife, Deborah Boice Hoover allegedly committed bank fraud by misrepresenting information to lenders on employment, salary, assets, liabilities and the source of down payments.

The couple also borrowed money from banks and credit unions using false claims on loan applications and personal financial statements to get more money.

John Keith Hoover is also accused of recruiting family members as borrowers for loans.

Authorities believe the scheme had been going on since at least 1997.

Once John Keith Hoover had used all the investor money, he filed for bankruptcy protection and along with his wife and son, committed bankruptcy fraud by concealing from the bankruptcy court his home furnishings, real and personal property, recent transactions and control of other assets. 

On Jan. 14, 2011, John Keith Hoover filed for bankruptcy, stating under oath that their net worth was zero.

On June 30, 2007, he claimed on a financial statement that the value of his personal assets was $93,058,101.

John Keith Hoover, his wife and son were indicted on 52 charges.

Stay with cbs5az.com and CBS 5 News for updates on this story.

Copyright 2014 CBS 5 (KPHO Broadcasting Corporation). All rights reserved.

Powered by WorldNow