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FOR IMMEDIATE RELEASE |
March 13, 2008
INDICTMENT: FAMILY, FRIENDS IN KANSAS WERE VICTIMS OF CALIFORNIA MAN’S $1.8 MILLION FRAUD
WICHITA, KAN. – A California man was arrested Wednesday on federal charges of swindling his family and friends in Kansas.
David E. Burkholder, 54, San Francisco, Calif., was indicted Feb. 6 in U.S. District Court in Wichita with 24 counts of wire fraud.
According to the indictment:
– In 2002, Burkholder fraudulently told his parents in Kansas that he needed money to settle a personal injury claim against him as a result of a car accident, and to pay legal expenses associated with forming a new business. He said he would repay the money within a few weeks.
– As a result, his parents loaned him approximately $950,000.
– In July 2003, instead of repaying the money, Burkholder convinced his parents to solicit additional money from family members, which he said was a loan and would be repaid within a few weeks. As a result, other family members loaned him an additional $926,142.
– In the fall of 2003, Burkholder asked his parents to solicit more money from friends of the family. Again, he claimed to need the money to settle a personal injury claim and to set up a new business. In addition, he falsely claimed he needed to make a payment to Barbara Streisand as part of a contract with the singer and actress.
As a result, from October 2003 through April 2005 Burkholder received 24 wire transfers from his parents ranging in amount from $1,000 to $80,000 each.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The Federal Bureau of Investigation worked on the case. Assistant U.S. Attorney Alan Metzger is prosecuting.
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