James C. Nistler was unanimously convicted of 17 counts by a Jackson County jury
Attorney General John Kroger today announced that a Medford-area developer and mortgage broker was sentenced to 19 months in prison after being convicted in a complex real estate Ponzi scheme to defraud investors.
James C. Nistler, who was a high-ranking U.S. Department of Housing and Urban Development official in the late 1980s, was unanimously convicted in November on 1 count of Racketeering, 8 counts of Securities Fraud and 8 counts of Aggravated Theft in the First Degree. The racketeering count included an additional 32 separate predicate crimes.
The Oregon Department of Justice prosecuted the case with the state Division of Finance and Corporate Securities.
"We are glad to see this defendant held accountable for his crimes. Mortgage fraud cannot be tolerated in Oregon," said Attorney General Kroger. "Thanks to the Division and Finance and Corporate Securities for their great work."
The racketeering scheme centered on Tennessee Acres, a proposed housing development in Medford. Nistler took in $1.2 million from investors to build houses, but actually spent less than $400,000 on the project. Nistler was unlicensed and the securities he sold were unregistered. About a dozen investors, mostly elderly, lost more than $800,000.
Consumers can obtain information about investments and salespeople by calling the Division of Finance and Corporate Securities at 866-814-9710 or visit www.dfcs.oregon.gov.
Nistler was prosecuted by Senior Assistant Attorney General Rachel Bridges of the Oregon Department of Justice and Jason Weber of the Division of Finance and Corporate Securities. Tippi Pearse from the Division of Finance and Corporate Securities DFCS assisted on the case. Jackson County District Attorney Mark Huddleston also assisted.
Attorney General John Kroger leads the Oregon Department of Justice. The Department's mission is to fight crime and fraud, protect the environment, improve child welfare, promote a positive business climate, and defend the rights of all Oregonians.
Tony Green, (503) 378-6002 firstname.lastname@example.org