The founder of The Westhaven Group received a 10-year prison sentence in court Tuesday. His son, Scot Ulmer, received a sentence of 4 years.
Westhaven executives Roger Morr and Anthony Garzony, who pleaded "no contest" last month to 20 felonies received 4 years in prison and 5 years of probation, respectively.
Prosecutors say the men deceived investors while buying and selling homes in Toledo through land contract deals.
This story appeared on WTOL.com in May 2008.
TOLEDO -- The heads of a now defunct investment firm could end up behind bars. Four people connected to the Westhaven Group are being accused of criminal activity.
The indictment includes 81 counts of alleged criminal activity by John Ulmer, his son Scot Ulmer as well as former company executives Roger Morr and Anthony Garzony.
The accusations are connected to Westhaven Group operations between 2003 and 2005.
Charges include the sale of unregistered securities, false representation and false statements in the sale of securities, and failure to disclose insolvency of the company.
Lucas County Assistant Prosecutor Kevin Pituch says, "At least concerning ones mentioned in the indictment, they were not exempt from registration. There were also, as alleged in the indictment, misrepresentations or falsehoods that were used to sell those or have people invest with Westhaven."
Over the last 10 years, members of the Lagrange Village council have been voicing their concerns about the Westhaven Group and others, selling homes to low-income Toledoans under land contract deals.
Beth Lewandowski of the Lagrange Village Council tells News 11, "Not only does it lower the value of the housing stock in the neighborhood, it had such an impact upon residents themselves. Their self-esteem and ability to further purchase a home." They're applauding a new city law requiring homes to be insepcted before they're sold under land contract.
Terry Glazer of United North says, "In the future, when someone gets a land contract house, that house will be liveable. So they won't be ending up in a house without a furnace or hot water."
Speaking of legal hot water, the four accused will soon have to appear in Lucas County Common Pleas court.