ALEXANDRIA, Va. (AP) - Two Maryland men have been sentenced in a conspiracy to steal $9 million from a Vienna-based company's employee pension plan through a series of bad mortgage loans.
Forty-four-year-old Robert Fulton Rood IV of Potomac, Md. was sentenced to 10 years in prison. Thirty-one-year-old Nikolaos Hepler of Gaithersburg, Md. was sentenced to 30 months. Federal prosecutors announced the sentences on Friday.
Prosecutors say Rood led a scheme to defraud Southern Management Corporation Retirement Trust, which funds pensions for the Southern Management Corp., a prominent property management firm in the Mid-Atlantic region with 1,200 employees. Rood brokered a series of 32 mortgage loans which he sold to the retirement trust in 2006 and 2007. All but eight loans went into default.
Authorities say Hepler, Rood's employee, misrepresented information about the loans.