The former CEO of a chain of assisted living facilities surrendered after being indicted for allegedly swindling more than 1,000 people out of $130 million, some of which went to support his lavish lifestyle, according to the U.S. Attorney for the District of Oregon.
Jon Michael Harder, 47, of Oregon and North Dakota, was indicted on 56 counts of mail fraud, wire fraud, money laundering and other charges in connection with raising money to buy and operate Sunwest Management assisted living facilities in Oregon and elsewhere.
Harder allegedly told investors their money was going into assisted living facilities in their community when the money was actually being commingled with money from all investors for all of the money-losing facilities, said U.S. Attorney Amanda Marshall.
He represented Sunwest as a profit-making operation when it had been losing money since at least 2006, said the attorney. At the height of the operation, Sunwest Management and related companies operated by Harder managed 300 assisted living facilities serving more than 15,000 residents with an average age of 85.
Harder is accused of taking in millions of dollars from investors and banks to acquire new assisted living facilities. The money was actually used to pay off guaranteed returns to earlier investors and to support his lavish lifestyle.
Marshall described the scheme, which took place from 2006 through mid-2008, as a "massive fraud affecting over 1,000 investors from around the country." The indictment was unsealed and Harder surrendered to authorities on Thursday.
-Karen DeMasters