Posted: Aug 20, 2013 4:09 PM by AP, PHOTO: MGN ONLINE
NEW ORLEANS (AP) - A San Diego real estate developer has been charged with misappropriating more than $400,000 that investors had paid for developing land near a Covington hospital.
The developer, Mark A. Hofmann, was charged Tuesday in federal court with one count of wire fraud.
Federal prosecutors say Bolivar Investors Group, a company organized by members of the Crescent River Port Pilots' Association, paid $3 million in 2009 as part of a deal with Hofmann to buy a five-acre parcel of land near Lakeview Regional Medical Center and build two office buildings on the property.
Hofmann allegedly used some of that money to pay for personal expenses and repay debts. Prosecutors say Hofmann and others falsified bank statements to hide his unauthorized use of the funds.