Former executives of beleaguered Meridian real estate company DBSI, Inc., pleaded not guilty May 20 to federal allegations the company misled investors, the Associated Press reports.
64-year-old Mark Ellison, 35-year-old David Swenson and 40-year-old Jeremy Snow Swenson pleaded not guilty May 20 to charges including wire fraud and conspiracy to commit securities fraud, according to U.S. Attorney for the District of Idaho Wendy Olson. DBSI founder and president Douglas Swenson pleaded guilty last month.
Federal prosecutors said that beginning in 2007 and continuing through November 2008, the executives claimed that the company had a net worth in excess of $105 million, while they were well aware that DBSI's business activities were "universally unprofitable." The indictment alleges that the conspiracy continued until DBSI filed for bankruptcy in November 2008.
DBSI's top officials were indicted on numerous counts in April, punishable by up to hundreds of thousands of dollars in fines and multiple years in federal prison.
DBSI managed a number of commercial properties, including the Plantation Shopping Center, Northgate Shopping Center and Broadway Plaza, all in Boise.