“Guinn engaged in a constant pattern of financing and refinancing first and second trust deeds at an ever increasing debt level,\u201d it states. “The primary purpose of virtually all of the Loans was to repay prior deeds of trust to carry out Guinn’s scheme, fund unpaid accrued interest on other loans, fund additional ‘capitalized’ interest reserve, pay fees and closing costs.<\/p>\n
\n\u201cGuinn often authorized cash out to borrowers, all of which was never disclosed to Plaintiffs before investing in the subject loans and in violation of the loan agreements. Plaintiffs were never informed of the real purpose of the loans.”<\/strong><\/p>\n<\/blockquote>\nDennis Prince, Ruthe\u2019s lawyer, in an opening statement that lasted two hours, argued that Aspen was a \u201ccomplex scheme to defraud\u201d and that Guinn \u201cfailed to exercise safe and sound business judgment,\u201d according to the Las Vegas Review-Journal, which attended the opening hearing this week.<\/p>\n
Guinn \u201cexploited\u201d investors\u2019 trust and confidence,\u201d Prince continued, while living an extravagant lifestyle, constantly refinancing loans as part of \u201ca Ponzi scheme.\u201d<\/p>\n
Catastrophic Decline<\/b><\/h2>\n
According to his defense counsel Joseph Liebman, Jeff Guinn had \u201cbelieved in the loans, and he had no idea that they, or the economy in general, would eventually falter.\u201d He also denied that Aspen had been a Ponzi scheme at all; the loans\u2019 collateral had a \u201ccatastrophic decline\u201d in value during the Vegas property crash.<\/p>\n
Chuck Ruthe, meanwhile, was \u201cobviously aware he was getting into a potentially risky venture,\u201d claimed Leibman.<\/p>\n
Ruthe died in 2014 after a long battle with Parkinson\u2019s disease. As an original stakeholder in Boyd Gaming, he helped build the company from the ground up with his friend and business partner, Bill Boyd. He retired as president in 1997.<\/p>\n
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Jeff Guinn, son of the late Nevada governor Kenny Guinn, is accused of running a Ponzi scheme that allegedly defrauded investors out of millions. Among those who fell victim to the alleged scam include Donna Ruthe, the wife of the former president of casino operator Boyd Gaming Corp and Chuck Ruthe, who died in 2013, […]<\/p>\n","protected":false},"author":42,"featured_media":40495,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21,10,61],"tags":[],"acf":[],"yoast_head":"\n
Jeff Guinn, Son of Former Nevada Governor, Accused of Defrauding Late Boyd Gaming President<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n