United States v. Edward Showalter

I. Background

From 2003 to 2005, Showalter owned and operated High Park Investments (“High Park”). He raised capital to improve real property and then sell it for a profit. Showalter promised investors returns of 10% to 26%. As security for the invest- ments, he was supposed to record deeds of trust on the proper- ties in favor of investors who provided money for the improvements. The deeds of trust, however, often were not recorded, and if they were, the properties were over- encumbered.

Showalter raised more than $15 million from investors, but he diverted money he received for uses other than the prom- ised improvements to the properties. This included making other investments, paying High Park operating expenses, and using money for personal purposes.

The government filed an information against Showalter, charging him with one count of wire fraud in violation of Title 18 U.S.C. § 1343 for defrauding his investors. Pursuant to a plea agreement, Showalter pleaded guilty to that charge. Approximately seven months later, Showalter moved to with- draw his guilty plea on the basis of newly discov- ered/available evidence. The district court denied the motion. Showalter was…