If you want to know the whole story, login to PACER and read the Pre-Sentencing Report and the AUSA’s Response. Figure the truth lies slightly closer to Gerry’s side than the AUSA (but, sadly, not by very much).

Based on the PSR and the Response, it seems like Mike Hughes, Ron Filipovic and, to a lesser extent, Gerry, would recruit someone to buy a house. The purchase price would be inflated and money would go back to Granite Pointe Equity Investments, either categorized as legal fees, real estate commissions, etc. He may have done legal work on the houses, I don’t know. But ultimately, the money made its way back to GPEI. The house would then be transferred to GPEI through a deed that wasn’t recorded (Dammit Jim! Who owns Blackacre now?), rented out and Gerry would manage the property. But of course, renters don’t care what you paid for the house. They are going to rent at the market level, which can’t support an overly inflated mortgage. So the money that was originally paid to GPEI would be used to pay whatever expenses the rent didn’t cover, basically paying the mortgage with the bank’s own money. Since that can’t go on forever, they planned to sell the house in a year or so when the price had risen (because real estate can only go up in price, right?) and split the profit with the investor. Except the market crashed, there was no way to sell at a profit, and they were left with a bunch of houses that they couldn’t make payments on because the rents didn’t cover the mortgage, and there was no money left. Which is about when Mike and Ron skipped town, leaving Gerry to try and deal with investors who were receiving notices about missed payments, foreclosure, and with renters who weren’t getting maintenance done (also because there was no money to do it). To his credit, he did what he could. To his shame, he knew what was going on long before that point. He knew investors were lying about using the homes as their own residence on the loan applications, because he was handling the rental properties. Loan officers or others might have falsified incomes, inflated account balances, and the like, but he knew what was going on, and he tried to pretend he didn’t know, because the money was good.

There is also an accusation in there that he spent $30k out of a client’s trust account, and that GPEI repaid it. God, I hope that isn’t true. I can give him the benefit of the doubt on a lot of things about GPEI, but dammit, he’s a lawyer. Just about the brightest line in the practice of law is the sanctity of the client’s trust account.

I like Gerry. I’m going to miss him. I hope his sentence can get shortened through good behavior, etc. I hope he returns to the practice of law. Somehow I doubt that will be in Nevada.

He will serve 85% of the sentence with good behavior; it can't be shortened. He will be released to a halfway house about 6 months prior to the end of the sentence. Then he will be on supervised release for 5 years which can be shortened after a year.

Amen. Zobrist is a good guy and I wish him well. He should never be mentioned in the same conversation as Levinson, a complete and total POS.

Had to use those season passes one last time I guess. I wonder If he rode the train where you get to sit in the Cage