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Witnesses in Preetorius trial tell of lost money, lost trust

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Regina Preetorius repeatedly assured people who did business with her that they had nothing to lose. They would discover they lost everything they entrusted to Pree­torius, her alleged victims said in court Tuesday in Augusta.

Preetorius has pleaded not guilty to federal charges of wire and mail fraud and money laundering.

Arthur Kent told the court that he went over investment materials from a seminar carefully before contacting Preetorius at SDA & Associates to invest the $50,000 he had saved for retirement.

“I read it a dozen times. It seemed real,” he testified.

His first quarterly investment check arrived on time, but the next two were late. Then instead of checks he received form letters from Pree­torius that sought to reassure investors. In the last letter, in April 2008, Preetorius wrote that investors had nothing to gain by hiring lawyers because she had no money left.

Kent, now 74, had to take a part-time job.

On cross-examination, Kent said he had lost money in the stock market before but that no stock had been bought with the personal guarantee of safety.

Charles Currington also caught a seminar in 2004 and invested $98,000, the settlement money he received after he was injured on his job as a high voltage lineman and left disabled. He lost it all to Preetorius, he said.

Both Kent and Currington testified that their money was supposed to be invested in specific properties that Pree­tor­ious would buy and “flip” for a profit or earn income on by installing renters. Each received recorded security deeds on the homes and promissory notes from Preetorius.

Preetorius’ former bookkeeper testified that investors’ money was used for businesses expenses and Preetorius’ personal expenses such as groceries, pet bills and occasionally her $4,000 monthly mortgage payment.

Investors testified that they would never have invested with SDA if they had known how the money was really used.

Chief Warrant Officer Andrew Sumpter said that after he and his wife divorced and were set for deployment to war zones, he signed over their Breeze Hill Drive home to Pree­torius. He gave Pree­tor­ius power of attorney to sell the home and transferred responsibility for the mortgage to her in January 2006.

A chance check of his credit score in December 2007 proved shocking. Sump­ter, expecting a perfect score, found it was 529.

“I was speechless when I saw that,” he said.

Sumpter discovered there was a mortgage on the home in his name and that several monthly payments were past due, he said. Though it wasn’t his loan and Preetorius presumingly had possession of the house, Sumpter paid off the past due amount and continued making monthly payments to try to stave off any blemish that could affect his top security clearance, he said.

He said he tried to get the situation cleared up with Pree­torius for a year. In June 2008, she told him she was declaring bankruptcy.

Sumpter never got the house back. Eventually he could no longer keep up the payments on that home, pay his own mortgage and support his family. The bank foreclosed on the loan.

The trial continues today in U.S. District Court in Augusta.

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Dixieman
14948
Points
Dixieman 09/18/13 - 10:31 am
2
1
People:

If anyone GUARANTEES you 12-18% per year return in a "safe" investment, run.
Run as fast as you can away from them.
Ain't no such thing as a free lunch or as an investment like this.
Remember, if it sounds too good to be true, it is.

Marinerman1
4856
Points
Marinerman1 09/18/13 - 03:43 pm
1
0
Yeah, BUT

The fact Regina used A DIME of the investment funds to pay her OWN 4000 mortgage, proves she is a crook. I would say that she should be turned into a slave to all of her investors, but there are too many of them to go around. There has to be a stash somewhere. There is a special place in Hell, for someone that would steal money, to point that a 74 year-old man now has to work part-time, just to survive. Everybody loses on this one. She does not need to be in jail -- she needs to be off her butt, and working for restitution.

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