Award in claim against Sawyer

Published 5:00 am Tuesday, August 6, 2013

A Bend physician won a judgment Monday in circuit court against Tami Sawyer, a former real estate broker now serving federal prison time for defrauding clients of millions.

The challenge now for Dr. David Redwine is collecting the $810,000 the court agrees he’s owed.

Redwine invested a little more than $1.15 million with Sawyer’s company, Starboard LLC, in what an accountant described in court as a Ponzi scheme.

Sawyer and her husband, former Bend Police Capt. Kevin Sawyer, pleaded guilty in January to crimes associated with defrauding more than 20 people of more than $4 million. Tami Sawyer is serving nine years at the Federal Corrections Facility in Dublin, Calif.

“Painful,” Redwine said outside of court. The process of regaining his money started in 2008. “This isn’t the end yet. It’s a ripple effect.”

Neither Sawyer nor her attorney Marc Blackman were present in court Monday. Blackman withdrew the defense against Redwine’s civil claim July 26. The court declined to delay the case any longer, according to Redwine’s lawyer, Michael McGean.

Redwine has received some restitution money from sources other than the Sawyers, which brought his claim down from the amount he originally invested, McGean said.

McGean called Stephen Greer, a certified public accountant, to testify as an expert in forensic accounting for business account transactions. After analysis, Greer determined Redwine’s money was used by Starboard LLC to pay other investors as well as fund a house in Mexico.

“On Aug. 1 (2005), money went to other investors,” Greer said. “That is a classic step of a Ponzi scheme. Investors got some money back, but not all.”

He cited examples of Sawyer writing checks from accounts in which few funds were available. She only gave the checks when Redwine’s money had been put into the account.

Greer told the court he believed the Sawyers operated a Ponzi scheme through Starboard LLC. The U.S. Securities and Exchange Commission defines a Ponzi scheme as “an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors.” The scheme collapses when funds run dry because no new investors join the scheme. Existing investors then ask for money back, which is no longer in the company.

Redwine also asked for $100,000 in legal fees, which Circuit Judge Stephen Forte, who decided the case, declined.

“I understand your desire given the circumstances to have attorney fees covered,” he said. “I just don’t think there is any authority.”

McGean agreed, and the case settled on $809,913.23.

Sawyer pleaded guilty to 21 counts a day before her federal trial started on Jan. 15, 2013. Kevin Sawyer is also serving 27 months in federal prison.

McGean said the case is focusing on how to collect the amount owed to Redwine, and evaluating the best way to enforce collections.

“I’m not sure how we’re going to do that yet,” he said.

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