Opinion ID: 766939
Heading Depth: 4
Heading Rank: 2

Heading: Reddie Point (Counts 78-84)

Text: 18 The second fraudulent scheme involved Neder's false invoices supporting the construction draw requests for his Reddie Point development project. Neder obtained a consolidated, $14 million, acquisition and development loan for this project from the United Brotherhood of Carpenters and Joiners of America (the Union). The terms of the loan agreement required Neder to submit draw requests for reimbursement of amounts expended on construction work actually performed at Reddie Point. Advances for future work were not permitted. 19 From September 1987 through March 1988, Neder submitted seven construction draw requests. Each draw request was based in large part on invoices falsely representing that certain work had been completed at Reddie Point. In reality, Neder had not paid for this work, or the work was not actually performed at Reddie Point. Furthermore, Neder submitted some invoices with more than one draw request. Based on the draw requests, the Union wired Neder over $5 million. Among other things, Neder used these funds to make loan payments for and pay for the development of his other projects. Of the $5 million Neder received, only about $1,650,000 actually related to work done at Reddie Point. Neder admits that he submitted the false invoices but claims that the Union authorized him to do so. Paul Adler and Stanley Burns, who negotiated with Neder and administered this loan for the Union, denied authorizing Neder to submit false invoices. 20