DBSI fraud case set to wrap up

April 3, 2014 

The defense is expected to rest on Friday, following nine weeks of testimony by prosecution and defense witnesses in federal court.

Jurors were given the day off Thursday as attorneys for both sides met with Chief District Judge B. Lynn Winmill to develop jury instructions to be given following closing arguments beginning at 8:30 a.m. Monday.

DBSI President Douglas Swenson, his sons Jeremy Swenson and David Swenson and company attorney Mark Ellison are accused of conspiracy, fraud and money laundering. They are charged with a total of 89 counts.

DBSI, originally Diversified Business Services and Investments, was founded in 1979 in Meridian. The company sold ownership shares in shopping centers, office buildings, warehouses and other commercial properties. It then leased the properties from the owners, managed them and paid a guaranteed return of between 6 percent and 7 percent annually.

Prosecutors claim DBSI essentially operated a Ponzi scheme, paying earlier investors with money provided by more recent investors.

The defendants, who have denied the charges, say the company suffered financial losses in the 2008 financial meltdown. They say they did nothing illegal.

Idaho Statesman is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

Commenting FAQs | Terms of Service