A man who lied about being a Navy SEAL and put different false data on mortgage paperwork in an try to begin a horse enterprise in Lexington has been sentenced to jail time for fraud.
Christopher “Rusty” Custer was sentenced to a few years and 5 months in jail and ordered to pay $578,014 in restitution for one cost of financial institution fraud, which he pleaded responsible to in October 2022 as a part of a deal.
Custer initially confronted 4 fees, together with two counts of financial institution fraud and two counts of wire fraud. The indictment mentioned Custer “falsely purported” to be a Navy SEAL in 2018 when he utilized for a mortgage from Conventional Financial institution to purchase a house and land in Lexington for an equine enterprise.
In response to courtroom paperwork, Custer informed banks and one other sufferer in monetary statements he had a web value in extra of $6 million and $9 million.
Custer allegedly misrepresented his “funds, character and private historical past” in paperwork he gave the financial institution in Could 2018 and August 2019, the indictment mentioned. He additionally was charged with sending false details about his monetary standing by electronic mail to an investor in November 2019 to get a mortgage for an oil and gasoline pipeline inspection enterprise.
State information present an individual with the identical identify arrange a enterprise referred to as Moon Dance Farm in Lexington in February 2018. It was dissolved in October 2019 for not submitting an annual report.
Custer arrange one other enterprise referred to as Wildcat Discipline Providers LLC in October 2019. It was dissolved a 12 months later after not submitting an annual report, in response to state information.
Within the plea settlement, Custer agreed to forfeiting greater than $309,000, which he agreed was an correct sum of money he obtained by means of fraud.
Custer asks for ‘mercy’ in jail sentence
Initially, Custer confronted as much as 30 years in jail. After coming into a responsible plea, he then confronted a most of about 5 years in jail. His protection crew, led by Brandi Lewis of Baldani Regulation Group, argued in courtroom information that point was not crucial as a result of Custer was unlikely to re-offend and had a “restricted prison file.”
Lewis mentioned Custer’s household relies upon solely on him for funds, and requested the courtroom to let him proceed to work to supply for his household, in addition to pay again restitution owed to the victims. Custer was not eligible for probation.
“… On one hand, the fraud that Mr. Custer accepted accountability resulted in a considerable financial loss to the sufferer. Alternatively, there are a lot of mitigating components, resembling Mr. Custer’s employability, capability to earn a big earnings, and supporting a household,” Lewis wrote in a sentencing memo.
“Mr. Custer admits he made poor choices that landed him earlier than this Court docket, and he accepts that he should be punished. He’s merely asking this Honorable Court docket to contemplate the beforehand talked about components and style a sentence that can permit him to return to employment, earlier than later, with a purpose to repay the sufferer herein and help his household.”
In a letter to Chief Choose Danny Reeves, Custer tried to convey his “honest remorse” for not telling the banks the reality about his monetary circumstances.
He additionally requested “mercy” in figuring out his sentence, citing that he was the primary supplier for his household.
“My actions have had a big unfavourable affect on my spouse, daughter, and whole household. Each my mother-in-law and fogeys are superior in age, and I’m afraid of the toll this has taken on them,” he wrote.
Custer informed the decide he was dedicated to proudly owning as much as his errors and making amends to reimburse the financial institution for the cash he owes them – totaling greater than $527,000. He referenced his job with one of many “largest vitality firms on this planet,” Workrise Avery Tech Sources, and mentioned his work would supply substantial earnings for years if the courtroom would permit him to maintain working.
Prosecution: Not defendant’s first ‘white collar crime’
Of their argument for a harsher sentence than what Custer has requested for, federal prosecutors introduced up Custer’s present funds, saying he makes practically $15,000 a month. In addition they mentioned he lives in a $1.5 million dwelling, which he has made no makes an attempt to promote to reimburse the victims.
Prosecutors alleged that Custer lied on a monetary disclosure kind to his probation officer, purporting to make considerably much less cash, which wouldn’t have even coated the $9,100 mortgage funds he makes month-to-month.
“These omissions are materials as they deflate Custer’s monetary situation and his capability to pay a high-quality, whereas begging the query as to why Custer has refused to pay restitution at or earlier than the time of sentencing,” prosecutors mentioned in a sentencing memo. “He lives a lavish way of life, as a $9,100 mortgage fee on a ($1.5 million) dwelling demonstrates.
“This should be considered when the courtroom is fashioning a sentence in opposition to this defendant.”
Prosecutors mentioned it was “significantly egregious” Custer falsely portrayed himself as a Navy SEAL. They requested for a sentence of three years and 10 months.
“Buying and selling on the belief that might be afforded to him by those who respect a army background – particularly as a Navy Seal – and the character traits that background would appear to impart, Custer doctored his private historical past as he did his private wealth,” the sentencing memo mentioned.
U.S. Lawyer Carlton S. Shier IV and Assistant U.S. Lawyer Kathryn Dieruf represented the U.S. authorities within the case. They mentioned in courtroom information that this was not Custer’s first run-in with white collar crime, and requested the decide to make use of that in figuring out a sentence.
They allege that in 2004, Custer deliberately misappropriated the property of life insurance coverage by way of fraud, a cost that was dismissed after he accomplished a 60-day probation sentence.
Different fees of white collar crime have been dismissed in Louisiana, in response to courtroom paperwork. In 2014, Custer pleaded responsible to issuing nugatory checks, a felony cost, when he bought practically $1,500 value of meals from a barbecue restaurant with out paying any cash.
“Whereas incomes $15,000 monthly, with the capability for extra, Custer pays over $12,000 monthly to reside on property value hundreds of thousands of {dollars} and revel in luxurious items. Custer has ample incomes capability. He must be compelled to place these assets towards compensation of his victims, not his personal private satisfaction,” prosecutors wrote.
They urged restitution funds be made within the quantity of $5,000 month-to-month.
“Custer shouldn’t be permitted to commit himself to a lavish way of life on credit score after which declare the lack to compensate the sufferer of his crime as a result of his bills are too excessive,” the prosecution wrote.
Custer will probably be allowed to self-report to the Bureau of Prisons on April 6 at 2 p.m.
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