Former Sunwest Management CEO Jon Harder may no longer be behind bars, but he is not out of legal trouble.
A judge on Monday ruled that Harder must repay $79.5 million to investors he defrauded over a decade ago. Harder was charged with 56 counts of fraud in 2012, tied to his role in defrauding investors in senior living facilities out of at least $120 million between 2006 and 2008.
At its peak, Sunwest was one of the largest assisted living operators in the U.S., with over 300 communities serving 15,000 residents.
Over 1,000 investors were affectedin the scheme – many of them losing their life savings – in the largest fraud prosecution in Oregon history.
Harder pleaded guilty to fraud and money laundering charges and was sentenced to 15 years in prison, but his sentence was commuted by former president Donald Trump in one of Trump’s final official acts as president.
Even though Harder’s sentence was commuted, U.S. District Court Judge Michael Simon, in his ruling, noted that the other aspects of his sentence were “left intact and in effect,” The Oregonian reports.
At the time of Harder’s sentencing, government prosecutors never provided figures necessary to determine the amount of restitution. In April, prosecutors filed a motion asking Simon to impose a restitution order, totaling $79,499,677.
Harder’s attorneys argued that he was denied due process by prosecutors imposing a restitution requirement so long after he was sentenced.
Sunwest underwent a restructuring after Harder stepped down in 2009. A private equity group bought most of the provider’s holdings, and investors eventually recouped some of their money. Sunwest ceased operations in 2010.
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