Virginia Man Is Sentenced For Stealing From HOAs
Saturday, February 7, 2009
A 39-year-old Herndon man who admitted stealing $3 million from area homeowners associations was sentenced yesterday in federal court to 5 1/2 years in prison.
Jeffrey S. Koger, 39, agreed to make restitution of almost $1.25 million to the associations and pay more than $775,000 in unpaid taxes to the IRS for his unreported income.
But Koger faces more charges and potentially far more prison time this month when Fairfax County prosecutors try him for attempted capital murder of a Virginia state trooper and the malicious wounding of several men during a bizarre chase and shootout with police in the Springfield area last year. Alexandria city prosecutors also might prosecute him for shooting a cabdriver numerous times on the night of the chase. No one died in any of the shootings, in which Koger was also wounded.
When the shootings occurred Feb. 2, 2008, Koger was being investigated for stealing from Koger Management Group of Fairfax, of which he was the chief financial officer. The company collected dues and helped manage 400 homeowners associations in Northern Virginia with 70,000 members. Koger pleaded guilty in November to stealing from his family's company and failing to pay taxes on his legitimate, as well as his stolen, income between 2003 and 2007.
Koger's attorney, Peter D. Greenspun, said that his client suffered from bipolar disorder and that two experts had determined that Koger was mentally ill. U.S. District Judge Leonie Brinkema agreed that Koger clearly suffered from psychiatric issues, "but that doesn't mean you get a pass" on any criminal conduct.
Koger used more than $730,000 of the homeowners money to open a restaurant called Jordan's 8 in Washington. He spent an additional $475,000 to remodel his home in Herndon, build a health club in Annandale, purchase a Chevrolet Corvette and buy a house in New Mexico. Greenspun said Koger also treated his friends to lavish gambling junkets in Las Vegas.
After Koger's arrest, the family's management business declared bankruptcy, and numerous employees lost their jobs, said Assistant U.S. Attorney Caryn D. Mark. She said one employee had repeatedly notified the company of Koger's thefts and resigned because she felt she would be condoning the practice if she continued to work for the company.
Mark noted that Koger's case prompted the General Assembly last year to pass laws increasing oversight of companies that manage finances for homeowners associations, of which there are more than 4,000 in the state.
"I just wanted to apologize again to my family," Koger said in his first public statement, "and to the Koger Management clients and to the court for my actions. I take full responsibility for everything I've done. If there's a silver lining, it's that I hope I get the help I need."
Koger added: "I want to get back out and work and repay everything I owe. That's my hope."
Brinkema sentenced him to 5 1/2 years for the embezzlement from the company and five years for the tax fraud, ordering the terms to run concurrently. She also ordered him to make restitution and IRS payments totaling more than $2 million.
As part of the sentence, Koger will be sent to a federal medical center where he can receive psychiatric and substance abuse treatment. In the three years after his release, he will not be allowed to conduct a financial transaction of more than $1,000 without permission from his probation officer.
Koger's trial in Fairfax is set for Feb. 17. Greenspun said his client faces a minimum of 23 years in prison on gun charges alone if convicted. Alexandria prosecutors have not charged Koger in the shooting of the cabdriver.