Dade Developer Convicted Of Fraud Pleads For Leniency; Dobson Says "What Started Out As A Dream Became My Worst Nightmare"

Monday, April 28, 2014

A developer of The Preserve in Dade County is pleading for leniency on his fraud conviction, saying "what started out as a dream has become my worst nightmare."

Attorney Jerry Summers is asking Federal Judge Curtis Collier to sentence Josh Dobson to between 51-63 months. But prosecutors are asking for a much longer sentence.

The sentencing hearing for Dobson and Paul Gott begins Tuesday morning. It is expected to be lengthy with the defense filing 28 pages of objections to the pre-sentence report.

The initial pre-sentence report put total losses to investors at the Lookout Mountain property near Rising Fawn, Ga. at over $20 million. That has been revised to over $13 million, but prosecutors still maintain the actual loss was over $20 million to seven banks and a number of individuals.

Prosecutors said many investors were told they would get lots without having to pay a down payment or make any payments for up to three years. However, they were later told they were on the hook for the property, which was valued at far less than the selling price.

A jury a year ago found Dobson and Gott guilty on seven of 12 fraud counts. They were found guilty on seven identical counts and not guilty on five other identical counts.

Prosecutors Nancy Stallard Harr and Perry Piper wrote in a 40-page memorandum, "If it was Dobson’s dream to fleece unsuspecting banks and borrowers out of millions of dollars, he succeeded. His nightmare, if it be such, has only occurred because his fraudulent scheme was ultimately discovered by federal agents and he was found guilty by a jury of his peers. Dobson states that it is 'up to this Court though to determine how long until Dobson can put this nightmare behind him.' The government agrees. The Court should impose a significant sentence in order to promote respect for the law, provide just punishment, and adequately deter others who obtain through deceptive schemes money which is entrusted for good."

The prosecutors said, "The factors set forth in 18 U.S.C. § 3553(a) call for a sentence of considerable significance in this case. The nature and characteristics of the offense weigh heavily in favor of a lengthy term of incarceration.

"A lengthy sentence is necessary to deter the educated, the responsible, the intelligent, the thoughtful, and the calculated person. By imposing a substantial sentence in this case, this Court can let it be known that other developers and real estate professionals who defraud banks and purchasers will be held responsible. Much of our business infrastructure and tax code is designed to encourage development, and further, to accommodate those who want to borrow money to buy property." 

Prosecutors said Dobson should get more time for not accepting responsibility, for having a leadership role and for allegedly committing perjury in testifying at his trial.

The defense is objecting to a request that the amount of restitution be set at $13,747,770.16.

Defense attorneys are arguing that Dobson and Gott should go free while the case is under appeal. Prosecutors say they should go into custody as soon as they are sentenced.  

The Preserve ultimately wound up in bankruptcy, and much of the scenic land at Johnson's Crook has gone to a conservation group.


Latest Hamilton County Jail Booking Report

Here is the latest jail booking report from Hamilton County: ACUFF, DEBORAH LYNN  3334 E. 34TH ST CHATTANOOGA, 37407  Age at Arrest: 55 years old Arresting Agency:  INDECENT EXPOSURE --- ARNOLD, KENNETH ROGER  3711 CLIO AVENUE CHATTANOOGA, 37407  Age at Arrest: 52 years old Arresting Agency: Hamilton County Booked for Previous Charges ... (click for more)

Councilman Banks Asks Bradley Schools To Dismiss Liquor-By-The-Drink Lawsuit; Fivas Hits The Ground Running

The courts have twice ruled in favor of the city of Cleveland regarding taxes generated by the sale of liquor-by-the-drink, Councilman Richard Banks noted at the Cleveland City Council meeting Monday afternoon. Therefore, he made a motion to ask the new Bradley County School Board to dismiss its lawsuit against Cleveland. That board has been seeking to be paid a large portion of ... (click for more)

Of Course Gangs Are A Public Nuisance

Now, I don't know it all.  Beginning with my parents, folks of all sorts have been actively pointing out my ignorance for more than seven decades now.  So I'm well aware that I don't know it all.  In recent months I've begun to develop an appreciation for the local work of Mr. Neal Pinkston; I've been impressed with several things he's been doing in his official ... (click for more)

Roy Exum: Arnold Palmer’s Greatness

This is hardly meant to be flippant but I’d be willing to bet I’ve been in the presence of more great people than anyone you know. I’ve never ranked them, or ever dared to wonder who was the greatest, such as Muhammad Ali or Elvis Presley, but there are two traits that those who reach the highest pinnacle have in common. First, not a one of them was any good at what made them famous ... (click for more)

Vols' Dobbs, Barnett Grab SEC Player of Week Honors

BIRMINGHAM, Ala. – Tennessee quarterback Joshua Dobbs is the SEC Offensive Player of the Week and end Derek Barnett the SEC Co-Defensive Player of the Week. This week's honor marks the first time this season that a Vol has earned SEC Offensive Player of the Week. Dobbs was the last UT player to win the award in Week 6 of 2015 following his performance in the Vols' ... (click for more)

Craine, Ribeiro Named SoCon Players Of The Week

Two University of Tennessee at Chattanooga football student-athletes were named Southern Conference Players of the Week, following the Mocs' 41-21 win over Samford on Saturday.  Seniors Derrick Craine and Henrique Ribeiro both earned recognition from the league office announced today. Craine rushed for a career-high 222 yards on 23 carries with two touchdowns in the win. ... (click for more)