1 00:00:00,240 --> 00:00:05,080 Home building giant Bill Erpenbeck promises he can put you in your dream 2 00:00:05,600 --> 00:00:11,780 We looked at every model home, and then when we found this one, of course, this 3 00:00:11,780 --> 00:00:12,780 is perfect. 4 00:00:13,060 --> 00:00:17,980 But when he diverts $34 million worth of mortgage payments into his company's 5 00:00:17,980 --> 00:00:20,680 bank account, the dreams become nightmares. 6 00:00:21,340 --> 00:00:27,340 When you bring it down to just its basics, it's just pure stupidity. It's 7 00:00:27,340 --> 00:00:31,600 debt. So when hundreds of homebuyers are left in danger of losing their homes, 8 00:00:31,860 --> 00:00:35,740 don't expect any of them to shed a tear for Bill Erpenbeck. 9 00:00:35,960 --> 00:00:39,860 I can't imagine the fear that all of them had. I realize that that's my 10 00:00:39,860 --> 00:00:40,860 responsibility. 11 00:00:57,480 --> 00:01:04,360 In October 2009, six FBI agents take shovels to this country club golf course 12 00:01:04,360 --> 00:01:06,320 a plush northern Kentucky suburb. 13 00:01:08,800 --> 00:01:13,700 46 paces off the third tee, they've been told, lies a buried treasure. 14 00:01:16,760 --> 00:01:20,820 It's about 46 paces. It's right in front of this tree. 15 00:01:21,830 --> 00:01:26,350 FBI Special Agent Kevin Gormley has just returned after being summoned to a 16 00:01:26,350 --> 00:01:30,910 federal prison in Coleman, Florida by renowned home builder and convicted scam 17 00:01:30,910 --> 00:01:32,830 artist Bill Erpenbeck. 18 00:01:33,170 --> 00:01:36,150 He's hoping to get a reduction in his prison sentence. 19 00:01:36,630 --> 00:01:40,390 Erpenbeck tells Gormley that he wants to come clean about money he had stashed 20 00:01:40,390 --> 00:01:45,370 away in 2002 while being investigated for a $34 million fraud. 21 00:01:46,350 --> 00:01:50,130 Bill said he wanted to be able to start his life over once he gets out of 22 00:01:50,130 --> 00:01:53,570 prison. At that time, he was thinking of only going to prison for a couple of 23 00:01:53,570 --> 00:01:54,570 years. 24 00:01:55,210 --> 00:01:59,890 Erpenbeck's story leads Gormley to the Summit Hills Country Club, where Gormley 25 00:01:59,890 --> 00:02:02,390 thinks pay dirt is just moments away. 26 00:02:03,110 --> 00:02:08,430 But after five hours of digging without success, it appears to some of Gormley's 27 00:02:08,430 --> 00:02:13,210 fellow agents that this fantastic story is just that, a fantasy. 28 00:02:13,990 --> 00:02:16,730 I was getting a lot of harassment as each hour passed. 29 00:02:17,470 --> 00:02:20,610 that we weren't going to find it, of course, but I was confident we weren't 30 00:02:20,610 --> 00:02:21,810 going to leave until we found it. 31 00:02:25,510 --> 00:02:30,150 Bill Erpenbeck's promise of buried treasure is all that's left after nearly 32 00:02:30,150 --> 00:02:31,930 decade of lies and theft. 33 00:02:33,410 --> 00:02:38,290 It's a scam that has sent seven people to prison and taken an estimated $69 34 00:02:38,290 --> 00:02:44,170 million from homebuyers, banks, and building contractors in Cincinnati and 35 00:02:44,170 --> 00:02:45,170 Kentucky. 36 00:02:47,600 --> 00:02:52,660 But as former golfing buddy and next -door neighbor Glenn Fagan attests, it 37 00:02:52,660 --> 00:02:53,780 didn't start that way. 38 00:02:54,700 --> 00:02:59,520 Bill Erpenbeck's fraud begins with an air of success. 39 00:03:01,740 --> 00:03:08,700 Bill Erpenbeck had a gift, and his gift was to persuade you that not only 40 00:03:08,700 --> 00:03:12,020 are you going to do business with him, but it's the best thing you've ever done 41 00:03:12,020 --> 00:03:13,020 in your life. 42 00:03:14,000 --> 00:03:18,680 The Erpenbeck family has been building trust along with homes for decades. 43 00:03:19,400 --> 00:03:24,700 Bill's grandfather was named 1965 Home Builder of the Year by the Home Builders 44 00:03:24,700 --> 00:03:26,400 Association of Northern Kentucky. 45 00:03:26,880 --> 00:03:32,600 And Bill's father, Tony, followed in the same footsteps, slowly amassing his own 46 00:03:32,600 --> 00:03:35,200 reputation one house at a time. 47 00:03:35,600 --> 00:03:39,320 You would expect Tony Erpenbeck not only to build your house, but maybe get on 48 00:03:39,320 --> 00:03:42,880 the bulldozer and grade the yard when he was finished. He's just the most... 49 00:03:43,080 --> 00:03:47,100 Down to earth, salt of the earth guy. We always used to joke that he's, you 50 00:03:47,100 --> 00:03:49,660 know, the millionaire that drives the, you know, Chevette. 51 00:03:50,040 --> 00:03:56,020 But Chevettes are far too modest for the grandson, Bill Erpenbeck. He has much 52 00:03:56,020 --> 00:03:57,020 bigger plans. 53 00:03:57,260 --> 00:04:04,120 I think he wanted to go from obscurity to the number one home builder 54 00:04:04,120 --> 00:04:05,160 in northern Kentucky. 55 00:04:06,320 --> 00:04:10,220 Bill Erpenbeck wants to bring the Erpenbeck name into the modern age. 56 00:04:10,990 --> 00:04:15,370 It's no longer going to be a family that builds one house at a time. The 57 00:04:15,370 --> 00:04:19,910 Erpenbeck Company begins building entire subdivisions and condominium projects. 58 00:04:20,950 --> 00:04:23,210 And with a great deal of success. 59 00:04:27,750 --> 00:04:31,950 By 2002, the Erpenbeck Company has built hundreds of homes. 60 00:04:32,670 --> 00:04:36,270 And it's raking in nearly $100 million a year. 61 00:04:38,060 --> 00:04:44,360 And as a marked contrast from his father's frugality, Bill Erpenbeck now 62 00:04:44,360 --> 00:04:49,020 million -dollar house and a fancy car. It presents the image that the Erpenbeck 63 00:04:49,020 --> 00:04:51,140 company is on top of the world. 64 00:04:53,120 --> 00:04:58,120 He was the third largest builder in greater Cincinnati at the time. He came 65 00:04:58,120 --> 00:05:02,060 recommended by a lot of people in the community, including my employer. 66 00:05:02,880 --> 00:05:06,660 Linda Harlow buys an Erpenbeck home in October of 2000. 67 00:05:07,530 --> 00:05:12,030 and quickly befriends one of her neighbors across the street, who happens 68 00:05:12,030 --> 00:05:13,730 an Urban Beck Company employee. 69 00:05:16,950 --> 00:05:22,410 One evening in April of 2002, however, that neighbor wants to have a talk. 70 00:05:23,610 --> 00:05:28,830 She asked if she could come to my house that evening and speak with me, and I 71 00:05:28,830 --> 00:05:33,530 said, well, of course you can. You come across the street every evening to talk 72 00:05:33,530 --> 00:05:36,010 to me, and she said, no, this is more serious. 73 00:05:37,719 --> 00:05:42,800 Harlow's friend has inside information about shady dealings going on within the 74 00:05:42,800 --> 00:05:47,620 Erpenbeck company and feels obligated to tell Harlow that there's a problem with 75 00:05:47,620 --> 00:05:48,599 her house. 76 00:05:48,600 --> 00:05:54,060 She proceeded to tell me that my house had multiple mortgages on it. And I 77 00:05:54,140 --> 00:06:00,540 why would that be the case? I had already paid for my house. I had a 78 00:06:00,540 --> 00:06:05,840 paid and my lender delivered the payment for my house. 79 00:06:06,380 --> 00:06:10,920 When Harlow takes out a mortgage to buy her home, she expects her mortgage 80 00:06:10,920 --> 00:06:15,220 company to ensure that a check from the closing is delivered to Erpenbeck's 81 00:06:15,220 --> 00:06:20,640 lender. The check is intended to pay off the entire mortgage Erpenbeck took out 82 00:06:20,640 --> 00:06:22,220 to build the home in the first place. 83 00:06:23,560 --> 00:06:26,000 Unfortunately, that's not what happens. 84 00:06:26,300 --> 00:06:29,840 Thanks to Erpenbeck's closing agent, Michelle Marksberry. 85 00:06:30,410 --> 00:06:34,950 Michelle Marksbury at our closing asked if she could carry the check over to the 86 00:06:34,950 --> 00:06:38,970 construction lender because it would save one day of interest. 87 00:06:39,370 --> 00:06:44,410 It seems like a reasonable request at the time. But looking back to that day, 88 00:06:44,570 --> 00:06:47,090 Harlow remembers something suspicious. 89 00:06:47,830 --> 00:06:51,570 It was Halloween, October 31st, 2000. 90 00:06:51,910 --> 00:06:56,790 And I recall Michelle saying that as soon as she left the closing, she needed 91 00:06:56,790 --> 00:06:58,810 hurry home and dress her daughter. 92 00:06:59,530 --> 00:07:05,010 for trick -or -treat. And then she caught herself and said, I mean, as soon 93 00:07:05,010 --> 00:07:07,390 go and deliver this check to the bank. 94 00:07:08,190 --> 00:07:10,550 It's a revealing slip of the tongue. 95 00:07:11,210 --> 00:07:14,790 Marks Perry has no intention of delivering the check to the construction 96 00:07:14,790 --> 00:07:16,890 to pay off Erpenbeck's original mortgage. 97 00:07:17,330 --> 00:07:20,930 She's putting it straight into the Erpenbeck company checking account. 98 00:07:23,730 --> 00:07:28,910 And with Erpenbeck's mortgage still open, it means that Harlow's house now 99 00:07:29,180 --> 00:07:32,700 two mortgages on it, hers and Bill Erpenbeck's. 100 00:07:33,540 --> 00:07:39,360 For Harlow, the situation is appalling. She could dutifully pay her mortgage for 101 00:07:39,360 --> 00:07:44,340 30 years and still face the threat of Erpenbeck's lender taking her home. 102 00:07:44,780 --> 00:07:51,520 They would be able to foreclose even though I had bought and paid for my 103 00:07:51,520 --> 00:07:52,520 and had been living there. 104 00:07:53,300 --> 00:07:58,070 But for Erpenbeck... Walking out of the closing with a check not payable to him 105 00:07:58,070 --> 00:07:59,370 is the easy part. 106 00:07:59,750 --> 00:08:05,330 For the scam to actually pay off, Erpenbeck needs to be able to deposit 107 00:08:05,650 --> 00:08:08,890 Harlow asks her friend the obvious question. 108 00:08:09,250 --> 00:08:15,270 If I can't deposit a check that isn't payable to me, why would Erpenbeck be 109 00:08:15,270 --> 00:08:20,390 to take a check away from a closing table, payable to another bank, and 110 00:08:20,390 --> 00:08:22,050 that to their own bank account? 111 00:08:22,480 --> 00:08:25,440 And she said, the bank isn't just the bank, the bank is people. 112 00:08:25,660 --> 00:08:30,280 Look for a reason that the people in authority at the bank would allow that 113 00:08:30,280 --> 00:08:31,280 happen. 114 00:08:31,640 --> 00:08:36,059 For homebuyers like Linda Harlow, who bought her home from the Erpenbeck 115 00:08:36,059 --> 00:08:41,200 in the fall of 2000, it means that Erpenbeck's original mortgage hasn't 116 00:08:41,200 --> 00:08:45,180 paid off, and his lender still has a lien on her home. 117 00:08:45,840 --> 00:08:47,480 And Harlow isn't alone. 118 00:08:48,280 --> 00:08:53,780 As the FBI and U .S. Attorney's Office later find out, Erpenbeck has pulled 119 00:08:53,780 --> 00:08:59,840 scam more than 250 times over the previous three years for $34 million. 120 00:09:01,120 --> 00:09:04,100 And homebuyers aren't the only ones left in the dark. 121 00:09:04,700 --> 00:09:08,840 Erpenbeck manages to keep his lenders from asking questions as well. 122 00:09:09,140 --> 00:09:13,280 And the effort included continuing to pay interest to the construction lenders 123 00:09:13,280 --> 00:09:17,960 on the loans so that they would be less likely to become aware that they should 124 00:09:17,960 --> 00:09:19,400 have been paid out of the closings. 125 00:09:20,010 --> 00:09:24,410 With Erpenbeck still making monthly payments, his lenders don't know the 126 00:09:24,410 --> 00:09:28,250 properties have been sold and simply keep the mortgages active. 127 00:09:29,510 --> 00:09:35,090 For Erpenbeck to benefit from the scam, he needs help depositing checks not made 128 00:09:35,090 --> 00:09:36,090 out to him. 129 00:09:36,430 --> 00:09:38,990 And he knows just the place to find it. 130 00:09:39,250 --> 00:09:44,770 The evidence developed by the FBI was that John Finnan, who was the president 131 00:09:44,770 --> 00:09:47,890 People's Bank of Northern Kentucky, and Mark Manning, its vice president, 132 00:09:48,590 --> 00:09:54,330 colluded with Bill Erpenbeck to accept those deposits into the Erpenbeck 133 00:09:54,330 --> 00:09:55,330 at the bank. 134 00:09:57,050 --> 00:10:02,330 Erpenbeck has held his company's bank account at People's Bank for years, long 135 00:10:02,330 --> 00:10:06,910 enough, in fact, that his relationship with the bankers extends beyond that of 136 00:10:06,910 --> 00:10:08,570 typical banker and client. 137 00:10:09,730 --> 00:10:11,470 One of the bankers lived on our street. 138 00:10:12,030 --> 00:10:16,610 We golfed together every Sunday. I thought John Fennin and Bill Erpenbeck 139 00:10:16,610 --> 00:10:18,050 as good as friends as Bill and I were. 140 00:10:18,570 --> 00:10:22,330 But being in tight with Bill Erpenbeck is playing with fire. 141 00:10:23,870 --> 00:10:29,550 In February 2001, they are confronted with the fact that Erpenbeck's account 142 00:10:29,550 --> 00:10:32,670 their bank is overdrawn by $6 million. 143 00:10:33,730 --> 00:10:37,590 It's a surprising revelation from a company that is one of the largest home 144 00:10:37,590 --> 00:10:38,630 builders in the region. 145 00:10:39,070 --> 00:10:42,930 Until that is, you look into Bill Erpenbeck's lifestyle. 146 00:10:43,850 --> 00:10:46,070 As things started progressing, 147 00:10:47,310 --> 00:10:54,110 Bill's appetite for the limelight got bigger and his appetite for the finer 148 00:10:54,110 --> 00:10:55,250 things in life got bigger. 149 00:10:56,530 --> 00:11:01,550 He had a couple motorcycles, two golf carts, one was a Mercedes golf cart. 150 00:11:01,890 --> 00:11:06,750 The golf carts had televisions on them. There was probably double digits in 151 00:11:06,750 --> 00:11:07,930 televisions in that home. 152 00:11:08,210 --> 00:11:10,570 He had the built -in movie theater with... 153 00:11:11,119 --> 00:11:15,800 20 Barca loungers that were tiered up and a racing center for those cars that 154 00:11:15,800 --> 00:11:17,020 you would race against each other. 155 00:11:17,460 --> 00:11:19,280 There wasn't much you couldn't do down in that basement. 156 00:11:19,560 --> 00:11:23,780 And then that all led out to the pool that, you know, honestly, at the time, 157 00:11:23,780 --> 00:11:27,800 pool was probably one of the nicest pools I've ever seen. I mean, it had a 158 00:11:28,020 --> 00:11:30,220 I mean, people had a pool with a cave in their backyard. 159 00:11:32,420 --> 00:11:37,540 By 2001, the money coming in can't keep up with the money going out. 160 00:11:38,300 --> 00:11:39,980 But Urban Beck has a plan. 161 00:11:40,570 --> 00:11:46,210 As former Kentucky Post reporter Bob Driehaus explains, Erpenbeck persuades 162 00:11:46,210 --> 00:11:51,050 two good friends, John Finnan and Mark Menne, to have People's Bank lend him 163 00:11:51,050 --> 00:11:53,590 $6 million he's overdrawn on his account. 164 00:11:54,310 --> 00:11:58,430 It was another great sales job. He said, hey, look, we've got a lot of homes 165 00:11:58,430 --> 00:11:59,430 coming online. 166 00:11:59,670 --> 00:12:04,510 We're just in a cash crunch at the moment, and I just need you to cover me 167 00:12:04,510 --> 00:12:06,890 these millions of dollars in overdrafts. 168 00:12:07,240 --> 00:12:11,280 Fennin and many sneak around the board of directors at People's Bank to give 169 00:12:11,280 --> 00:12:12,460 Erpenbeck the money. 170 00:12:12,820 --> 00:12:16,780 But in no time, they find themselves sliding down a slippery slope. 171 00:12:17,600 --> 00:12:22,700 Assistant U .S. Attorney E .J. Walburn later prosecutes Fennin and many for 172 00:12:22,700 --> 00:12:24,540 their participation in the fraud. 173 00:12:24,960 --> 00:12:28,260 I think that probably they panic more and more. 174 00:12:28,480 --> 00:12:33,160 We're into him six million. What do we do? The only way we're ever going to get 175 00:12:33,160 --> 00:12:35,280 out of this hole is to get him more money. 176 00:12:35,720 --> 00:12:42,520 It's how $6 million problems turn into $34 million frauds, and it grows from 177 00:12:42,520 --> 00:12:43,520 there. 178 00:12:43,600 --> 00:12:48,540 Fennin and many reach out to other Kentucky banks and illegally mislead 179 00:12:48,540 --> 00:12:51,680 into lending Erpenbeck another $29 million. 180 00:12:52,480 --> 00:12:57,940 They were representing that the Erpenbeck company was healthy when, in 181 00:12:57,940 --> 00:12:58,940 was a bottomless pit. 182 00:12:59,740 --> 00:13:02,740 Then there's the most destructive act. 183 00:13:03,440 --> 00:13:08,400 Their bank allows Erpenbeck to take nearly 200 checks that aren't made out 184 00:13:08,400 --> 00:13:13,260 him. And instead of using them to pay off his construction mortgages, he 185 00:13:13,260 --> 00:13:18,100 deposits them into his own bank account, leaving hundreds of homebuyers in the 186 00:13:18,100 --> 00:13:23,020 same situation as Linda Harlow, facing the threat of losing their homes. 187 00:13:24,600 --> 00:13:29,900 John and Mark are both honorable men. And I still believe that to this day, I 188 00:13:29,900 --> 00:13:32,840 think what happened is that you have John and Mark. 189 00:13:33,230 --> 00:13:35,310 trying to make this thing go. 190 00:13:35,510 --> 00:13:40,530 And maybe it'll turn itself around and everybody will be made whole and we'll 191 00:13:40,530 --> 00:13:45,490 move forward. But the company was spiraling out of control. 192 00:13:46,270 --> 00:13:52,130 So out of control, in fact, that by April of 2002, the stolen deposits and 193 00:13:52,130 --> 00:13:55,990 -gotten loans have ballooned into a $69 million fraud. 194 00:13:58,370 --> 00:13:59,930 When American Greed returns. 195 00:14:01,040 --> 00:14:06,480 If his banker friends are hoping for a turnaround, Bill Erpenbeck may be a lost 196 00:14:06,480 --> 00:14:11,520 cause. You start looking back going, well, yeah, the guy was vacationing 20 197 00:14:11,520 --> 00:14:15,300 weeks out of the year. You know, the guy was at the bar every night drinking. 198 00:14:15,440 --> 00:14:18,400 You know, who was running this empire if he was doing all this? 199 00:14:20,420 --> 00:14:26,540 In the spring of 2002, home building giant Bill Erpenbeck is the mastermind 200 00:14:26,540 --> 00:14:28,060 $69 million fraud. 201 00:14:28,920 --> 00:14:31,820 being perpetrated in Cincinnati and Kentucky. 202 00:14:33,160 --> 00:14:39,280 Among the victims are more than 250 homebuyers, more than 40 title 203 00:14:39,420 --> 00:14:40,780 and 40 banks. 204 00:14:42,140 --> 00:14:47,900 But remarkably, despite siphoning $69 million of other people's money into his 205 00:14:47,900 --> 00:14:51,600 bank account, Erpenbeck can't keep the company afloat. 206 00:14:52,750 --> 00:14:57,370 The bricklayers, electricians, and carpenters who build the houses start to 207 00:14:57,370 --> 00:15:00,550 notice the company's cash flow problems in 2001. 208 00:15:01,410 --> 00:15:06,950 And the urban bank companies were first slow to pay their subcontractors and 209 00:15:06,950 --> 00:15:09,310 then just stopped paying them. 210 00:15:10,370 --> 00:15:15,410 And when they start going after homebuyers to collect what they're owed, 211 00:15:15,410 --> 00:15:16,890 fraud breaks wide open. 212 00:15:18,540 --> 00:15:22,660 Charles and Sherry Mitchell buy their three -bedroom Urban Beck home in 213 00:15:22,660 --> 00:15:24,980 Independence, Kentucky in 2001. 214 00:15:25,920 --> 00:15:32,080 We went to every builder, looked at every model home. We went to all the 215 00:15:32,080 --> 00:15:37,420 fests. And then when we found this one, of course, this is perfect. 216 00:15:39,080 --> 00:15:43,980 But just months after moving in, the Mitchells receive the world's worst 217 00:15:43,980 --> 00:15:45,220 housewarming gift. 218 00:15:45,880 --> 00:15:50,220 Two liens filed against their home by frustrated subcontractors. 219 00:15:51,160 --> 00:15:55,420 It seems they were hired but never paid by Bill Urbanbeck. 220 00:15:56,140 --> 00:16:02,580 One of the liens is for only $100, but the other is for more than $22 ,000. 221 00:16:03,880 --> 00:16:08,960 I thought it was a joke, and I told him, oh, that can't happen. I didn't believe 222 00:16:08,960 --> 00:16:12,940 it, but we found out it was, you know, true. 223 00:16:13,690 --> 00:16:16,010 For the Mitchells, the situation is dire. 224 00:16:16,210 --> 00:16:21,410 With liens filed against their home, it could be foreclosed upon through no 225 00:16:21,410 --> 00:16:22,410 fault of their own. 226 00:16:23,130 --> 00:16:25,070 It's an unthinkable result. 227 00:16:25,670 --> 00:16:30,650 All the money that we had, we put in to just getting in this house. 228 00:16:30,870 --> 00:16:33,870 We were spent out. 229 00:16:34,850 --> 00:16:39,070 Charles Mitchell calls Bill Erpenbeck personally to resolve the liens. 230 00:16:39,630 --> 00:16:44,730 I called him, and I talked to him briefly over the phone, and he said it 231 00:16:44,730 --> 00:16:48,610 big mistake. He apologized and all that, and he's going to make it right. 232 00:16:49,510 --> 00:16:52,950 Erpenbeck does, in fact, pay off the liens. 233 00:16:53,230 --> 00:16:57,710 But the Mitchells soon realized that those are only the first cracks of the 234 00:16:57,710 --> 00:16:58,710 foundation. 235 00:17:00,710 --> 00:17:05,030 Like hundreds of other homebuyers, the Mitchells discover Erpenbeck never paid 236 00:17:05,030 --> 00:17:06,230 off his original loan. 237 00:17:06,680 --> 00:17:09,400 and that they could again lose their brand -new house. 238 00:17:09,960 --> 00:17:11,300 We went through hatred. 239 00:17:11,520 --> 00:17:15,040 We went through, we were kind of hysterical. We were scared. 240 00:17:15,440 --> 00:17:18,220 We were outraged. We were all these things. 241 00:17:19,140 --> 00:17:22,720 The Mitchells hire attorney Brandon Volker to take up their case. 242 00:17:23,200 --> 00:17:30,060 This was the actual statement of mechanics and material men's lien that 243 00:17:30,060 --> 00:17:35,780 the Mitchells received, and ironically, it was over $100. 244 00:17:36,640 --> 00:17:41,440 Little did they know at the time that it was substantially more money at issue 245 00:17:41,440 --> 00:17:43,400 with their house other than this $100. 246 00:17:44,920 --> 00:17:51,520 When you bring it down to just its basics, it's just pure stupidity. It's 247 00:17:51,520 --> 00:17:56,260 theft. It's as simple as some person walking into a store. 248 00:17:56,990 --> 00:18:01,310 and shoplifting and just walking out with the item, you know, not even trying 249 00:18:01,310 --> 00:18:05,450 hide it, just carrying it out triumphantly. I just shoplifted from 250 00:18:05,450 --> 00:18:07,270 essentially what was going on with Erfenbeck. 251 00:18:08,450 --> 00:18:13,030 Volker begins a class action lawsuit in the Mitchell's name, but he doesn't go 252 00:18:13,030 --> 00:18:18,230 after Erfenbeck. He sues People's Bank for allowing Erfenbeck to divert checks 253 00:18:18,230 --> 00:18:21,590 not payable to him into his company's bank account. 254 00:18:22,430 --> 00:18:25,230 As Volker contacts title agencies and banks. 255 00:18:25,850 --> 00:18:30,670 Word of the fraud cascades throughout the home building industry, and 256 00:18:30,670 --> 00:18:33,550 knows the fraud is coming to an end. 257 00:18:34,150 --> 00:18:41,050 Four banks and a title company had discovered what Bill Erpenbeck was 258 00:18:41,050 --> 00:18:45,530 doing, confronted him about it, and perhaps he decided that it was in his 259 00:18:45,530 --> 00:18:48,630 interest to come forth to the government before the government approached him. 260 00:18:48,930 --> 00:18:51,350 When American Greed Returns. 261 00:18:52,970 --> 00:18:58,110 Bill Erpenbeck tries to get ahead of the fraud's investigation, and he does it 262 00:18:58,110 --> 00:19:00,330 in disgracefully dramatic fashion. 263 00:19:00,690 --> 00:19:04,010 It just seemed like it was out of a mob movie almost. 264 00:19:04,230 --> 00:19:11,090 Father and son pressuring the daughter into admitting to crimes that she... 265 00:19:11,090 --> 00:19:17,150 In the early spring of 2002, Bill Erpenbeck is spiraling deeper into a $69 266 00:19:17,150 --> 00:19:18,410 million fraud. 267 00:19:19,590 --> 00:19:24,650 He's been diverting checks from homebuyers into his company's bank 268 00:19:24,650 --> 00:19:29,030 are meant to pay off his construction loans, leaving hundreds of homebuyers 269 00:19:29,030 --> 00:19:33,710 holding the bag for his debt and facing the possibility of losing their homes. 270 00:19:35,970 --> 00:19:38,990 But the outside world is catching up to him. 271 00:19:39,290 --> 00:19:43,010 It was about to be discovered because there was just too many people 272 00:19:43,010 --> 00:19:46,830 him, too many people said he didn't have the money and time to pay all these 273 00:19:46,830 --> 00:19:47,830 people off. 274 00:19:48,910 --> 00:19:55,810 On March 22, 2002, Erpenbeck decides to come clean to the government, or his 275 00:19:55,810 --> 00:19:57,430 version of clean, anyway. 276 00:19:58,650 --> 00:20:02,910 Bill Erpenbeck isn't the type of captain to go down with a ship. 277 00:20:03,230 --> 00:20:07,490 In a conference room at the U .S. Attorney's Office in Cincinnati, he 278 00:20:07,490 --> 00:20:12,250 Assistant U .S. Attorney Kathleen Brinkman and FBI Special Agent Kevin 279 00:20:12,250 --> 00:20:16,670 that the fraud was started without his knowledge by the company accountant. 280 00:20:17,610 --> 00:20:19,790 Laurie Erpenbeck, his sister. 281 00:20:21,030 --> 00:20:22,490 It's a dramatic performance. 282 00:20:24,530 --> 00:20:31,490 He cried a little bit, and he tried to put it off on his sister that she had a 283 00:20:31,490 --> 00:20:35,490 rough life. Poor Laurie, you know, she just, I think she just wanted the help. 284 00:20:36,490 --> 00:20:41,870 Laurie Erpenbeck does, in fact, have a hand in the fraud, but is hardly its 285 00:20:41,870 --> 00:20:42,870 mastermind. 286 00:20:43,500 --> 00:20:48,120 Her role in the fraud was primarily depositing the checks. 287 00:20:48,700 --> 00:20:50,920 But she can't handle the deceit. 288 00:20:51,280 --> 00:20:56,660 Months before Bill Erpenbeck goes to the FBI, Lori Erpenbeck leaves the company. 289 00:20:57,040 --> 00:20:58,840 She didn't want to be involved with it anymore. 290 00:20:59,280 --> 00:21:03,240 She was feeling more and more pressure to do things she didn't want to do. 291 00:21:04,360 --> 00:21:09,860 Nevertheless, Bill Erpenbeck determines that Lori needs to take the fall for the 292 00:21:09,860 --> 00:21:10,860 family. 293 00:21:13,150 --> 00:21:20,130 The only girl in the family. And pretty much we determined it was 294 00:21:20,130 --> 00:21:23,050 treated like dirt for most of her life. 295 00:21:23,290 --> 00:21:28,650 The family dynamic is evident in this publicity photo of the Erpenbeck 296 00:21:28,810 --> 00:21:31,870 It's the father, Tony, and three of his sons. 297 00:21:32,330 --> 00:21:35,070 Lori is conspicuously absent. 298 00:21:37,150 --> 00:21:39,910 As the government digs deeper into the fraud. 299 00:21:40,540 --> 00:21:46,620 Bill Erpenbeck's story seems hollow, and it becomes clear that Laurie is simply 300 00:21:46,620 --> 00:21:47,620 a scapegoat. 301 00:21:48,100 --> 00:21:51,980 It became apparent to us in looking at the documents and talking to the other 302 00:21:51,980 --> 00:21:56,620 witnesses that Bill Erpenbeck was involved in the scheme from the 303 00:21:56,620 --> 00:21:58,860 was a leader of the scheme. 304 00:21:59,600 --> 00:22:04,020 But Erpenbeck is determined to squirm his way out of the vice. 305 00:22:04,960 --> 00:22:08,720 He recruited bankers John Fennin and Mark Manning into the fraud. 306 00:22:09,320 --> 00:22:13,940 If blaming his sister doesn't work, maybe turning in the bankers will. 307 00:22:15,280 --> 00:22:19,060 Well, Bill was working at that point in time. He was trying to mitigate his 308 00:22:19,060 --> 00:22:21,980 circumstances. So Bill was out to save Bill. 309 00:22:22,460 --> 00:22:26,660 He turns over recordings of phone conversations with Fennin and many that 310 00:22:26,660 --> 00:22:31,020 clearly implicate that the bankers know about the fraud and that what they are 311 00:22:31,020 --> 00:22:32,140 doing is wrong. 312 00:22:45,480 --> 00:22:49,640 It appears that ratting out the bankers might just work. 313 00:22:50,160 --> 00:22:54,380 He makes a deal with the government. He pleads guilty to one count of bank 314 00:22:54,380 --> 00:22:58,860 fraud. And in exchange for his cooperation, the government will pursue 315 00:22:58,860 --> 00:23:01,280 sentence much less than the 30 -year maximum. 316 00:23:01,840 --> 00:23:06,560 Based on his assistance, making the tapes with Finnan and many, telling us 317 00:23:06,560 --> 00:23:09,900 involvement of other people, it likely would have brought him down to 10 years. 318 00:23:10,730 --> 00:23:16,290 But Bill Erpenbeck isn't one to accept a first offer. He has more tricks up his 319 00:23:16,290 --> 00:23:21,430 sleeve. Bill, in typical Bill Erpenbeck fashion, figured I can manipulate the 320 00:23:21,430 --> 00:23:26,430 system. And once again, his sister Lori is the sacrificial lamb. 321 00:23:27,950 --> 00:23:32,330 Days before she is scheduled to testify at Bill's sentencing hearing in February 322 00:23:32,330 --> 00:23:33,410 of 2004, 323 00:23:34,250 --> 00:23:38,250 Kathleen Brinkman gets some shocking news from Lori's attorney. 324 00:23:38,790 --> 00:23:45,020 He said, Her father is putting pressure on her to lie at this upcoming hearing 325 00:23:45,020 --> 00:23:47,060 related to the sentencing of Bill. 326 00:23:47,260 --> 00:23:52,440 The elder Erpenbeck is asking her to take the stand and the blame. 327 00:23:53,520 --> 00:23:56,080 But Lori has finally had enough. 328 00:23:56,620 --> 00:24:01,580 She agrees to wear a wire and two nights later meet with her father. 329 00:24:02,940 --> 00:24:08,940 As they drive through the streets of Covington, Kentucky, five FBI vehicles 330 00:24:08,940 --> 00:24:12,310 follow. listening to the conversation on a transmitter. 331 00:24:13,130 --> 00:24:14,130 It was rainy. 332 00:24:14,530 --> 00:24:19,470 It was just difficult to follow them. We'd hoped they would stay in the area. 333 00:24:19,690 --> 00:24:20,770 Fortunately, they did. 334 00:24:22,370 --> 00:24:27,110 Tony drives Lori to the Marriott Courtyard in Covington, where the stakes 335 00:24:27,110 --> 00:24:32,510 raised. On the top level of the parking garage, Bill Erpenbeck is waiting. 336 00:24:33,310 --> 00:24:37,570 When Bill got in the car, it was just the tag team. They're asking for her to 337 00:24:37,570 --> 00:24:38,570 take the fall. 338 00:24:38,680 --> 00:24:42,420 to say it's happened on her watch, that she caused it. 339 00:24:43,960 --> 00:24:49,320 Quite frankly, from an investigative standpoint, I don't think we could have 340 00:24:49,320 --> 00:24:50,620 written a better script ourselves. 341 00:24:50,920 --> 00:24:54,400 It was just directing her to do nothing but lie. 342 00:24:55,580 --> 00:24:59,480 Tony told Lori that we need you to step up for the family. 343 00:24:59,860 --> 00:25:03,680 Bill can't go to jail. He has three children that need him. 344 00:25:04,340 --> 00:25:05,700 And, you know, you're single. 345 00:25:07,680 --> 00:25:09,720 more or less throwing Lori under the bus. 346 00:25:10,140 --> 00:25:11,260 It was very sad. 347 00:25:13,720 --> 00:25:18,920 Finally, the FBI determines they've heard enough, and five cars swoop in and 348 00:25:18,920 --> 00:25:20,520 encircle the scene of the crime. 349 00:25:21,300 --> 00:25:27,880 And I'll never forget, when I arrested Bill and went up to him, he got out and 350 00:25:27,880 --> 00:25:30,440 he started crying. He says, I'm going away for 30 years. 351 00:25:32,880 --> 00:25:37,560 The next day, father and son are arraigned on obstruction of justice 352 00:25:38,160 --> 00:25:42,920 Two months later, they plead guilty, and any points Bill had won for cooperation 353 00:25:42,920 --> 00:25:44,920 are now long gone. 354 00:25:46,080 --> 00:25:49,820 Just as he predicted, he's sentenced to 30 years in prison. 355 00:25:50,440 --> 00:25:55,800 Tony Erpenbeck is sentenced to six years, but it isn't the last we'll hear 356 00:25:55,800 --> 00:25:57,220 Bill Erpenbeck's father. 357 00:25:59,660 --> 00:26:01,320 When American Greed returns. 358 00:26:02,270 --> 00:26:03,910 Tony Erpenbeck wants revenge. 359 00:26:04,370 --> 00:26:06,610 How far is he willing to go? 360 00:26:07,070 --> 00:26:13,630 He described in graphic detail what he wanted done. It was violent, 361 00:26:13,750 --> 00:26:15,610 violent death that he was calling for. 362 00:26:18,570 --> 00:26:24,130 In the summer of 2004, three members of the Erpenbeck family sit in prison for 363 00:26:24,130 --> 00:26:28,130 their roles in a $69 million fraud and its aftermath. 364 00:26:29,310 --> 00:26:34,230 The mastermind, Bill Erpenbeck, is guilty of bank fraud and obstruction of 365 00:26:34,230 --> 00:26:37,430 justice and is sentenced to 30 years in prison. 366 00:26:39,210 --> 00:26:44,750 Lori Erpenbeck, his sister, pleads guilty for her smaller role in the fraud 367 00:26:44,750 --> 00:26:46,250 is sentenced to one year. 368 00:26:47,370 --> 00:26:52,770 And their father, Tony Erpenbeck, is sentenced by Judge Arthur Spiegel to six 369 00:26:52,770 --> 00:26:54,830 years for obstruction of justice. 370 00:26:55,520 --> 00:26:59,880 after being recorded trying to convince Laurie to take the blame for the fraud 371 00:26:59,880 --> 00:27:01,720 in order to save Bill. 372 00:27:03,500 --> 00:27:05,100 Tony Lifton died for Bill. 373 00:27:05,340 --> 00:27:11,460 Bill was the all -star in that family, and he's the one that got the respect 374 00:27:11,460 --> 00:27:14,340 and the attention from the father. 375 00:27:15,360 --> 00:27:19,860 Sixty -nine -year -old Tony Erpenbeck once reigned over the mighty Erpenbeck 376 00:27:19,860 --> 00:27:20,940 home -building dynasty. 377 00:27:21,420 --> 00:27:22,600 But now... 378 00:27:22,800 --> 00:27:27,700 feeling that both his and his son Bill's lives are ruined, wants revenge. 379 00:27:29,360 --> 00:27:36,260 In December 2004, Tim Tracy, the FBI special agent who arrested Tony 380 00:27:36,260 --> 00:27:40,460 on the obstruction charges, received news that he'll never forget. 381 00:27:41,240 --> 00:27:47,540 After Tony was sentenced for his obstruction charge and he was 382 00:27:47,540 --> 00:27:50,740 the Lexington medical facility, he had made... 383 00:27:51,070 --> 00:27:56,370 comment to another inmate about killing Judge Spiegel, killing Kathy Brinkman, 384 00:27:56,450 --> 00:27:58,410 and kidnapping my children. 385 00:28:01,170 --> 00:28:05,710 The inmate, John Collins, alerts the authorities and agrees to record further 386 00:28:05,710 --> 00:28:07,470 conversations with Erpenbeck. 387 00:28:08,050 --> 00:28:11,650 Assistant U .S. Attorney Rob Duncan prosecutes the case. 388 00:28:12,030 --> 00:28:16,370 In the first recording, it's Mr. Erpenbeck speaking with Collins about... 389 00:28:17,840 --> 00:28:23,220 what he wants done, how he wants it done. The second conversation is more of 390 00:28:23,220 --> 00:28:29,440 same, but there's more detail. There seems to be a little bit more of a level 391 00:28:29,440 --> 00:28:30,460 specificity. 392 00:28:31,160 --> 00:28:36,800 In language too profane to repeat, Erpenbeck tells Collins he wants the 393 00:28:36,800 --> 00:28:42,460 of Attorney Brinkman and Judge Spiegel mutilated, with body parts cut or shot 394 00:28:42,460 --> 00:28:43,460 off. 395 00:28:43,920 --> 00:28:48,800 His plan for Special Agent Tracy's children is even more sadistic. 396 00:28:49,680 --> 00:28:55,420 He says he wants the 8 - and 12 -year -olds buried alive in caskets with a 397 00:28:55,420 --> 00:29:00,060 leading above ground for air and enough water and crackers to allow them to 398 00:29:00,060 --> 00:29:05,940 survive trapped and terrified underground for a full two weeks, simply 399 00:29:05,940 --> 00:29:06,940 torture of it. 400 00:29:07,920 --> 00:29:13,080 It's one thing to threaten me. I've had it happen a few times. 401 00:29:13,530 --> 00:29:15,730 I'm armed. I can take care of myself. 402 00:29:17,350 --> 00:29:19,510 To threaten a family, it's a different thing. 403 00:29:21,470 --> 00:29:26,310 The inmate, John Collins, leads Erpenbeck to believe that he is capable 404 00:29:26,310 --> 00:29:27,690 carrying out the threats. 405 00:29:27,990 --> 00:29:30,670 And Erpenbeck lets him know he's serious. 406 00:29:31,210 --> 00:29:37,590 I talked about price and $500 ,000 payment initially, 407 00:29:37,590 --> 00:29:41,750 and then an additional amount if it was... 408 00:29:42,120 --> 00:29:45,100 if it was carried out and completed. I think that is when Mr. Ruppenbach made 409 00:29:45,100 --> 00:29:47,080 the statement about if it takes a million, it takes a million. 410 00:29:47,580 --> 00:29:52,240 Knowing it will become public, Tracy decides that he needs to let his 411 00:29:52,240 --> 00:29:53,600 know about the threats. 412 00:29:54,400 --> 00:29:57,300 They were just amazed that someone could be that mean. 413 00:29:59,220 --> 00:30:05,140 But I didn't tell them everything, but it eventually was in the newspaper. My 414 00:30:05,140 --> 00:30:10,440 oldest child read it and was pretty upset. 415 00:30:11,040 --> 00:30:14,200 I mean, had he talked to somebody else other than Mr. Collins, who knows what 416 00:30:14,200 --> 00:30:15,200 would have happened. 417 00:30:16,820 --> 00:30:21,320 Fortunately, the only thing that happens is that on April 7, 2005, 418 00:30:22,040 --> 00:30:26,340 Tony Erpenbeck is indicted on seven counts relating to the plot. 419 00:30:27,440 --> 00:30:29,800 He goes on trial eight months later. 420 00:30:31,180 --> 00:30:35,340 His claim was, I wasn't serious, that I was afraid of Collins, that I was afraid 421 00:30:35,340 --> 00:30:39,120 of prison life, and that he never intended to carry out the threats. 422 00:30:39,800 --> 00:30:45,340 It could conceivably be a persuasive argument until the jury hears the tapes. 423 00:30:46,680 --> 00:30:48,540 I think they resonated. 424 00:30:48,840 --> 00:30:52,760 Certainly, they resulted in, at least in part, in his convictions. 425 00:30:54,280 --> 00:30:59,760 Tony Erpenbeck is convicted on four counts of solicitation for threatening 426 00:30:59,760 --> 00:31:04,720 kill a federal judge and federal law enforcement officer and threatening to 427 00:31:04,720 --> 00:31:06,960 kidnap a federal officer's family members. 428 00:31:07,740 --> 00:31:11,380 It extends his total prison sentence to 20 years. 429 00:31:12,860 --> 00:31:18,040 Once again, it appears that the Erpenbecks have no more options, but 430 00:31:18,040 --> 00:31:20,580 be underestimating their demented creativity. 431 00:31:21,100 --> 00:31:27,260 In the summer of 2009, former home -building giants Bill and Tony Erpenbeck 432 00:31:27,260 --> 00:31:33,100 in federal prisons, serving out long sentences for their participation in a 433 00:31:33,100 --> 00:31:35,580 million fraud and its aftermath. 434 00:31:36,360 --> 00:31:41,140 Lori Erpenbeck has served a one -year sentence for her role in the fraud and 435 00:31:41,140 --> 00:31:42,140 been released. 436 00:31:42,240 --> 00:31:47,200 The Erpenbeck closing agent, Michelle Marksberry, has pleaded guilty to one 437 00:31:47,200 --> 00:31:49,560 count of bank fraud and serves two years. 438 00:31:49,920 --> 00:31:51,440 She's also been released. 439 00:31:52,660 --> 00:31:58,080 Bill's brothers, Gary and Jeff Erpenbeck, are investigated in the fraud 440 00:31:58,080 --> 00:31:59,080 charged. 441 00:32:00,110 --> 00:32:04,210 For the hundreds of homebuyers represented in Brandon Volker's class 442 00:32:04,210 --> 00:32:07,750 lawsuit against People's Bank, there's even a happy ending. 443 00:32:09,530 --> 00:32:15,450 The bank, which allowed illegal deposits into Erpenbeck's account, pays off all 444 00:32:15,450 --> 00:32:19,730 the construction mortgages that Erpenbeck had left on the homebuyers' 445 00:32:20,210 --> 00:32:23,910 My clients went through a lot, but they got what they were supposed to have 446 00:32:23,910 --> 00:32:26,010 gotten from day one, their house free and clear. 447 00:32:27,340 --> 00:32:32,100 It's something Charles and Sherry Mitchell, the initiators of the suit, 448 00:32:32,100 --> 00:32:33,100 proud of. 449 00:32:33,460 --> 00:32:38,200 I felt good that we not only helped ourselves, we helped a lot of other 450 00:32:38,220 --> 00:32:39,220 That was a good feeling. 451 00:32:39,400 --> 00:32:40,960 I can only speak for myself. 452 00:32:41,240 --> 00:32:43,560 I mean, I felt good about that. 453 00:32:44,820 --> 00:32:49,360 Unfortunately for Linda Harlow, she is left dealing with the fallout from 454 00:32:49,360 --> 00:32:51,260 Erpenbeck's fraud for years. 455 00:32:52,060 --> 00:32:56,760 Because Erpenbeck never cleared his original loan on the construction, The 456 00:32:56,760 --> 00:32:59,520 is burdened with an overwhelming amount of debt. 457 00:32:59,900 --> 00:33:06,280 It was $240 ,000 on a house that was worth $142 ,000. 458 00:33:07,880 --> 00:33:11,600 She declares bankruptcy and walks away from the home. 459 00:33:13,060 --> 00:33:15,660 Sometimes you just can't give a house away. 460 00:33:15,900 --> 00:33:20,420 I tried to give clear title to my bank. They couldn't take it. I tried to give 461 00:33:20,420 --> 00:33:23,100 the title back to Urban Beck's lender. 462 00:33:23,300 --> 00:33:24,300 They couldn't take it. 463 00:33:25,030 --> 00:33:30,350 Eventually, she finds recourse by suing her mortgage company, which she believes 464 00:33:30,350 --> 00:33:34,570 botched the closing by not fulfilling its responsibility of making sure 465 00:33:34,570 --> 00:33:36,670 Erpenbeck's loan was paid off. 466 00:33:37,490 --> 00:33:42,390 At the end, it was settled favorably in my case. 467 00:33:42,610 --> 00:33:44,550 You can't get back the frustration. 468 00:33:46,450 --> 00:33:50,790 But, you know, I learned a lot from it. 469 00:33:51,340 --> 00:33:56,480 People's Bank, which is very profitable before the fraud breaks, can't recover 470 00:33:56,480 --> 00:34:00,220 from the money they owe from the lawsuits and are eventually sold. 471 00:34:01,180 --> 00:34:07,080 In June 2004, John Fennin and Mark Minney each plead guilty to three counts 472 00:34:07,080 --> 00:34:12,020 relating to bank fraud and go on to serve five years and four and a half 473 00:34:12,020 --> 00:34:13,020 respectively. 474 00:34:13,960 --> 00:34:18,600 In all, Bill Erpenbeck leaves behind him a trail of destruction. 475 00:34:19,230 --> 00:34:25,350 that lands six people in prison for combined sentences of more than 60 years 476 00:34:25,350 --> 00:34:30,050 defrauds banks, title companies, and homeowners of more than $60 million. 477 00:34:32,070 --> 00:34:37,830 In November 2005, Erpenbeck talks with a Cincinnati news station from prison in 478 00:34:37,830 --> 00:34:41,250 Florida to make one last sales pitch for sympathy. 479 00:34:42,190 --> 00:34:43,489 We all made mistakes. 480 00:34:44,050 --> 00:34:45,050 I did. 481 00:34:45,449 --> 00:34:46,449 John did. 482 00:34:47,230 --> 00:34:48,230 Mark did. 483 00:34:49,130 --> 00:34:52,489 You know, I thought about it a thousand times since then. If I just would have 484 00:34:52,489 --> 00:34:57,470 thought of one thing, if I just would have thought of the customer first, and 485 00:34:57,470 --> 00:34:58,530 not thought of everything else. 486 00:35:00,730 --> 00:35:04,070 But four years later, Erpenbeck thinks he's suffered enough. 487 00:35:04,930 --> 00:35:10,530 In August 2009, hoping to get consideration for a lesser sentence, he 488 00:35:10,530 --> 00:35:15,110 Special Agent Gormley to tell him about personal assets that he had kept hidden 489 00:35:15,110 --> 00:35:16,950 during the original investigation. 490 00:35:17,970 --> 00:35:21,790 Gormley heads to the Federal Correctional Institute in Coleman, 491 00:35:21,790 --> 00:35:23,030 speak to Erpenbeck. 492 00:35:23,490 --> 00:35:27,090 Well, what he told us was that he was not honest with me when he talked to me 493 00:35:27,090 --> 00:35:28,090 the beginning. 494 00:35:28,410 --> 00:35:29,410 What a surprise. 495 00:35:30,310 --> 00:35:33,570 But what he told me is that he gave money to Steve Skidmore. 496 00:35:34,090 --> 00:35:38,850 Steve Skidmore was Erpenbeck's friend and next -door neighbor in 2002 when 497 00:35:38,850 --> 00:35:40,730 Erpenbeck was first under investigation. 498 00:35:41,430 --> 00:35:43,690 And now he's been sold out. 499 00:35:44,410 --> 00:35:49,590 Skidmore bought the house of former Erpenbeck neighbor Glenn Fagan when 500 00:35:49,590 --> 00:35:50,850 moved in 1999. 501 00:35:51,730 --> 00:35:55,630 Bill was one of those guys that would hone in on somebody. 502 00:35:56,270 --> 00:35:59,950 There was always somebody who was rotating out of the cycle, putting under 503 00:35:59,950 --> 00:36:02,250 wing, and taking along for the ride. 504 00:36:03,350 --> 00:36:06,590 But rides with Erpenbeck have a way of getting bumpy. 505 00:36:07,660 --> 00:36:12,660 In prison in Florida, Erpenbeck tells Special Agent Gormley a story from back 506 00:36:12,660 --> 00:36:13,660 2002. 507 00:36:14,260 --> 00:36:19,260 He said he went golfing with Steve Skidmore and they talked in the car. 508 00:36:19,780 --> 00:36:21,820 And he said, hey, I've got the money. 509 00:36:22,400 --> 00:36:26,100 I don't know what to do with it. And Steve offered to add it for him. 510 00:36:27,620 --> 00:36:32,660 Erpenbeck tells Gormley that the money is zipped away in an Erpenbeck company 511 00:36:32,660 --> 00:36:34,140 soft -sided cooler. 512 00:36:35,130 --> 00:36:37,550 that he doesn't know what Skidmore did with it. 513 00:36:38,450 --> 00:36:44,090 Gormley heads back to Kentucky and crafts a plan to pry the secret out of 514 00:36:44,090 --> 00:36:49,190 Skidmore. The special agent enlists Bill's brother, Jeff Erpenbeck, to wear 515 00:36:49,190 --> 00:36:54,310 wire and tell Skidmore that the Erpenbecks are desperate for cash and 516 00:36:54,310 --> 00:36:56,370 know where he's hidden the money. 517 00:36:58,230 --> 00:37:03,730 Steve Skidmore finally admitted after some time that, okay, this is legit. 518 00:37:04,270 --> 00:37:05,530 I need to get this money to Bill. 519 00:37:06,190 --> 00:37:12,050 He tells Jeff Erpenbeck he buried it on the golf course behind his house, 46 520 00:37:12,050 --> 00:37:13,750 paces off the third tee box. 521 00:37:15,490 --> 00:37:18,830 Within the week, the FBI starts digging. 522 00:37:19,310 --> 00:37:24,810 Here's the third hole, the golf course, really 46 paces from here. 523 00:37:27,350 --> 00:37:31,950 But agents soon begin to doubt that X marks the spot. 524 00:37:33,840 --> 00:37:37,440 It's been years, and a lot has changed. So that landscape and the roots have 525 00:37:37,440 --> 00:37:39,800 grown over, so it's really some tough digging. 526 00:37:43,220 --> 00:37:48,580 After five long hours of digging, one of the agents finally spots the corner of 527 00:37:48,580 --> 00:37:49,720 a $100 bill. 528 00:37:51,080 --> 00:37:55,120 And I almost didn't believe it, because we had been out there for so long 529 00:37:55,120 --> 00:37:58,560 digging. And sure enough, we could see remnants of a cooler. 530 00:38:00,300 --> 00:38:04,560 The agents unearthed the same soft -sided Erpenbeck company cooler that 531 00:38:04,560 --> 00:38:05,580 Erpenbeck had described. 532 00:38:06,500 --> 00:38:10,540 Could this be the remnants of Erpenbeck's $69 million scam? 533 00:38:11,460 --> 00:38:15,320 It was in horrible condition when we found it. It was wet, it was damp, it 534 00:38:15,320 --> 00:38:19,740 torn up, and there was nothing done to protect the integrity of the case or the 535 00:38:19,740 --> 00:38:20,740 funds. 536 00:38:21,160 --> 00:38:25,280 Nevertheless, the agents are able to salvage enough pieces to send to the 537 00:38:25,280 --> 00:38:26,400 Department of the Treasury. 538 00:38:27,040 --> 00:38:32,320 And they received back a check for $257 ,611. 539 00:38:34,840 --> 00:38:39,920 Skidmore, who had previously told Gormley he knew nothing about hidden 540 00:38:39,920 --> 00:38:44,980 charged with making false statements to a federal agent. His excuse is sadly 541 00:38:44,980 --> 00:38:47,180 naive. I just said he did it for Bill. 542 00:38:47,940 --> 00:38:50,020 It was just, again, blind loyalty. 543 00:38:50,480 --> 00:38:51,480 He was furious. 544 00:38:51,680 --> 00:38:53,820 And in a way, I understand his frustration. 545 00:38:54,460 --> 00:38:55,880 He didn't take any of the funds. 546 00:38:57,870 --> 00:39:01,550 You know, it can only be filed under the category of no good deed goes 547 00:39:01,550 --> 00:39:07,250 unpunished. You know, he wasn't involved with Bill in any way, shape or form 548 00:39:07,250 --> 00:39:13,830 other than a drinking buddy and a golf buddy and thought he was doing Bill a 549 00:39:13,830 --> 00:39:14,830 favor. 550 00:39:16,730 --> 00:39:21,390 Skidmore pleads guilty and is sentenced to 16 months in prison. 551 00:39:22,690 --> 00:39:25,990 Bill Erpenbeck's betrayal is all for nothing. 552 00:39:26,730 --> 00:39:29,510 He doesn't get a single day taken off his sentence. 553 00:39:30,130 --> 00:39:34,150 He only accomplishes landing one more friend in prison. 554 00:39:34,910 --> 00:39:38,310 Steve Skidmore would not be in prison if it were not for Bill Erpenbeck. 555 00:39:39,230 --> 00:39:41,010 Laurie Erpenbeck would not be in prison. 556 00:39:41,890 --> 00:39:43,790 Michelle Marksbury would not have gone to prison. 557 00:39:44,690 --> 00:39:49,070 I don't think the bankers would have gone to prison without Bill Erpenbeck. 558 00:39:50,370 --> 00:39:53,770 Erpenbeck is still scheduled to be released in 2025. 559 00:39:54,390 --> 00:39:58,040 But with Bill Erpenbeck, You never know what might happen. 560 00:39:58,360 --> 00:40:01,120 I don't think we've heard the last. There's probably something else going to 561 00:40:01,120 --> 00:40:02,900 come up. This is a case that never ends.