4 PM PAGE 1/003 Fax Server USAO_Fax 2/7/20ll & FAX To: KCRG TV Company: Fax: 13193688505 Phone: From: VanWeelden, Sali (USAIAN) Fax: Phone: 319-731-4010 E-mail: SVanWeelden@usa.doj.gov NOTES: piess release 1:30 PM. Date and time of transmission: Monday, February 07, 2011 5: Number of pages including this cover sheet: 03,USAO_Fax 2/7/2011 S:51:54 PM PAGE 2/003 Fax ServerUSAO_Fax 2/7/2011 9:51:54 PM PAGE 3/003 Fax Server United States Attorney’s Office Northern District of lowa United States Attorney Stephanie M. Rose PRESS RELEASE For further information contact: Bob Teig FOR IMMEDIATE RELEASE (319) 363-6333 Date: February 7, 2011 Cedar Rapids, lowa AMANA HUSBAND AND WIFE SENTENCED TO FEDERAL PRISON FOR BANKRUPTCY FRAUD Today, a federal judge in Florida sentenced a couple from Amana, lowa, to prison because they defrauded bankruptcy creditors out of more than $350,000 in property. Gerald Schuerer was sentenced to over four years’ imprisonment, and his wife Fay Schuerer was sentenced to over two years’ imprisonment. Gerald Schuerer, age 60, and his wife Fay Schuerer, age 58, both from Amana recelved their sentences after a jury verdict on November 8, 2010, finding them both guilty of bankruptcy fraud and mail fraud The evidence showed the Schuerers made sham sales of assets to relatives with an understanding they would reacquire the assets from their relatives after going through bankruptcy. These assets included a vehicle, boats, household property, jewelry, stocks and other investments worth approximately $380,000. The Schuerers then professed to move to Florida where bankruptcy exemptions are more liberal than in lowa, filed for bankruptey protection, moved back to lowa, and got the property back from their relatives. The Schuerers used the sham transactions to hide their assets. The Schuerers were charged and tried in the Northern District of Florida where their bankruptcy was filed. They were sentenced in Pensacola by United States District Court Judge M. Casey Rodgers. Gerald Schuerer was sentenced to 50 months’ imprisonment, and Fay Schuerer was sentenced to 30 months’ imprisonment. The Court imposed a fine of $25,000 and a special assessment of $200 on each defendant. Both must also serve a two-year term of supervised release after their prison term. There is no parole in the federal system. The Court also ordered the defendants to pay restitution to the United States Bankruptcy trustee, for distribution to creditors, in the amount of $394,984 The Schuerers were released on the bond previously set and are to surrender to the Bureau of Prisons on March 21, 2011 The case was prosecuted by Assistant United States Attorney C.J. Williams. The case was investigated by the Federal Bureau of Investigation with assistance from the Offices of the United States Trustee in the Northern Districts of lowa and Florida. The investigation and prosecution were initiated by the Bankruptoy Fraud Task Force of the Northern District of lowa Court file information is available at https://ect find.uscourts.gov/cgi-bin/login. pl. The case file number is 3:10cr74MCR, -30-