More witnesses testified Friday as prosecutors continue to pile up evidence against an Ypsilanti Township condominium developer accused of bilking $700,000 from prospective homeowners.

Prosecutors also accused Robert George of participating in money-laundering schemes involving other failed real-estate projects that landed him in bankruptcy court.

Robert George, right, confers with his attorney during an earlier portion of the preliminary hearing.

File: Lon Horwedel | AnnArbor.com

Transcripts of those bankruptcy proceedings and the role they played in the Washtenaw County Sheriff’s Department investigation were the focus of testimony taken Friday during the fourth installment of George’s preliminary hearing. The hearing began Jan. 6.

District Court Judge Elizabeth Hines continued the hearing again until March 3, when final arguments are expected, officials said.

George, 52, was charged in December with obtaining money under false pretenses exceeding $20,000, larceny by conversion, and fraudulent use of building contract funds.

Authorities accused him of taking more than $700,000 from subcontractors and prospective homebuyers in the Crystal Pond Condominium project and converting it for personal use. He then filed for bankruptcy in an attempt to avoid paying the people back, reports indicate.

Prosecutor Brenda Taylor attempted to introduce volumes of bankruptcy court transcripts and records Friday, which she said were important investigative tools. In them, she said, George admitted to certain business practices that were repeated in the Crystal Ponds project.
Those included laundering money between the projects with the help of at least one other business associate.

“It’s the first time we’ve heard a reference to that,” Tim Niemann, George’s attorney, said during a spirited objection. “We’ve had concerns about rhetoric in this case, and it can color and cloud the perception of what’s going on.”

Hines denied Taylor’s request to admit the records as evidence, saying they were beyond the scope of the current criminal charges.

Taylor said she has mentioned money laundering before, and it was only brought up because Niemann challenged detectives about the thoroughness of their investigation.

In previous hearings, Niemann questioned why Sheriff’ Detective Kevin Parviz didn’t speak to George’s previous business associates or independently check bank records of the other failed projects to bolster his case.

On Friday, Parviz testified he relied on banking summaries from the bankruptcy case and did not believe at least one of George’s main business partners would be reliable because he suspected the man was also involved in fraud.

Parviz said that, according to the transcripts, George indicated he took out commercial loans to fund other projects in Monroe County. He would then meld the loan money with his personal bank accounts to pay contractors and construction costs.

Authorities said George’s scheme ensnared more than 30 different victims, and the ongoing investigation shows total losses from this and other developments in Monroe County could reach up to $20 million.

George remains free on a $50,000 personal bond. Hines recently denied his request to leave the country, court records show.

Art Aisner is a freelance writer for AnnArbor.com. Reach the news desk at news@annarbor.com or 734-623-2530.