Woman sentenced in Redstone Castle fraud case
August 27, 2006
DENVER – A woman accused in a multimillion-dollar fraud scheme involving the historic Redstone Castle near Aspen was sentenced Friday to nine years in prison.
Jannice McLain Schmidt, 69, of Denver pleaded guilty in May to securities fraud and criminal forfeiture.
IRS agents seized the 42-room castle in the mountains near Aspen in March 2003 while investigating a high-yield investment fraud scheme that affected more than 1,000 investors.
Investigators also seized 60 bank accounts, eight NASCAR race cars, a race truck and related vehicles and items. The seized assets were worth a combined $24 million, U.S. Attorney Troy Eid said.
Schmidt’s husband, Norman Schmidt, and four other people are scheduled to go on trial April 2 in the same case.
A fifth suspect, Peter Moss, is a fugitive and is believed to be overseas, U.S. attorney’s spokesman Jeff Dorschner said.
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The Redstone Castle, in the Crystal River Valley about 170 miles west of Denver, was built by Redstone founder John Cleveland Osgood in 1902.
The castle was purchased for $6.3 million in 2000 by a group of investors that included Norman Schmidt. It was sold at auction in March 2004 for about $4 million.