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December 24, 2005Plea deal in fraud caseTRAVERSE CITY - The owners of a local investment company accused of bilking area seniors out of more than $1 million in a "Ponzi scheme" accepted a complicated plea deal that will focus on restitution for victims.Gary Singer and Margaret Zimmerman, owners of Estate Growth Management in Traverse City, accepted a deal in principle that will reduce a total of 25 felony charges against them and their company in exchange for restitution and cooperation in ongoing investigations. Company president Singer, 54, and Zimmerman, 47, listed as Estate Growth's CEO, agreed to the deal during a hearing before 13th Circuit Court Judge Philip Rodgers Thursday that will be formally inked on Jan. 6. Investigators believe Estate Growth officials convinced local clients to invest approximately $1.1 million in California-based companies as part of a scheme in which money from new investors was used to pay others. State officials said the scam involved 14 victims in Grand Traverse, Leelanau, Benzie, Cheboygan, Charlevoix and Manistee counties. The deal calls for Singer and Zimmerman to face a delayed sentence on two felony counts each in February, which will allow 11 months for the two to begin making restitution in excess of $300,000 and cooperate with investigators pursuing other suspects, including David Nickerson, of Traverse City. If Singer and Zimmerman comply with all the conditions, the felony charges could be further reduced. Nickerson, 54(*), was charged last month with a felony for allegedly aiding and abetting false pretenses over $20,000 with Singer. Also charged last month was Sonya Lee Vande-Kerkof, 30, of Traverse City, for allegedly aiding Jonathon Brzezinski, a former Estate Growth employee, with defrauding a vulnerable adult out of more than $20,000 in October 2002. Brzezinski, 25, pleaded guilty in October to one felony count of attempting to embezzle more than $20,000 and agreed to pay restitution totaling $260,000. Clearing the Record
Incorrect information provided to the Record-Eagle wrongly listed David Nickerson’s age as 44 in the original version of this article. Nickerson, 54, is charged with one count of aiding and abetting false pretenses over $20,000 with Gary Singer, the president of Estate Growth Management.
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