GRAND RAPIDS, MI – Jeffrey Richter, a successful businessman and big supporter of Davenport University, was sentenced Thursday, Oct. 16, to 30 months in federal prison for underreporting income by nearly $1 million.
Richter, a former Grandville resident who has sold his house and is selling his business interests, was ordered by U.S. District Judge Robert Holmes Bell to pay $882,655 in restitution. Richter pleaded guilty to failing to file a tax return. He faced up to three years in prison.
His attorney, Mark Pendery, said his client had no excuses – he acted out of “greed and stupidity.”
Related: Former Grandville man pleads in tax case, underreported income by $1 million
He said Richter worked hard after earning an accounting degree at Davenport and was eventually hired at John H. Dekker & Sons Inc. Later, he became part-owner and was responsible for much of its success before he left, his attorney said.
He also became a part owner of Hi-Tec Buildings Services with his childhood friend, Brian Hogan. The company employs about 500 providing janitorial services to agencies and schools throughout the state, his attorney said.
“In addition to being a successful businessman, Mr. Richter is also generous with his time and money,” Pendery wrote in a sentencing memorandum. “He assisted Davenport University as one of its key alumni in helping the university grow.”
Before he pleaded guilty, he “resigned his position with the Alumni Association so as not to embarrass the university,” his attorney said.
Pendery said his client is selling everything, including his interest in Hi-Tec.
“The fact that Mr. Richter is now a convicted felon facing severe financial penalties and a very uncertain future reflects the seriousness of the crime. His reputation may never recover from what he has done. Mr. Richter knows that he has brought all of this upon himself. There is no question that he understands the seriousness of the offense and has made every effort to try to correct the missteps he has taken,” Pendery wrote.
“The stigma of a criminal record, the exposure of a sentence of substantial time in prison, and the prospects of additional taxes and penalties all promote respect for the law and result in a just punishment for Mr. Richter's offense.”
Richter filed false tax returns based on his personal use of Dekker credit cards from 2005 to 2011 while he was a minority owner. His actions created “substantial tax liability, both for himself and Dekker,” his attorney said.
He said Richter cooperated early with the IRS criminal Investigation division and federal prosecutors.
John Agar covers crime for MLive/Grand Rapids Press E-mail John Agar: jagar@mlive.com and follow him on Twitter at twitter.com/ReporterJAgar