The U.S. Department of Justice recently announced the sentencing of two men found guilty of defrauding multiple people in a container home scheme, leading to a combined sentence of 34 years in federal prison.
Leslie Robert Burk, of El Paso, Texas, and Ethan Sturgis Day, of Idyllwild, Calif., reportedly colluded and used their business, Atomic Container Homes Inc., and others to defraud customers, according to a May 31 news release. Burk and Day persuaded customers to sign contracts for the production of shipping container homes and other goods, many of which were never delivered and many of which were of poor quality.
“Claiming to own a legitimate business for the sake of defrauding unsuspecting victims is a reprehensible crime and one that my office will continue to prosecute in order to protect our citizens from fraud and financial exploitation," DOJ Attorney Jaime Esparza said in the release.
Following an inquiry, the Federal Bureau of Investigation discovered numerous people who, as former Burk and Day clients, believed they had been cheated, the release reported. The two defendants were detained.
The conspirators reportedly stole more than $2.5 million from at least 41 victims in total, according to the release. Numerous consumers shelled out thousands of dollars but never received the goods they ordered.
The 33-count indictment was released in April 2019 and contained multiple counts that included the two defendants, the release said. On June 22, 2022, a federal jury found Burk and Day guilty on 23 counts and 22 counts, respectively.
Burk was given a sentence of 25 years in federal prison, the release reported. Day received a nine-year prison term. Currently, a restitution hearing is set for July 11.
"This sentencing holds the defendants accountable for their fraudulent scheme while providing restitution to the victims," Esparza added, according to the release. "I appreciate the efforts of our partners at the FBI for their role in the investigation, ultimately leading to the successful outcome of this case."
“Out of pure greed, Burk and his co-conspirator, Day, defrauded consumers of a basic and essential product which is providing homes to families. They victimized many hardworking people and businesses, not only from El Paso, but across the nation," FBI El Paso Special Agent in Charge Jeffrey R. Downey said in the release. "Their sentencing shows the FBI will not tolerate financial predators living off empty promises for their own personal gain, and we will seek justice for all financial fraud victims, regardless of whether they are located in El Paso or the rest of the country."
