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Contact: Jim Cross
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         Sept. 18, 2008

CALIFORNIA MAN PLEADS GUILTY TO SWINDLING FAMILY, FRIENDS IN KANSAS

WICHITA, KAN. – David E. Burkholder, 55, San Francisco, Calif., pleaded guilty to 24 counts of wire fraud, U.S. Attorney Eric Melgren announced Thursday.

“Mr. Burkholder obtained more than $500,000 from family and friends in Kansas with fraudulent claims about his business affairs, including the false claim that he needed money to pay entertainer Barbara Streisand,” Melgren said.

From 2003 through April 2005, Burkholder fraudulently persuaded his parents in McPherson, Kan., to raise approximately $548,000 on his behalf from friends and members of their church. In furtherance of his scheme, Burkholder made:

– False claims he needed money to settle a personal injury lawsuit in which a woman was claiming to have miscarried due to the accident.
– False claims that one of his business partners had been killed in a tsunami and he needed cash to give the deceased partner’s family.
– False claims that he would repay people who gave him money by selling his rental property on Aztec Street in San Francisco.
– False claims he owed singer Barbara Streisand in excess of $100,000 to terminate a contract between her and his partnership.
– False claims that he was going to be paid a $1 million signing bonus when his partnership incorporated.

As a result of Burkholder’s false statements, his parents caused funds to be transmitted by wire transfer from McPherson to San Francisco.

Sentencing is set for Dec 4, 2008. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count, as well as restitution of the $548,000.

Melgren commended the Federal Bureau of Investigation and Assistant U.S. Attorney Alan Metzger for their work on the case.