DENVER – A former Durango real estate developer will have to wait until December to see whether he goes to prison for tax evasion.
James G. Kreutzer, developer of several troubled projects in Southwest Colorado, was scheduled to be sentenced today, but now that hearing is on hold until Dec. 2.
Kreutzer had been using a public defender, but he recently hired a lawyer, Stanley Slonaker of Phoenix, to represent him at the sentencing, and Slonaker asked for extra time to analyze the long record of the case.
Federal investigators launched a probe into Kreutzer’s dealings, which have also spawned numerous lawsuits by investors. His projects include the Cottonwoods at Dalton Ranch, The Cove, Ptarmigan Ridge Townhomes and Lightner Creek Village.
In court, he admitted taking nearly $1.4 million from the projects and using it for personal expenses. His written plea agreement shows he spent money on house payments, a Mercedes-Benz, gambling trips to Las Vegas and jewelry.
Sentencing guidelines call for a prison term of 18 months to 30 months, although the judge could recommend any sentence up to five years.
Prosecutors dropped fraud charges in exchange for his guilty plea in July to one count of tax evasion. At the time of the plea he was living in Grand Junction.
Kreutzer is free on bond until the hearing.
jhanel@durangoherald.com
