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SALT LAKE CITY — A Sandy man who was supposed to be taking care of 40 houseboats at Lake Powell has been ordered to pay more than $1 million in restitution to the boat owners, as well as serve nine months in jail.
Jordan Blackwell Schneiman, 42, was charged in December with nine counts of unlawful dealing of property by a fiduciary, and engaging in a pattern of unlawful activity, both second-degree felonies. In July, he pleaded guilty to one of those nine counts, as well as engaging in a pattern of unlawful activity. He was sentenced last week.
The Utah Attorney General's Office began investigating Lake Point Management LLC, a houseboat management company based in Sandy, in January 2019. Schneiman was the owner of the company.
Prosecutors say Schneiman was hired by owners to manage the care, maintenance and expenses of 40 houseboats stationed in Page, Arizona, at the Antelope Point Marina at Lake Powell, including annual dues, repair fees, general maintenance and storage fees, according to the charges.
"As time passed, houseboat owners discovered that their houseboats had accrued substantial debts while under Schneiman's care. Many of the houseboats owed thousands of dollars to the marina in delinquent slip fees. Marine insurance coverage had lapsed on some of the houseboats for failure to pay premiums. Some houseboats had expired vessel registrations," the charges allege.
The attorney general's office said boat owners discovered their houseboat bank accounts had been "drained."
When owners tried to regain control of the management of their houseboat accounts, "in many cases the entity bank accounts had balances of zero or negative balances. Overdraft fees had been accruing and many accounts had been closed by the bank," according to charging documents. "Houseboat entities were forced to negotiate settlements with the marina and other vendors."
Schneiman transferred the money of houseboat owners into unauthorized accounts and used some of it for personal expenses, according to prosecutors.
As part for the sentence, Schneiman will serve 270 days in jail, and then begin paying $1,056,864 in restitution to houseboat owners once he is released. He was also sentenced to two consecutive terms of one to 15 years in the Utah State Prison for each count to which he pleaded guilty. Those sentences were suspended, but could be reinstated if Schneiman fails to meet the terms of his probation, according to the attorney general's office.
"The successful resolution to this case is due to the painstaking work from our prosecution team," said Robert Steed, director of the Financial Crime Unit. "Mr. Schneiman took advantage of these houseboat owners, creating real anxiety and hardship for those who trusted him. We consider it a privilege to help these families receive some measure of justice for what they lost in these crimes."
