A Fargo real estate developer must spend two years in prison and repay more than$1 million in restitution for money he took while managing 10 large apartment complexes.
Robert Louis Mische, 62, also must serve three years on supervised probation after his release and settle unpaid taxes with the IRS, a judge ruled Friday in Fargo's federal court.
U.S. District Judge Ralph Erickson handed down the sentence to Mische, who pleaded guilty to mail fraud and filing a false tax return. The hearing lasted about three hours as lawyers presented arguments about what penalties Mische should face.
Mische, 616 7th St. N., Fargo, managed apartment complexes in Fargo and Grand Forks through his company, Mische Properties Inc., for investors from Fargo and Alexandria, Minn., where he once lived.
He used proceeds from the properties to give himself advances and loans from 1997 to 2002, then transferred money between bank accounts to cover the transactions.
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During that time, Mische failed to make mortgage, insurance and tax payments on the properties. His attorney, Robert Hoy, argued Mische should see a lighter sentence, in part because his actions ruined Mische's business and marriage.
Erickson ruled Mische must pay $998,375 to investors, $48,852 for their attorneys and $17,200 to their accountant. Investors filed a lawsuit against Mische three years ago to collect the money.
Last fall, Mische filed for bankruptcy and listed investors among those he owed money. As part of his bankruptcy settlement, Mische agreed to a judgment resolving the lawsuit.
The IRS has 180 days to determine how much restitution Mische owes for unpaid taxes
Readers can reach Forum reporter Steven P. Wagner at (701) 241-5542
