Witness talks money at trial

Topeka Capital-Journal, The, Feb 14, 2008 by Steve Fry

By Steve Fry

THE CAPITAL-JOURNAL

KANSAS CITY, Kan. - The board of directors of Renaissance, The Tax People, didn't get the company's financial records from Michael Cooper, founder, chief executive officer and president, because he didn't want the board to know what he was doing with company money, a former board member testified Wednesday.

Richard Dahms, a retired probate judge from Buchanan County, Mo., was one of a handful of prosecution witnesses left to testify Wednesday as the prosecution case winds down. After almost five weeks of testimony by prosecution witnesses, it is expected that the U.S. Attorney's Office for the District of Kansas will finish presenting evidence today.

Cooper, 53, is charged in a 148-count federal indictment alleging he sought to cheat the Internal Revenue Service and Renaissance customers out of millions of dollars. In a lawsuit brought by the attorney general's office, a Shawnee County District Court judge found that Renaissance was operating a pyramid scheme.

Cooper typically would do something with company money, then infrequently call a board meeting to get the board to approve his actions, Dahms testified.

For instance, Cooper bought a 10-unit condominium in Puerto Vallarta, Mexico, for $2.5 million and refurbished it, all at the expense of Renaissance, Dahms said. The condominiums were to be owned by Renaissance, but Cooper set up a Mexican corporation to own the real estate. However, the property wasn't in the name of the Topeka-based company, Dahms said.

Another time, Cooper obtained a warehouse at Forbes Field for Renaissance, outfitted it for the company, then asked the board of directors to OK the money already spent, Dahms testified.

Dahms said Cooper also used Renaissance money to:

n\u2002Loan to his brother, Ed Cooper, to buy a residence.

n\u2002Loan to his daughter, Christa, to buy a residence.

n\u2002Loan to other people to buy property in Guymon, Okla.

n\u2002Buy all the vehicles in his possession, including a Dodge Viper, a Plymouth Prowler, a horse trailer, a Harley-Davidson motorcycle and ultralight airplanes.

In February 2000, the board of directors was asked to approve payment by the company of $1 million to Cooper to buy the Double M Ranch, the north Shawnee County home of the Cooper family, Dahms said. But the company had already bought the ranch in December 1999, he said.

The deal to buy the ranch was done before the board was asked to approve it, Dahms said. Appraisals in 2000 valued the 70-acre ranch at $284,000 and $580,000, according to earlier testimony.

As a board member, Dahms was a member of the audit committee, but the committee never was given any financial records to examine, he said.

What was the committee's purpose? Assistant U.S. Attorney Scott Rask asked.

"I do not know," Dahms said, chuckling.

What was the oversight by the board of directors of Renaissance, Dahms was asked.

"Looking back on it, none," he said.

Steve Fry can be reached at (785) 295-1206 or steve.fry@cjonline.com.