Green Gavel logo
By Eric Freedman
Capital News Service
The former owner of a West Michigan timber harvesting business has been sentenced to 41 months in federal prison for cheating investors of more than $2 million.
Authorities said Trent Witteveen of Montague ran a Ponzi scheme involving phony documents and misusing some investors’ money to repay others.
U.S. Judge Robert Jonker also ordered Witteveen, who pleaded guilty to wire fraud, to pay $844,282 in restitution.
The grand jury’s indictment laid out the background this way, saying Witteveen “earned his living in the timber harvesting business, initially as a subcontractor or independent contractor to sawmills:
He registered a company called Tall Timber and ran the fraud scheme from June 2018 to January 2021, the indictment charged.
It described how Witteveen approached landowners whose property had hardwood and softwood trees for purchase by the lumber industry and sawmills, mostly around Pentwater and elsewhere in Northwest Michigan
“Had he operated his business in a lawful manner, Witteveen would have used the investment capital to pay the landowners and harvest timber, including by subcontracting the cutting of the timber,” the indictment said. “When the cutters harvested the timber, it would be transported to various sawmills who would determine a price and pay Titan Timber.”
But that’s not what actually happened, the indictment charged. Instead, he used proceeds from one investor to repay others and spent their money for his own personal expenses and lifestyle.
The defense offered a somewhat different spin on events:
In a sentence memorandum, defense lawyer Ryan Maesen of Walker said, “For a time, the business went as planned and investors were paid off. It did so well that others heard of the business and wanted to get into it.”
“At some point, Titan Timber ran into trouble financially and couldn’t pay back investors as it agreed. At this point, he began using false and altered contracts,” Maesen said. “People got suspicious. The FBI began getting calls from the investors who were now more properly victims.”
And “pride” prevented Witteveen form admitting that the business “wasn’t working out” and weathering “the financial storm,” he said.
Maesen said Witteveen didn’t take the money “to support a lavish lifestyle” or to buy “homes, vehicles, vacations or toys. There is no addiction to feed or creditors to pay.”
In announcing the sentence, U.S. Attorney Mark Trotten said, “Witteveen stole from innocent investors by operating his sham timber business as a Ponzi scheme, solely to line his own pockets.”
And Cheyvoryea Gibson, the FBI’s special agent in charge for Michigan, said, “Witteveen exploited the trust of his investors for personal gain, creating harm to others and the integrity of our financial systems.”