Ex-timber entrepreneur Trent Witteveen gets 41 months in federal prison for defrauding investors of over $2 million in a Ponzi-style scheme.
Timber Fraud Scheme Nets Prison Sentence for Ex-Business Owner
GRAND RAPIDS, MI — A former Pentwater-area business owner, Trent William Witteveen, was sentenced to 41 months in federal prison for orchestrating a wire fraud scheme that defrauded investors of over $2 million. U.S. District Court Judge Robert J. Jonker also ordered Witteveen, 40, of Montague, Michigan, to pay $844,282 in restitution to victims of his Ponzi-style operation.
Witteveen ran the fraudulent scheme from June 2018 to January 2021 under the guise of a timber harvesting business, Titan Timber and Titans Timber LLC. Federal prosecutors revealed that he fabricated contracts, inflated timber values, and recycled funds from new investors to pay off earlier ones—all to fund a lavish personal lifestyle.
“This sentence sends a clear message that fraudsters who devastate honest, hardworking individuals will be prosecuted vigorously,” said U.S. Attorney Mark Totten.
How the Timber Fraud Scheme Operated
Witteveen convinced investors to provide capital for supposed timber harvesting contracts with landowners, promising lucrative returns. In reality, the contracts often didn’t exist, and timber from the properties had already been harvested. On other occasions, he inflated the value of timber far beyond what sawmills would pay.
To sustain the illusion, Witteveen fabricated evidence. He obtained cashier’s checks and money orders, presenting them to investors as payments to landowners, only to funnel the funds back into his own bank account. The scheme unraveled as investigators uncovered how he used new investments to pay back prior investors or to maintain the appearance of profitability.
“Mr. Witteveen exploited the trust of his investors for personal gain, creating harm to others and the integrity of our financial systems,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan.
FBI and State Police Investigation Seals Conviction
The FBI Grand Rapids Office, with assistance from the Michigan State Police, led the investigation. Assistant U.S. Attorney Ron Stella prosecuted the case, uncovering the breadth of the fraud, which involved over $2 million in investor funds. While some of the money was recycled to maintain the scheme, much of it was diverted to fund Witteveen’s personal expenses and lifestyle.
The sentence is a significant victory in holding financial criminals accountable, according to law enforcement officials.
Context of Financial Crimes in Michigan
Witteveen’s case is a reminder of the vulnerabilities faced by investors in Michigan and beyond. The timber industry, while lucrative, can be opaque, making it ripe for exploitation. This sentencing is part of broader efforts by federal and state authorities to crack down on fraudulent schemes, particularly those that target unsuspecting investors.
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