Man Guilty of Defrauding His Fellow Parishioners

A former Burbank church member who defrauded fellow parishioners of $10 million faces up to 12 years in state prison following his conviction on 62 counts of securities fraud, money laundering and grand theft, authorities said Tuesday.

Rodney Bruce Swanson, 47, a licensed real estate salesman, was found guilty by a Superior Court jury in Alhambra on Monday after six days of deliberations. Swanson also faces up to $8 million in fines when he is sentenced Aug. 5.

Swanson was found guilty of 44 counts of securities fraud, seven counts of money laundering and 11 counts of grand theft. The victims invested from about $10,000 to $775,000 with Swanson.

Deputy Dist. Atty. Anthony Colannino, who prosecuted the case, said Swanson ran a real estate investment scam that involved as many as 80 people and cost them about $10 million.

Colannino said many of those who invested money with Swanson knew him for many years or considered him a reliable member of Emmanuel Evangelical Free Church in Burbank.

“They trusted Mr. Swanson,” Colannino said. “They trusted and believed in him and that trust was violated.”

Swanson, who authorities said was living in San Marino at the time, acted as a general partner in what was essentially a limited partnership arrangement to promote, purchase, sell and manage fractional interests in large residential and commercial properties.

Colannino said victims received documents showing an ownership interest in the properties. Because deeds were not recorded, Swanson was able to sell the properties without the investors’ knowledge, Colannino said.

Swanson sent them a form letter in 1990 indicating a $10-million loss on investments, authorities said.

The trial, which began in April, included testimony by 10 victims who themselves lost about $4 million. Swanson did not testify.

Swanson’s lawyer, John Powers, who argued during the trial that a poor real estate market was to blame, was unavailable for comment Tuesday.

Neal Brower, pastor at Emmanuel Evangelical Free Church, said many church members were not vindictive but they hoped that Swanson would simply admit that he was wrong.

“We’ve just wanted to carry on faithfully as a church,” Brower said. “Their desire has been just to make sure the truth came out so that nobody else would be able to be hurt again.”