Court: Businessman Failed to Report $9 Million from Real Estate Deals

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A former Northville resident admitted in federal court earlier this month that he didn’t report nearly $9 million in income received by several real estate businesses he operates and controls in the Detroit metro area.

Richard Pierce faces more than three decades in prison and fines that could be as high as $1.25 million after his Feb. 18 guilty plea in U.S. District Court in Detroit to obstructing and impeding the Internal Revenue Service and conspiring to commit bank fraud.

In a news release, the government said for tax years 2007-2013, Pierce failed to report more $9 million in gross business receipts derived from Phoenix Real Estate Company, Phoenix Preferred Properties LLC, Detroit Matrix, First Metro Properties LLC, First Metro Real Estate Services LLC, Phoenix Office Plaza-II LLC, Rosedale/Grandmont Properties LLC, and RFP Ventures LLC.

Additionally, he made a false loan application to a mortgage lender in November 2007, falsely reporting the buyer was paying $77,900 for the property without disclosing the buyer received a $46,340 “kickback” from the seller, the government said.

In addition, on Nov. 26, 2007, Pierce participated in a bank fraud scheme wherein he caused the submission of a false loan application to a mortgage lender on which he falsely reported that the buyer was paying $77,900 for a residential property without disclosing that the buyer received a $46,340 “kickback” from the seller.