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Ronald Eugene Stover, 62, of Tualatin, and his son Jeffrey Charles Stover, 40, of Wilsonville, pleaded not guilty on Mon., June 20, 2016 to federal indictments charging each with wire fraud, money laundering and bankruptcy fraud. They appeared in U.S. District Court in Portland.

(Bryan Denson/The Oregonian)

A father and son have been indicted on federal wire and bankruptcy fraud charges, accused of purporting to raise money for different capital projects while using investors' loans for personal use.

Ronald Stover, 62

Ronald Stover, 62, of Tualatin, and his son, Jeffrey Stover, 40, of Wilsonville, entered not guilty pleas to indictments unsealed Monday during their first appearances in U.S. District Court in Portland.

The indictments allege that the two Stovers were working together for more than four years in a conspiracy to defraud investors and fund their own lavish lifestyles, according to Assistant U.S. Attorney Donna Maddux.

The charges allege the financial fraud occurred between March 29, 2010, and March 10, 2015.

The senior Stover billed himself as someone who helped turn around companies that were in financial distress and worked to secure private investment for a company called Tri-Core Group and then for another company called Xtreme Iron, the indictments say.

He represented to investors that the businesses needed additional capital to successfully capture what Ronald Stover called "available business opportunities,'' the indictment says.

"In truth and fact, R. Stover sought funds from investors in part to divert those funds to his personal use and the use of his family members,'' the indictment says.

Jeffrey Stover, 40

Ronald Stover also is accused of making false statements in bankruptcy court proceedings. He filed for personal bankruptcy in Texas on Dec. 13, 2013, attempting to rid himself of more than $9.5 million of debt, according to his indictment.

Ronald Stover also faces federal indictment on charges of securities fraud, theft and racketeering in Nevada, Maddux told the court.

The Stovers were arrested Saturday. U.S. Magistrate Judge John Jelderks allowed their release from custody.

Maddox had urged they be released on a list of financial restrictions, including that they not be allowed to make any financial transactions involving more than $1,000 without approval from a pretrial services officer and that they not have contact with one another as they await trial.

Defense lawyer Kevin Sali, representing the younger Stover, objected to the release conditions, arguing that the government failed to show why the conditions were necessary to ensure his client either would return to court or wouldn't pose a danger to the community.

Maddux said she believed both father and son pose an ongoing financial danger to the community, saying they continue to solicit investors today for fictitious purposes and to raise money for their own benefit. She noted that Ronald Stover failed to give a pretrial services officer with the court any information on his current income as president of a company called Airscape Innovations.

Maddux also asked that the two be required to turn in their passports. She told the court that Jeffrey Stover recently sold his home for $1.8 million and the government believes that significant payout could increase his risk of flight to avoid prosecution.

The judge allowed for the release of both defendants on the general condition that they obey all local, state and federal laws. However, he asked both to return for another court hearing Wednesday afternoon.

Judge Jelderks signaled that he's likely to add some financial restraints as part of their pretrial release conditions to provide some protection to the public while allowing them to maintain legitimate business dealings.

-- Maxine Bernstein

mbernstein@oregonian.com

503-221-8212

@maxoregonian