Prominent Pahrump developer Hans Seibt is being investigated for criminal charges in connection with his bankruptcy filing, an investigator confirmed this week.

"In a way it's a Ponzi-like scheme. We're not sure," said Bill Holland, a former Las Vegas Metro detective hired by the bankruptcy court to do forensic accounting.

"We have only preliminary evidence he received an awful lot of money that was supposed to be promised to certain property endeavors, which turned out probably were not," Holland said.

A Ponzi scheme is a situtation in which investors are paid by future investors.

Seibt sent letters to his clients Aug. 30 informing them he would be filing for Chapter 7 bankruptcy protection. The filing was blamed on the dramatic downturn in the U.S. housing market presenting severe liquidity challenges in the credit and mortgage markets, diminished consumer confidence, increased home inventories and foreclosures and downward pressure on home prices.

Numerous investors, including many in Pahrump, are fearful they will lose their life savings through the bankruptcy.

Seibt's flagship development, the Seibt Desert Retreat Motorcoach Park, the former Calvada Sports Complex on Highway 160 and Leslie Street, has been taken over by a first trust deed holder, Dunham and Associates of San Diego, and renamed Desert Treasures RV Park.

Seibt was scheduled to be questioned in a private examination similar to a deposition last Friday, but the date was postponed until April 7 at the request of his lawyers.

"I work with the FBI immediately and turn over most of my evidence to the FBI, which in this case they are working concurrently with me. They are building their own case. So between the two of us, by law he must turn over documents to me, where if he turns over documents to the FBI it's usually by subpoena," Holland said.

"It makes it easier for me to get documents, bank statements, tax returns, a ton of documents dealing with this case," he said.

Hearings for investors to provide their input began in late October and lasted through early December. Holland said they only expected about 30 people for the first hearing, which was scheduled in a small court and had to be moved to a larger courtroom when about 300 men and women showed up.

While Holland is investigating criminal wrongdoing, local creditors are optimistic they will recover some of their investment through civil action in the bankruptcy case. Ken Hogan, with the law firm of Gordon and Silver, is representing the creditors.

Hogan referred inquiries to Eric Olson with his firm, who was unavailable for comment.

Holland said about a third of the investors have legitimate first trust deeds to the property. The problem, he said, is with people who invested in one of the eight limited liability corporations who thought they were purchasing property directly.

"Most of them invested in property and it turned out they were not invested in property. They were invested in limited liability companies that in turn went out and bought property. There are about five other LLCs that are not in bankruptcy in which most of the partners or investors are invested in those LLCs. So probably they haven't lost their property, they just don't have exclusive rights on the property," Holland said.

One company in bankruptcy in which Seibt is listed as 94 percent shareholder, HSLV Development Corp., listed only $15 million in assets and $42 million in liabilities, of which $31 million in liabilities is in creditors holding secured claims.

"These people who had been investing with him for years and years felt fairly secure when he was investing in something, he was following through. The problem arises only in the past couple years, and it deals almost exclusively with the RV park, and we believe the man ran into trouble financially, and as a result he continued to raise money and probably did not invest ... where it should've been invested," Holland said.

Pahrump resident Dennis London said he invested just over $1.5 million. After notice was served of Seibt's bankruptcy in September, London was in the depths of despair, having to return to work, even contemplating suicide.

Today he sees things as a little bit rosier.

London said he has 18 first trust deeds on land in Pahrump.

Referring to attorney Ken Hogan, London said, "Ken keeps saying he thinks there's a pretty good chance the first trust deed holders will get a good chunk of it back."

Holland noted it's not a good time to try to sell off property.

London said Hogan told them they could speed up their returns by foreclosing on the properties quickly.

"All the investors on any one trust deed have to agree on the sale. It has to be unanimous." Hogan "thinks because most of the investors are senior citizens, they don't have the time or the resources to wait for the market to come back," London said.