Local Business Leader Sentenced to Two Counts of Wire Fraud
EUGENE, Ore. – On Tuesday, September 6, 2016, U.S. District Judge Ann Aiken sentenced Terry Shockley, 63, to fifty-one months in prison following his April 2016 guilty plea to two counts of wire fraud. Shockley admitted to defrauding clients and investors through his now-defunct property management company, TS Property Management (TSPM).
Over the past two decades, TSPM grew to be a trusted rental and property management resource for Eugene property owners and students alike. When payments Shockley owed his clients began to run late and complaints were made to the Oregon Real Estate Agency, the true financial health of the company began to unravel. The investigation revealed that Shockley struggled with financial issues and was operating under insurmountable debt. He ran TSPM like a Ponzi scheme and also used client money to fund the purchase of a second home in La Pine, Oregon, as well as other lifestyle expenses.
TSPM was an influential local business in Eugene and attracted clients and investors not only from Lane County, Oregon, but from across the country and internationally. U.S. Attorney Billy J. Williams said, “The collapse of TSPM sent shockwaves throughout the Eugene community as property owners learned that a trusted adviser had taken advantage of their faith in his business and in him. This sentence reflects the severity of the defendant’s crimes and the degree to which he exploited individuals in his community and elsewhere for his own financial gain.”
Shockley admitted that his actions resulted in the loss of over $4.5 million to his clients and investors and agreed to entry of a restitution order reflecting those losses. He also admitted to specific details of his scheme, which included operating the company under materially false pretenses while claiming that client money was held in trust and that TSPM was thriving financially.
The case was investigated by the FBI and the Oregon Real Estate Agency and prosecuted by Assistant U.S. Attorney Nancy M. Olson.