The former owner of the now defunct Property Network Ltd. has pleaded guilty to felony theft, admitting in court Thursday that he closed shop in 2009 with the intent to deprive clients of funds.
Robert Marlowe Smith pleaded guilty to first-degree theft, a class B felony, before 3rd Circuit Court Judge Elizabeth Strance in Kealakekua. Strance slated his sentencing for 10 a.m. Dec. 16. Smith’s trial was to begin Tuesday.
“I knew I did wrong. There’s no doubt in my mind. I’m not saying I’m innocent. I was wrong all along. There was times that I could have done something to get out of it, but I didn’t and I regret those times,” Smith said during his change of plea hearing. “Up until December 2008, I had no intention of depriving anyone. At that point in time I did intend to disburse the funds, but when I realized my business couldn’t survive another year, I did intentionally intend to deprive them.”
Smith pleaded guilty to the felony offense in exchange for a plea agreement that calls for four years probation with conditions that he serve one year in jail, 175 days of electronic monitoring and house arrest, and perform 200 hours of community service. He must also pay restitution to Hawaii County totalling $3,921.79 to cover extradition costs.
As for restitution to the approximately 80 victims, the plea agreement stipulates he pay $10,000 at the sentencing hearing. Additional restitution will be determined at a later date.
Deputy Prosecuting Attorney Kauanoe Jackson said all of the victims in the case were contacted and “most” of them agreed to the plea arrangement.
Smith disappeared in early 2009 after notifying clients Feb. 15, 2009, that he would be closing the business and within 60 days dispersing their funds. The latter did not occur, Jackson said during the Thursday hearing.
He was indicted on one count of first-degree theft in April 2012 and a bench warrant was subsequently issued. He was eventually located in March 2013 in Oregon and extradited back to the Big Island to face the theft charge. He pleaded not guilty March 27. He has been held without bail since then at Hawaii Community Correctional Center.
Robert Smith and Dennise M. Smith opened Property Network in June 1991 in Alii Sunset Plaza. The brokerage company, which dissolved March 1, 2009, dealt with sales, rentals, leasing and exchanges of residential, investment and commercial properties.