Originally Posted Online: March 07, 2013, 9:07 am
Last Updated: March 07, 2013, 9:42 am

Judge refuses new trial for ex-Davenport attorney in fraud conviction

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DAVENPORT, Iowa (AP) - A federal judge is refusing to grant a new trial to a former Davenport real estate attorney who is appealing his fraud conviction.

Judge James Gritzner ruled Wednesday that an FBI agent who testified against Marc Engelmann did violate an order barring witnesses from the courtroom during his 2011 trial. But Gritzner says the agent's presence didn't harm Engelmann's defense.

Gritzner ruled Engelmann will remain behind bars during his appeal because he hasn't raised a substantial legal question about his conviction.

Prosecutors alleged Engelmann helped others carry out a scheme in which they bought properties but told sellers to list a fake, higher price on paperwork, allowing them to receive larger bank loans. The conspirators received kickbacks from sales and didn't pay the mortgages, costing banks $1.2 million in losses.