Associated Press - October 21, 2009 7:54 PM ET

BOISE, Idaho (AP) - The president of Boise-area real estate company DBSI Inc. enriched himself while misleading investors about the financial state of his firm, according to a court-appointed examiner's final report.

DBSI Inc. and its president, Douglas Swenson, sought bankruptcy protection for 180 of the company's nearly 800 associated companies in November 2008.

A subsequent lawsuit by the state of Idaho alleging "sophisticated investor fraud" resulted in a U.S. Bankruptcy Court judge in Delaware appointing an examiner to probe more than $2 billion in DBSI transactions.

Investigator Joshua Hochberg wrote this week that Swenson's "marketing claim that 'no investors had ever lost money' was...illusory and reflected that newly raised investor funds were being used to pay off existing investors."

Hochberg says Swenson and other DBSI insiders "created a misleading financial picture" and "distributed significant amounts of money to themselves."

DBSI's lawyer, Tom Banducci, didn't immediately return a phone call Wednesday.

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