Michael Schubarth, former owner of High Desert Financial in Minden, has been convicted of embezzlement and theft by false pretenses.
Schubarth, 55, was charged with promising a Las Vegas woman a refinancing loan upon payment of a refundable $2,500 fee. After receiving the money, prosecutors said Schubarth kept the money, ended communications with the woman and did nothing to obtain the loan.
In addition, he was charged with embezzling more than $15,000 from a builder's trust account. The contractor learned of the crime after he was told there were insufficient funds in his account to make payments.
Most of the money was returned after the Financial Institutions Division and attorney general's office froze High Desert Financial's assets.
Attorney general George Chanos said the potential penalty is 10 years in prison on each account. Schubarth's sentencing is set for Dec. 19 in Douglas County District Court.