Former Wellington developer Ziegler awaits sentencing on felony charge

Frederick D. Ziegler is scheduled to appear in Larimer County District Court on April 16 for sentencing on one count of felony theft.

The charge was based on Ziegler’s activities between March 2004 and August 2006 as a principal in ZWZ LLC, developer of the Wellington South-The Knolls subdivision. An arrest warrant issued in April, 2012 listed three counts of Class 4 and two counts of Class 3 felony theft alleging that between 2004 and 2006 Ziegler and ZWZ co-mingled personal and business funds with money belonging to the Wellington South homeowners association. The 11-page document further alleged that Ziegler and ZWZ used HOA funds to pay for improvements on property owned by the developers and that Ziegler withdrew in excess of $54,600 from the HOA account that was never replaced. The Class 3 felonies alleged theft of $15,000 or more and the Class 4 counts alleged theft of $500-$15,000.

At a February 26 hearing, two counts of Class 3 felony and two counts of Class 4 felony were dismissed by Judge Daniel J. Kaup, but Ziegler pled guilty to one count of Class 4 felony, theft of $500-$15,000. Deputy District Attorney Christopher Rossi prosecuted the case and moved for dismissal of four of the five counts because the defendant pled guilty to one count. “Justice would best be served by dismissal of the above,” Rossi said.

A Class 4 felony is punishable by 2-6 years in prison, up to 12 years with aggravated circumstances, three years’ mandatory parole and a fine up to $500,000. The defendant is eligible for a sentence of supervised probation if he makes full restitution on all counts filed in the criminal action and remains law-abiding. Restitution was set at $40,000 subject to offset on a settlement or judgment in Larimer County Court.