LAS CRUCES - A former Las Cruces building contractor who allegedly ran a fake investment scheme here has agreed to pay $37,000 in restitution, days before his trial was set to start.

Burdette Dale Obermeyer pleaded no contest to two counts of misdemeanor embezzlement, and the 3rd Judicial District Attorney's Office agreed to dismiss 10 other charges of embezzlement, violation of the New Mexico Securities Act, sale of unregistered securities and securities fraud, as part of the Jan. 31 plea deal, according to court records filed last week.

A no-contest plea means the defendant does not admit guilt but acknowledges that if the case were to go to trial, he or she likely would be convicted, and is therefore not contesting the charges

"The reason for the plea agreement was, the state felt it was in the best interest of the victims to get as much money in restitution up front, considering (Obermeyer) wasn't a candidate for prison; he had a clean record," said New Mexico Regulation and Licensing Department spokeswoman Bernice Geiger.

Obermeyer, who was never jailed and now lives in Missouri, has already paid $15,000 in restitution to his three victims, one of whom was owed $2,000, one of whom continues to be owed $10,000 and one of whom continues to be owed $12,000. Obermeyer will remain on probation until his three victims are fully repaid, Geiger said.

Obermeyer was alleged to have defrauded the three men by promising returns of more than 50 percent on their money, according

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to the New Mexico Regulation and Licensing Department, which was jointly prosecuting Obermeyer with the district attorney's office.

He could have faced almost 40 years in jail had he been convicted on the original 12-count indictment, authorities said.

In 2005, Obermeyer appeared on a local radio station and advertised his scam as an investment opportunity with a local Las Cruces business. Investors were promised their money would be pooled to purchase a two-year certificate of deposit from a local bank, which would then be used to secure a bank loan for residential construction by Obermeyer 's company, ABQ Builders.

Obermeyer promised not only to return backers' original investments with interest, but also that they would share in the profits from housing construction sales. But instead of using the funds to buy a bank certificate of deposit as planned, prosecutors said Obermeyer spent the money on his own business and personal expenses and left the state.

Ashley Meeks can be reached at (575) 541-5462.