Cache couple is accused of scam

The Utah Division of Securities said Thursday that an order to show cause has been entered against a Cache County couple accused of bilking nine people of $596,000 in a fake stock scam.

The division is seeking an order forcing Bruce W. and Nelly Anderson and their released companies to cease and desist fraudulent securities dealings in Utah and pay fines totaling $1.2 million for securities fraud, it said.

The division said an investigation indicated the Andersons conned nine Utah investors between December 2000 and November 2003 for phony stock in ATFG, Lite Tek, Impact and AMRG. The Andersons offered investors a base cost of 25 cents to 50 cents per share and indicated investor money could increase 10 times in value and would be used to develop several projects.

The projects involved creating a super capacitor that would enable electric cars to run a week at a time without a charge, advanced fiber optics that would speed up communications, a process that would turn used tires into electricity and a machine that turned garbage into railroad ties and building materials, the division said.

One set of investors sold their home to Bruce Anderson in exchange for cash and shares in one of his companies. Investors were told they could get a portion or all of their money back anytime after they turned over their deposits, the division said.

The order alleges that Bruce Anderson further conned investors by telling them that the city of Logan was helping the Andersons find land to establish their businesses.

To date, none of the investors have received a return on their investment or a refund of their money from Anderson, the division said, adding that he was not licensed to sell securities and did not disclose to investors that he faced prior federal tax liens and judgments.