A Salt Lake man has been charged with security fraud in the promotion of stock for a company called Resorts Plus Inc.
Phillip Gregory Wagers was charged with one count of security fraud in connection with the May 28, 1987, offering of stock in Resorts Plus. He was also charged with one count of failure to file a personal income tax return for not filing a 1987 return.The charges were filed in U.S. District Court Wednesday. Assistant U.S. Attorney Stewart Walz helped prepare the charges but had little information about the company.
"I don't know if it's a Salt Lake company or not, and I don't know if it is still selling stock," he said.
According to the charges, Wagers is a stock promoter who sells public shell corporations that carry on little or no business activity. Wagers and others revived Resorts Plus, Inc. and used fictitious shareholders lists to encourage the sale of the stock.
The charges said Wagers engaged in "pinking" - the practice of buying and selling stock to create a false impression of active trading that lures others to purchase the stock - to sell Resorts Plus stock.
The purchase and sale of Resorts Plus stock was artificially manipulated to a group with the intent to raise the price of the stock so the group could profit, the charges said.
The identity of the group was hidden by the use of other people's names in the purchase and sale of the stock, the charges said.
The charges said Wagers fraudulently revived Resorts Plus, employed schemes and artifices to defraud and obtained money and property through untrue statements and omissions.