U.S. District Judge Bruce S. Jenkins has approved the settlement of a federal suit against Milton R. Bloomquist, Layton, accused of taking $2.5 million from clients in an investment scam.
Bloomquist gave a deposition to the U.S. Securities and Exchange Commission on Sept. 1, shortly after he agreed to an injunction against him to prevent fraudulent deals.Based on the deposition and other investigation, the SEC concluded there is no chance of recovering the money. So to wind up the suit, on Wednesday Bloomquist agreed that he would not fight an order to pay, while the SEC waived collecting the money, based on his inability to pay.
SEC officials believe Bloomquist obtained money from more than 100 investors in Utah, Idaho, Kentucky and other states. The suit, filed by the federal securities officials on March 9, claimed that Bloomquist created a fraudulent investment program.
Starting in 1981, the suit says, Bloomquist issued promissory notes that were not registered with the SEC as a security and traded in futures and options on futures. The suit says he told investors they could make 24 percent to 36 percent interest per year.