Milton R. Bloomquist, Layton, pleaded not guilty Wednesday to two federal felonies in connection with an apparent securities scam.
Trial will be held before U.S. District Judge J. Thomas Greene, probably within two months.Bloomquist is accused of using the instruments of interstate commerce to deal in unregistered securities. Assistant U.S. Attorney William Ryan, the prosecutor, said he guaranteed high returns on promissory notes, which are regarded as securities.
Earlier, the U.S. Securities and Exchange Commission won a permanent injunction against Bloomquist, whom it accuses of owing $2.5 million to clients in an investment scam.
SEC officials believe Bloomquist obtained money from more than 100 investors in Utah, Idaho, Kentucky and other states. They said he traded in futures and told investors they could earn 24 percent to 36 percent interest per year.
In the SEC's civil suit, several affidavits were filed from alleged victims of the scheme, some showing connections with Bloomquist through church activities. The agreement in which Bloomquist accepted the injunction says he does not admit or deny the allegations.
"Bloomquist consistently lost substantial sums of money through his trading activities. The amount of said losses is in excess of $1.1 million," the suit says. A week ago, Chief Judge Bruce S. Jenkins approved the settlement of that action.