A federal grand jury Friday handed up five indictments, including a 28-count indictment against a Utah man and his two partners charging them with conspiring to defraud the government through a fraudulent tax shelter.

The indictment charges that Gregory Bloom, 33, Orem; Emmett King, 34, Arizona, and Stephen Fullmer, 41, Riverside, Calif., ran a bogus tax shelter from March 1982 to October 1986 and bilked the government out of more than $400,000.The charges stem from investments made in Video Enterprises of Orem, a company formed by Fullmer and Joseph Peterson, the indictment says.

The indictment says Fullmer and Peterson were the Utah route managers for a video game rental operation in Las Vegas and then started their own company, Video Enterprises of Orem, in 1982.

Fullmer and Peterson talked with Gregory Bloom, a Provo accountant, in late 1982 about raising capital for the enterprise, the indictment says.

Bloom "represented that he had access to hundreds of thousands of dollars from investors who desired tax write-offs and that he could funnel a portion of this money into Video Enterprises of Orem," the 24-page indictment says.

Peterson and Fullmer solicited friends and relatives to "invest" in Video Enterprises of Orem, the indictment said. The amount of the investment would be determined by Bloom, who used a formula based on how much taxes the investor paid in prior years and the amount needed in write-offs in the future.

Ten percent down was required for investments and the money could come from amended tax returns filed for each investor. The returns, prepared by Bloom, would falsely show purchase of assets in 1982, the indictment says.

"This fictitious purchase of assets would entitle the investor to `tax credits' which would in turn offset taxes paid by the investor in the prior years," the court document said. "As a result, (the) IRS would refund to the investor virtually all taxes paid in the prior three years."

Bloom and King, a certified public accountant, would have certain investors back date notes and filed statements for investors that totaled $417,850. The investors in fact were entitled only to $10,933.60, the indictment said.

The defendants face up to five years in prison and fines of $250,000 if convicted of each count.

In separate action, the grand jury also indicted Alberto Toyar-Murrillo, an illegal alien who allegedly re-entered the United States last week after he was deported in March 1987.

Frank Hinojosa was charged with cocaine possession with intent to distribute and possession of an unregistered firearm. Brett Allen Zimmerman and Kevin Karl Kruse were charged with conspiracy to manufacture methamphetamine, or speed. Kruse also was charged with carrying a firearm during a drug operation.

David C. Richards Jr., president of Park City-based David C. Richards and Associates Inc., was charged with failing to turn over income taxes collected from employees.