Two men who allegedly bilked investors of $181,000 have been charged with 15 criminal counts, according to the Utah attorney general's office.
The men, Blake W. Adams and Robert G. Johnson, surrendered to authorities Monday and were released on their own recognizance.A statement issued by the attorney general said the men formed the Johnson-Adams Corp. in Ogden and collected money from investors in 1984 with the promise the money would be doubled within two months. The money was to be used to set up a corporation that would be sold.
Instead of doubling their money, investors were given worthless stock in two companies, according to the statement.
The men were charged with seven counts of securities fraud, seven counts of the sale of unregistered securities and one count of employing an unregistered securities agent.
Utah Attorney General Paul Van Dam said his office is committed to prosecuting frauds and to protecting the state's consumers. The charges came after a yearlong investigation by the Utah Securities Division and the attorney general.
"Our office will continue to investigate potential fraudulent schemes in hopes of deterring others from perpetrating scams on the public," Van Dam said.