The state Securities Division is looking into complaints by investors of Soft-One Corp., an Orem software company that also has defended against lawsuits brought by its vendors.
Some two dozen investors are trying to get Soft-One and its chairman, Terry Stephenson, to repay their investments.A spokesman with the Securities Division could not confirm an investigation is under way, but the company said it is cooperating with the division to satisfy its obligations.
In a written statement, the company said it will pay those who provided money for the company's computer tutorial program.
Cortney Winger, a Springville resident, won a summary judgment against the company in 4th District Court in December but is waiting like other creditors for his money.
He claimed in his lawsuit, filed in August, that he invested after he was approached by Grant Mills, a business associate of Stephenson, in 1995.
The company was offering, in return for Winger's $5,500, a $2.50 royalty from each CD-ROM software package sold until Winger received $11,000. After that, the royalty was to be cut in half. Stephenson guaranteed the $11,000, the lawsuit claimed.
The software was Class Act, a multimedia interactive training program for CorelDRAW, CorelCHART, CorelMOVE, CorelTRACE and CorelPHOTO-PAINT.
With an assurance that there were 1,000 copies of the program on back order, Winger agreed to invest in the company and signed an agreement in March 1995.
Shortly after the product was launched, Winger received his first royalty check, for $30, and nothing more after that. "I pushed enough buttons to get a check for 3-4 months' royalties, but since then I received no royalty payments," he said.
The last royalty check was for $510, received on March 29, 1996.
The lack of payment almost cost Winger his new home, he said. He had been counting on the royalties for the down payment.
E. Kent Winward, an Ogden attorney representing Utah County resident John Starrs, said he is in the process of foreclosing on a home owned by Stephenson's family trust to get payment on a $110,000 judgment.