Thursday, November 13, 2008

Montana Couple Fined $1+ Million For Investment Fraud Scheme

Gordon Walters and Ann Walters, of Roundup, Montana, were fined $1.1 million and ordered to pay $280,654 in restitution to investors they bilked in a fraudulent investment scam. The Walters' were the owners of Cascade Water Holdings and Cascade Exploration, Inc. for which they sold fake bonds claimed to be backed by the government. Two other defendants in the case had previously settled with the state. Danny Kegel settled in 2007 and agreed to a $5,000 fine and a permanent ban from the securities industry in Montana. Calvin Statelen also settled in 2007 and agreed to a $10,000 fine, 500 hours of community service and a permanent ban from selling securities in Montana. Both agreed to cooperate in the case against the Walters.

Read the state auditor's announcement here.

Read the story here.

State Auditor John Morrison is quoted in a statement as saying, "This type of scam is the reason that investors should always be wary and check the facts before investing." Good advice. The companies were not registered to issue securities legally.

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