SALT LAKE CITY, Utah (ABC4 News) – A 92-year-old former Utah dentist will spend 60 days in jail after investigators said he fraudulently obtained $62,500 in a business scheme in 2015.
According to charging documents, Einar Keith Lignell was charged with four counts second-degree felony securities fraud.
Investigators said Lignell sold $62,500 worth of ‘investment opportunities’ to several people telling them he was building a residential redevelopment called the “Allen Park” project.
Documents state the investment opportunity Lignell sold was in contract form and investigators said he “either directly or indirectly made untrue statements of material fact and/or omitted to state material facts necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading.”
Documents further state Lignell told each of the four investors that he had already had acquired $300,000 from other investors and only needed $60,000 to close on the “Allen Park” property and they had an opportunity to “quadruple” their investment in 1 1/2 to 2 years.
Lignell held several investor meetings where he gave ‘updates’ about the project. He told the investors the property was currently occupied by hoarders and they needed to clear them from the property before closing on the sale, according to documents.
Documents state there was never any “Allen Park” land for sale, and the entire project was fabricated. Lignell has paid back over $20,000 of the original $62,500 invested.
Lignell was convicted of three counts of securities fraud by a jury in June and was sentenced to 60-days in jail on Friday. He faces 1-15 years in prison if he violates his 3-year probation or fails to pay the victims restitution.
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