*******OFF TOPIC*******
According to documents subpoenaed by FBI agents, WRI Holdings
entered into an agreement with Gary Walters to raise $1 million for
his record company, Walters Records Inc. According to the affidavit,
WRI Holdings made an offering of $5 million worth of unregistered
stock in the company.
But according to the affidavit, only about $1 million of the
money that was raised would be contributed to making records, with
the
remaining 80% going toward sales commissions to WRI Holdings.
The
affidavit said investors were misled by written scripts that projected
a return of 450%.
Seized documents show that 90 investors contributed more than $1
million between June and December of last year, according to the
affidavit.
Watson is accused of helping Rawlings, Courtney and Aro launder
the profits, according to the FBI affidavit based on interviews with
former employees of the companies and victims of the alleged scams.
Watson, who was in charge of day-to-day operations at WRI
Holdings, would issue company checks to various individuals and
have
those individuals cash the checks and turn the proceeds over to him,
the affidavit says. He then would turn over the cash--allegedly
hundreds of thousands of dollars--to Rawlings, Courtney and Aro,
leaving no trace of the payments, the affidavit alleges.
Watson was paid a commission of 7% to 10% of the cash,
prosecutors contend.
Utah securities officials in April ordered Rawlings, his brother
Douglas and other sales representatives from Skyline Entertainment to
stop calling consumers in that state. According to the order, which
followed an undercover investigation, Rawlings identified himself as a
"co-executive producer" for the firm and said Skyline had lined up
Keanu Reeves to star in a film titled "Great Jones Street." Utah
authorities said there was no such agreement.
According to documents subpoenaed by FBI agents, WRI Holdings
entered into an agreement with Gary Walters to raise $1 million for
his record company, Walters Records Inc. According to the affidavit,
WRI Holdings made an offering of $5 million worth of unregistered
stock in the company.
But according to the affidavit, only about $1 million of the
money that was raised would be contributed to making records, with
the
remaining 80% going toward sales commissions to WRI Holdings.
The
affidavit said investors were misled by written scripts that projected
a return of 450%.
Seized documents show that 90 investors contributed more than $1
million between June and December of last year, according to the
affidavit.
Watson is accused of helping Rawlings, Courtney and Aro launder
the profits, according to the FBI affidavit based on interviews with
former employees of the companies and victims of the alleged scams.
Watson, who was in charge of day-to-day operations at WRI
Holdings, would issue company checks to various individuals and
have
those individuals cash the checks and turn the proceeds over to him,
the affidavit says. He then would turn over the cash--allegedly
hundreds of thousands of dollars--to Rawlings, Courtney and Aro,
leaving no trace of the payments, the affidavit alleges.
Watson was paid a commission of 7% to 10% of the cash,
prosecutors contend.
Utah securities officials in April ordered Rawlings, his brother
Douglas and other sales representatives from Skyline Entertainment to
stop calling consumers in that state. According to the order, which
followed an undercover investigation, Rawlings identified himself as a
"co-executive producer" for the firm and said Skyline had lined up
Keanu Reeves to star in a film titled "Great Jones Street." Utah
authorities said there was no such agreement.
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