LV man arrested on charges of security fraud

Friday, June 5, 1998 | 4:27 a.m.

CARSON CITY -- A Las Vegas man was released on a $24,000 bond Friday after his arrest on charges of security fraud and bilking a couple out of $70,000.

Dion Brozan, 50, appeared today before Las Vegas Justice of the Peace Douglas Smith, who set the bail and ordered him to appear July 6 for another hearing.

Brozan was arrested Thursday by agents of the state attorney general's office at a Las Vegas casino where he works and charged with eight felony counts involving an import-export business called MEI World Industries.

Deputy Attorney General Matthew Gabe said a second man Robert Friend, 40, is being sought and is believed to be in Kirkland, Wash., his hometown.

The complaint said Brozan and Friend told the couple, who were not identified, that MEI imported shoes and marble from China and then sold them in the United States. In 1994, the couple initially invested $20,000 with a promised return of 21.75 percent and then another $50,000 at a 25.5 percent return. They received a corporate note due in one year.

When the couple sought the payoff in 1995, they found the business closed.

Brozan and Friend are accused of securities fraud, obtaining money under false pretenses, failing to disclose material facts to investors and not being licensed to sell securities.

The charges are a result of an investigation by the securities division of the secretary of state's office. Brozan could face up to 42 years in prison and fines if he is convicted of all counts.

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