Men found guilty in stock scheme

Friday, Dec. 24, 1999 | 12:54 p.m.

Federal prosecutors had alleged that Keith Shwayder of Denver and accountant Kevin Orton of Salt Lake City paid bribes to stockbrokers to persuade them to recommend the stock of Las Vegas-based Teletek Inc. and its subsidiary, United Payphone Services Inc.

Prosecutors said bribes were paid in cash and stock.

Shwayder is a former Teletek executive, and Orton served as an outside accountant for the company.

After a nearly two-month trial, jurors on Thursday found each man guilty of racketeering, racketeering conspiracy, conspiracy and multiple counts each of money laundering, securities fraud and wire fraud.

The jury ordered Orton to forfeit $200,000 and Shwayder to forfeit $414,334.

U.S. District Judge Philip Pro will sentence the two men on April 14.

After the first month of testimony, a third defendant, Michael Swan of Las Vegas, pleaded guilty to all 72 counts against him.

The case was one of three related indictments a federal grand jury returned in November 1996. The indictments alleged bribery of stockbrokers in 10 states and fraudulent issuance of Teletek and United Payphone stock between November 1991 and December 1995.

Almost three dozen people have pleaded guilty in connection with the scheme. A Las Vegas jury convicted two others, Florida stockbrokers Robert Orkin and William Jones, in May 1998.