LV securities firm pays scam victims

Monday, Oct. 30, 2000 | 11:29 a.m.

CARSON CITY -- A securities firm based in Las Vegas has returned more than $1 million to six Nevadans who were the victim of an investment scam, Secretary of State Dean Heller said today.

The company, WMA Securities, Inc., also paid $100,000 to the state in administrative penalties and investigative costs.

The securities division in the Secretary of State's Office charged that WMA failed to supervise Robert M. Wagner, a sales representative from September 1996 to January 1998.

Wagner sold investments that were not products of the company, were outside the scope of his license and not properly registered with the state.

Recommendations were made to customers to invest in securities in QuikSeed LLC, QuikSeed II and Maxwell International Holdings.

Wagner allegedly told the investors the money would be used in real estate ventures or to purchase medical equipment to be leased by doctors and dentists. And the investors were promised a return of 7-11 percent or more and monthly interest payments on their investments.

Heller said the money, instead, was used to pay interest and to return principal investment funds to prior investors and to pay a portion of a settlement from a California civil suit in 1996 for breach of contract and fraud.

The state license of Wagner has been revoked, and he is barred from association with any broker-dealer or investment adviser.

Criminal charges were filed against Wagner and Nathan Torosian, founder and president of Maxwell International. Torosian was Wagner's partner in the scam.

Wagner surrendered to Metro on Sept. 19. Torosian was arrested Sept. 27.

Heller said both men face numerous felony charges of securities fraud, selling unregistered securities, transacting business as an unlicensed sales representative, racketeering and crimes against a person 65 years of age or older.