Repayment in securities fraud will stop jail time

Friday, Sept. 1, 2000 | 11:21 a.m.

CARSON CITY -- A Las Vegas man has agreed to repay $170,420 within a year to the people he bilked in three schemes.

Peter Cobo pleaded guilty Thursday before District Judge Sally Loehrer to three felony counts of securities fraud.

Attorney General Frankie Sue Del Papa said Cobo, under a plea arrangement, will make four quarterly payments of $42,605 beginning three months after his release. If he fails, Del Papa said her office will ask the judge to impose sentence, which could range up to 15 years in prison and a fine of up to $300,000.

If Cobo makes all of the payments and stays out of trouble, he will be able to withdraw his guilty plea to the felonies and plead guilty to three gross misdemeanor counts of conspiracy to commit securities fraud.

Cobo told investors he had inside information that the United States was about to lift its trade embargo on Cuba and he had exclusive rights to buy and distribute Cuban cigars and cigarette tobacco in this country, Canada and South America.

Del Papa said Cobo was also involved in scams in an Internet escort-dating service and a California construction company. He was originally charged with a 21-felony count complaint in July. He has been in jail since Aug. 4.

The attorney general said the three guilty pleas mean, "Either he pays all the money that he scammed Nevada investors out of within one year, or he faces significant prison time."