Prison time results from stock fraud case

Friday, March 9, 2001 | 12:14 p.m.

Three men have been sentenced to a total of nearly 23 years in prison for their roles in a multimillion-dollar securities fraud scheme in Las Vegas.

Kevin Orton, a former certified public accountant at Teletek Inc. and United Payphone Services Inc., on Wednesday got the longest sentence -- nine years in federal prison -- for his conviction on racketeering and conspiracy charges.

The case involved bribes paid by the two companies to stock brokers and stock promoters throughout the country between 1991 and 1995, U.S. District Attorney for Nevada Kathryn Landreth said. Investors were defrauded when they did not receive unbiased advice regarding the investments, she said.

Also getting prison time were Keith Shwayder, a former chief executive officer at Teletek, who was sentenced to seven years, three months, and Michael Swan, former CEO of both companies, who pleaded guilty to 72 counts, including money laundering and wire fraud and was sentenced to six years, eight months.

Federal Judge Philip Pro also ordered that Swan and Orton pay $2.546 million in restitution to defrauded investors and Shwayder to pay $1.516 million.

The three were indicted by a federal grand jury in November 1996.