Long-sought suspect in securities fraud arrested at airport

Friday, Dec. 10, 2004 | 9:49 a.m.

Investigators with the Nevada secretary of state's office arrested a man at McCarran International Airport on Tuesday who had been wanted since 2002 for securities fraud.

Authorities said Stephen Primak had been hiding in Panama to avoid eight felony counts of securities fraud, and one count each of sale of an unregistered security, transacting business as an unlicensed broker and theft. Francis Arenas, the state Securities Division's chief of enforcement, said Primak is accused of scamming eight investors of $113,000 in a 1999 stock purchase scene involving his firm, Casino Development Association. He could be charged with additional offenses because his victims were 65 or older. The oldest was a 92-year-old man, Arenas said.

According to an October 2002 criminal complaint, Primak scammed eight investors out of $113,000 in a 1999 stock purchase scheme involving his firm, Casino Development Association, LLC.

Primak told the investors that stock in the association was a private offering that would go public soon. He also claimed that the firm held and owned a license in Antigua and that Marketing Games Management, a Nevada limited liability company, would market the company.

The state alleges that the securities were not registered and that the broker-dealer and sales representatives were not licensed by the state. The state also charges that Marketing Games Management never existed.

Instead of returning any of the money, Primak used investment funds for personal use, purchasing numerous cars, jewelry and clothing.