LV man arrested in Costa Rica on fraud charges

Kevin Rademacher and Timothy Pratt

Tuesday, Feb. 10, 2004 | 11:21 a.m.

Las Vegas businessman Larry A. Stockett was arrested Friday on criminal fraud charges in Costa Rica, local and international authorities said Monday.

Stockett's arrested was triggered by an August criminal indictment issued by a federal grand jury in Las Vegas, Costa Rican authorities said in a statement. The indictment, the statement said, relates to an alleged $1.2 million stock market scheme.

Natalie Collins, a spokeswoman for the U.S. Attorney's Office in Las Vegas, said the arrest was based on charges that include securities fraud, money laundering, obstruction of justice and wire fraud. Prosecutors declined to reveal details about the case or whether it was tied to an earlier civil stock fraud case in Las Vegas.

Stockett now is awaiting extradition proceedings in the Costa Rican capital city of San Jose. Authorities said that process could take 22 days to three months. Collins said the extradition process is being handled through the U.S. State Department.

The recent arrest is just the latest legal problem for Stockett. The Securities and Exchange Commission accused him of civil fraud in an April 2002 lawsuit.

Stockett, the owner of defunct cement plant operations, The S.I.N.C.L.A.I.R.E. Group Inc., its affiliate Hightec Inc. and its subsidiaries U.S. Cement Inc. and Basalt Fiber Industries Inc., was accused by the SEC in U.S. District Court of disseminating misleading financial statements about the companies to induce investors to buy Hightec stock. The SEC suit said Stockett defrauded investors out of $1.4 million.

On Dec. 8, Federal Judge Philip Pro granted the SEC's motion for summary judgment, which will likely place a permanent injuntion against Stockett. Court records show that the order was granted after Stockett and his attorney failed to respond in opposition to the SEC's request.

In a proposed final order, SEC attorneys have requested the disgorgement of $1.4 million in gains as well as $471,000 in interest. The judge also was asked to consider a $120,000 civil penalty.

Pro has not yet signed a final order.

Stockett's attorney Declan O'Donnell of Castle Rock, Colo., could not be reached for comment.