Former Lake Tahoe company president sentenced to 20 years

Saturday, March 6, 2004 | 9:52 a.m.

RENO, Nev. - The former president of an Incline Village company was sentenced to 20 years in prison for a hot tub scam that bilked at least 19 customers out of thousands of dollars.

Todd Surgeon, former head of American Leisure Products, also was ordered to pay $55,000 in restitution Friday by Washoe District Judge Connie Steinheimer. He'll be eligible for parole after serving nearly seven years in prison.

Surgeon told the judge that he "hated hot tubs" and only launched the company to gain name recognition. He said his goal was to run for president of the United States in his 40s.

Surgeon, 34, was indicted on theft charges by a grand jury after being accused of accepting full payment for hot tubs from Incline Village customers but failing to deliver.

"He advertised in local papers indicating he had great deals and attracted victims either through the ads or during parking lot sales," Deputy District Attorney Kay Lyon said.

Most of the customers never received a hot tub and were unable to get their money back, Lyon said.

Surgeon also was convicting of engaging in the same operation in neighboring Placer County, Calif., on Lake Tahoe's north shore.

He was convicted in U.S. District Court in Las Vegas in 2001 of securities fraud, and sentenced to two to five years in prison.

He now is expected to face racketeering charges for similar acts in Oregon, Lyon said.

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Information from: Reno Gazette-Journal