LV man guilty of securities fraud

Friday, Sept. 17, 2004 | 10:53 a.m.

Las Vegas resident Lewis Eslick has pleaded guilty in federal court to securities fraud and tax fraud.

He is facing up to 20 years in prison and $5 million in fines for the securities charges and another $500,000 on the tax charges.

Court records said that Eslick created shell companies between 1990 and 1996 and later associated with a stock promoter who filed false documentation for the shell companies, allowing them to be traded on the open markets.

Court records said that Eslick made at least $1.2 million through the stock sale. He also allegedly received $300,000 in finders fees for finding buyers, and he failed to report that money as income, a statement from the U.S. Attorney's Office said.

That statement also said Eslick's plea is the latest development in lengthy investigation of Las Vegas stock promoter Peter Berney. The statement said a group working with Berney created and/or sold more than 60 shell companies for proceeds in excess of $35 million.

Five individuals in that scheme were indicted in 2003 and await a Jan. 18 trial.