CEDAR CITY (AP) -- Four months after the Utah Department of Commerce ordered a halt to selling investments in Oracle Film, company President David Evans and employee Gary Messer have been arrested.
Evans, 43, and Messer, 42, were arrested Tuesday and charged with 38 counts each of securities fraud. Officials said a third arrest may follow.Commerce officials said in July that Cedar City-based Oracle Films had illegally been selling shares in the "The Latch Key Kid" film since 1996 without having a securities license. The company was ordered to cease and desist the sale of any investments.
Evans said at that time that he was planning to continue work on the film and hoped to have the order removed so the company could raise funds.
Police detective Kelvin Orton said $300,000 was solicited from 38 people for production of the film, but the money was spent as soon as it was collected and no film has been produced.
Orton said he expects to arrest a third person soon.