PROVO — A Sandy man involved with three others in an investment scheme that bilked more than $2 million from investors in Utah and Salt Lake counties was sentenced Wednesday to up to five years in prison.
Fourth District Judge Donald Eyre ordered Richard A. Higgins, 52, to prison on two convictions of being an unregistered securities agent and one conviction of attempted securities fraud, all third-degree felonies. A hearing was set for April 5 to determine how much Higgins must repay investors.
Last year state prosecutors charged Higgins; David B. Pilling, 48, Draper; Robert C. Pilling, 51, Sandy; and Roger Stokes, 41, Murray, with running a scam that promised investors a 60 percent annual return through a high-yield bank trading program. Investors were told their return was guaranteed by a Lloyd's of London insurance policy.
Higgins and the Pillings were each charged with more than 20 felonies for soliciting investments through a company called R&D International. Investors, one a man from Portugal who invested $2 million, were told to wire funds to accounts in the Cayman Islands or the Bahamas. Some money was even sent to a New Mexico man who had been banned from dealing in securities, investigators said.
In December, Higgins pleaded guilty to the three reduced charges and promised to testify against others charged in the case. Prosecutors dismissed 19 additional counts. Investigators said money collected in the scam was funneled through an account held by Higgins.
At Higgins' sentencing Thursday, several victims told of how they lost homes, filed bankruptcy and suffered marital problems because of their lost money. Some felt their chances of being repaid were greater if Higgins stayed out of prison.
"The impact in this case was pretty major," said Utah Division of Securities attorney David Wayment.
In January, Stokes pleaded guilty to attempted securities fraud and being an unregistered agent. He was sentenced to probation. State investigators said Stokes attempted to solicit funds from two undercover agents, but took no money from investors. He also will testify in the case.
A preliminary hearing is scheduled for March 20 for the Pillings. However, Wayment said Robert Pilling is expected to also accept a plea bargain offered by prosecutors. David Pilling is expected to proceed with his preliminary hearing.
Wayment said if the Pillings are convicted, state agents will ask the Immigration and Naturalization Service to deport both men, who are Canadian nationals.