SALT LAKE CITY — A man who tried to swindle the Osmond family out of millions of dollars nearly three decades ago was indicted Wednesday for allegedly touting "ultra-secret" technology to defraud another wealthy Utah family.

Jose Arturo Riffo, 67, of Salt Lake City, faces wire fraud and money laundering charges in U.S. District Court. Also charged in the seven-count indictment is Alan C. Monson, 69, of Pleasant Grove.

Riffo claimed to own companies that were developing a data storage device called a "crypto card" that would store a person's DNA profile and medical records on a chip the size of a credit card, according to the indictment. The cards were represented to have their own operating systems, be automatically powered, encrypted, indestructible and last 200 years.

Federal prosecutors say Monson, for a commission of $37,500, arranged a meeting between Riffo and Joseph T. Sorenson in 2005 to talk about investing in the company. Sorenson is the son of the late billionaire inventor, real-estate developer and philanthropist James L. Sorenson and an executive in Sorenson Management Group. Joseph Sorenson filed a civil suit against Riffo in 2006.

During several meetings, Riffo told Sorenson he was from one of Italy's richest families, a quantum physicist and nuclear engineer, had turned down a $5 billion offer from Bill Gates and Paul Allen for the technology and a close personal friend of late Church of Jesus Christ of Latter-day Saints leader Elder James E. Faust, according to the civil suit. During a meeting at Market Street Grill, Riffo unlocked a large black bag and pulled out several thick presentation books depicting the "ultra-secret" technology.

Sorenson ultimately agreed to invest $2.5 million in the project.

According to the criminal indictment, Riffo used the money to buy homes and property in Utah and Arizona, three cars and life insurance annuities.

The U.S. Attorney's Office for Utah issued a warrant for Riffo's arrest and sent a summons to Monson. Both pleaded not guilty in federal court Wednesday. Monson was released, while Riffo remains in custody pending a detention hearing Monday.

Riffo came to Utah from Chile in the early 1980s and was granted political asylum.

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In a case involving the Osmond family, a federal judge sent him to prison in June 1984, saying Riffo had a "fanciful imagination."

According to a 1983 federal indictment, Riffo tried to defraud the performers, who allowed him to live on their property rent-free, by telling them he owned a Swiss bank and a Chilean titanium mine and had the means to buy an interest in the Osmond Studios in Orem.

The false representation allowed him to get a $46,000 loan from the Osmonds and $7 million in promissory notes, which he tried to sell. In a plea bargain, Riffo pleaded guilty to one count of mail fraud in the case for providing false financial information on a loan application. He was released from prison in August 1985.

e-mail: romboy@desnews.com

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