Security Seller Admits To Fraud
A Buhl, Idaho, man pleaded guilty Wednesday to racketeering and agreed to pay more than $850,000 in restitution to victims around the state.
Lon Montgomery, 33, admitted to 44 incidents of securities fraud or selling securities without a license, according to the state attorney general’s office.
The incidents occurred over a six-year period, during which Montgomery sold investments in his business and promised unrealistically high rates of return, the attorney general’s office said. Montgomery did not have a license to sell securities in Idaho.
Thirteen North Idaho residents who collectively lost more than $100,000 were among Montgomery’s victims.
As part of the plea agreement, Montgomery will avoid prison time if he pays restitution to his victims.
Montgomery was arrested in January on charges he defrauded seven couples or individuals in Bonner, Boundary and Kootenai counties, redeemed the stock for promissory notes, then declared bankruptcy.