5 indicted in fraud scheme costing $26 million
azcentral.com | 5/23/08 | Michael Kiefer
They told investors that their production company could stage blockbuster concerts that would bring high interest returns. But according to the Arizona Attorney General's Office, they were really running a Ponzi scheme that bilked wellheeled Arizonans out of more than $26 million.
Four men and one woman, mostly from the Phoenix area, were indicted this week on 204 criminal counts, including fraud and securities fraud, theft, money laundering and sale of unregistered securities and transactions by unregistered dealers or salesmen.
All face significant prison time; one of them up to 56 years. Indicted were: William Galyon, 56, Alfred Olsen, 67, and Nova Michaels, 57, of Phoenix, and Robert Rosepink, 57, of Scottsdale. The fifth defendant has not yet been identified because he had not yet been served with an indictment.
According to the Attorney General's Office, Galyon and his unidentified partner ran a Tucson company called Cal Productions and sold notes promising high interest rates on profits from concerts by major acts that they would promote.
Few shows were staged, and none of the caliber that had been promised. Some investors lost as much as $5 million. Galyon is charged with 202 counts.
Rosepink, an attorney who specialized in estate planning, was allegedly paid nearly $1 million in commissions for reeling in investors. He is charged with 102 counts. Olsen, also an attorney, helped recruit investors as well, while misrepresenting finances of another company owned by Galyon, according to the indictment. He is charged in 52 counts.