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SALT LAKE CITY (KTVX) — A federal grand jury has indicted two Utah men accused of running a multi-million dollar fraudulent investment scheme.
Aaron Wagner and Michael Mains are accused of inducing lenders to send millions of dollars to businesses controlled by the two men.
Both Wagner and Mains are charged with the following:
- Four counts of wire fraud.
- One count of conspiracy to commit wire fraud.
- Six counts of transactional money laundering.
- Five counts of money laundering — concealment of wire fraud proceeds.
According to federal indictment documents, both Mains and Wagner siphoned money from investors to their own accounts. The funds given to them by investors were supposed to go to the openings of several chain restaurants. Included in that list of restaurants were the following:
- 10 Dirty Bird restaurants
- 10 Kokonut Island Grill restaurants
- 10 Hello Sugar restaurants
“Wagner represented to lenders or investors that the funds would be used for developing certain restaurants, but in fact intended to use the funds for personal expenses or investments, or to prop up projects for other investor groups (which also included himself as an investor). In all, he brought in more than $40 million from investors,” court documents state.
Documents also say that the two men “diverted $9 million to their own purposes.”
“For instance, they used that money instead to fund down payments to purchase a $4 million second home for Wagner in Scottsdale, Arizona, an $8 million personal airplane for Wagner and Mains, a $4.5 million commercial property to be developed into a nightclub called ‘SWAGS,’ and an $8 million real estate property in Missoula, Montana.”
The pair are accused of spending lavishly to prop up an appearance of financial success, even spinning lies such as Wagner’s alleged story of overcoming obstacles to ultimately play in the Rose Bowl and manage a billion-dollar portfolio — neither of which were true, according to prosecutors.
“[Wagner] would post pictures of his conspicuous spending on his marketing channels, all without disclosing that his exotic cars, personal jets, multimillion-dollar homes and extravagant lifestyle were actually funded by theft,” according to court documents.
Should the two be convicted, prosecutors say they will pursue the forfeiture of: an SR22 aircraft; an $8 million real estate property in Missoula; property in Alpine, Utah; and property in Scottsdale, Arizona.