Defendant To Serve 12 Years In Securities Fraud Scam

Press Release, Jul 26, 2006

LAS VEGAS -- Attorney General George Chanos announced today that District Court Judge Joseph T. Bonaventure sentenced Isak “Cody “ Kruger to serve 12 years in Nevada State prison. Kruger was also ordered to pay a fine of $50,000 and restitution in the amount of $784,895.20 to victims of a securities fraud scam targeting primarily senior citizens throughout Nevada.

 An investigation by the Secretary of State’s Securities Division revealed that Kruger and other individuals organized and established a bogus joint venture investment program entitled “The Neutral Trade Organization,” which promised investors they would earn profits from shares in 300 trade centers that would be built in 50 different countries throughout the world. Between February 2000 and December of 2003, Kruger sold unregistered securities to numerous victims throughout the Western states, most of whom were senior citizens. The elderly victims collectively invested hundreds of thousands of dollars in the scheme based on fraudulent representations made by Kruger and other defendants. None of the trade centers were ever built and Kruger used the bulk of the investment money for personal expenses, including investments in race cars, travel, and gym memberships; all without the knowledge of the elderly victims.
 
Kruger’s sentence was based upon a guilty plea to five felony counts of securities fraud against persons 60 to 65 years of age or older. Each count included an enhanced penalty due to the victims ages, which means in addition to the minimum term for each count, the defendant must serve an additional equal term to run consecutively. Read more at ag.state.nv.us