Investors to get some money back

By Donna Hales
Phoenix Staff Writer

November 10, 2007 12:11 am

— Most of those who invested in an alleged pyramid scheme operated by two Wagoner men will get 41 percent of their money back, an official said Friday.
Phillip Raglin and Joseph Layne face 118 felony counts of obtaining money by false pretenses. Officials alleged they sold memberships in Raglin Industries LLC although the stock was not registered and they were not licensed to sell stock.
The state Department of Securities alleged Raglin and Layne were operating a Ponzi scheme, a pyramid scheme in which investors are promised high returns but are paid through new investments.
Checks totaling about $365,000 were mailed to the investors Friday, said Oklahoma Department of Securities attorney Patty LaBarthe.
LaBarthe said the money Raglin and Layne received for memberships went for a lavish lifestyle for Raglin, including a new house, several Lexus vehicles, a Mercedes vehicle and other luxury items.
She said the department found none of the money invested. The department sought and got a freeze on Raglin’s and Layne’s funds, as well as Raglin Industries funds.
There were hundreds of claims to go through, LaBarthe said. A few more claims are being pursued and when they are resolved there possibly could be some more money distributed, she said.
“We’ve done this all ourselves — no attorney fees,” she said.
Also, the department didn’t ask the court to appoint a receiver, so nothing was billed out of the investors’ money, LaBarthe said.
“That’s unusual,” LaBarthe said. “Most of the time we appoint a receiver.”
Raglin and Layne were barred earlier this year from selling additional membership interests in Raglin Industries LLC.
Both men are scheduled for district court arraignments Nov. 14 in Wagoner.
Reach Donna Hales at 918-684-2923 or Click Here to Send Email