A Utah County man has admitted to defrauding clients of more than $4.9M through a scheme involving the sale of investments in e-commerce stores.
Kole Glen Brimhall, 27, of Orem, Utah, pleaded guilty to securities fraud after admitting he lied to investors and fraudulently sold investment contracts without a license.
According to court documents and admissions made at the change of plea hearing, Brimhall sold the e-commerce stores to purchasers as a passive investment and promised that the stores would make consistent, predictable, monthly returns.
However, Brimhall failed to disclose that the majority of the invested funds went directly to Alpha Influence, LLC and then were distributed to sales agents, including himself, for commissions.
The scheme involved approximately 130 clients and netted Brimhall over $4.9M in ill-gotten gains.
Brimhall is scheduled to be sentenced on March 24, 2025, at 8:30 a.m. in courtroom 3.4 before a U.S. District Court Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
U.S. Attorney Trina A. Higgins made the announcement, which was the result of a joint investigation by the Utah Division of Securities and the FBI Salt Lake City Field Office.
Assistant United States Attorneys Mark Woolf, Brian Williams, and Ruth Hackford-Peer of the U.S. Attorney’s Office for the District of Utah are prosecuting the case.
Related Federal Cases
- David Aldrich, Securities Fraud Scheme, California 2024 · Utah
- Wayne LeMar Palmer, Wire Fraud, Utah 2024 · Utah
- Marc E. Bercoon, Securities Fraud, Georgia 2011 · Utah
- Keith Eric Jergensen, Investment Fraud, Utah 2024 · New York
- Ronald Wayne Leavitt, Wire Fraud and Money Laundering, Utah 2024 · California
Key Facts
- State: Utah
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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