Man faces securities fraud trial

New Mexicans invested in alleged promotion of small radio stations

A man accused of defrauding New Mexico investors in the promotion of “mom and pop” radio stations is scheduled to face trial in February, and he is denying the charges against him.

Dain Leslie Schult, who now lives in Georgia, said in a phone interview that finances connected with his company, American Wireless & Entertainment Inc., had been thoroughly audited to ensure compliance with federal security rules.

“All of it was audited by an outside accountant,” Schult said. “It was a case where we had SEC-licensed (Securities and Exchange Commission) auditing firms.”

Schult was indicted by a grand jury in Las Cruces in 2015 on charges of fraud, securities fraud, conspiracy to commit fraud, money laundering and the offer or sale of an unregistered security. The indictment refers to a particular couple who invested $25,000 in the business. He pled not guilty.

Schult is accused of leading investors to believe their money would be used to pay for securities licenses and attorney fees and to fund the IPO of their stock, according to a news release issued by the state’s Securities Division following the indictment. Money from the sale of registered stock was to be used to purchase smaller radio stations around the nation and give them internet access, the release said.

However, Schult instead was allegedly using the investor money for personal expenses and to pay a commission to another party, according to the indictment.

Schult’s criminal defense

attorney, Mario Carreon of Las Cruces, could not be reached for comment.

Chris Dieterich, a Los Angeles attorney who helped review documents for Schult, said it was clear from the company’s “offering documents” that people associated with Schult’s business would get paid.

“He (Schult) is one of the people entitled to get paid,” Dieterich said. “This is not unusual. You don’t invest in a company or startup without understanding that people are going to earn salaries.”

Dieterich also said he doubted the case would be ready for the scheduled jury trial because the state hasn’t provided Schult “with all the evidence against him.”

In response, a state spokeswoman issued this statement: “The New Mexico Securities Division is preparing for a February 2018 trial date, and cannot comment any further.”

Schult ran into more legal trouble in New Mexico last June when a warrant was issued for his arrest in Doña Ana County. He was accused of failing to comply with conditions of his earlier release, and bond was posted.

Schult said in the interview that he was accused of soliciting business in the state but denies that he was doing so.