WAGONER, Okla. (AP) -- Wagoner County prosecutors now say criminal charges are likely in an investment scheme that investigators say bilked 500 people out of at least $1 million.
The Oklahoma Department of Securities say Phillip Raglin and Joseph Layne used a Ponzi or pyramid scheme to operate Raglin Industries. Investigators say early investors were paid with money from later investments.
Court documents and investors say Raglin told potential investors he had created computer software that would automatically sell rising stocks when they began to fall.
A video shot during a November meeting of potential investors shows Raglin promising a $1,000 investment would be worth $23,000 after one year if all profits were rolled back into the account.