UNITED STATES ATTORNEY KARIN J. IMMERGUT today announced the indictment
and arrest of BRIAN LEWIS HICKS on twenty-four felony charges including
securities fraud, mail fraud, wire fraud and money laundering. HICKS
is alleged to have defrauded approximately 600 investors of over $1.5
million. The investors lived in nearly twenty U.S. states and territories,
from Oregon to Puerto Rico and New Hampshire to Arizona. Individual
investments ranged from $25 to over $100,000.
According to the Indictment, HICKS told investors he was President
and Chief Executive Officer of a company called "Incentrix", which had
developed a new operating system for computers called "Cheetah OS."
HICKS told investors that he needed money to market the software and
described various "deals" he claimed Incentrix was negotiating to sell
the software.
At the outset of the scheme, the Indictment alleges, HICKS told investors
Incentrix either had completed or was on the verge of completing sales
of the Cheetah OS software worth tens of millions of dollars, and that
investors would receive large returns on investments in Incentrix. By
the end of the scheme, HICKS was telling investors that Incentrix would
be sold outright to a major computer manufacturer for billions of dollars.
In fact, as HICKS knew, Incentrix never developed any operating system,
never produced or sold any product whatsoever, and was never on the
verge of being sold to any other corporation.
The scheme to defraud collapsed in February 2001 when HICKS announced
his resignation from Incentrix as investor concern mounted following
HICKS' failure to appear for a scheduled interview with securities investigators
from the State of Oregon.
"We mean business when it comes to prosecuting fraud," the U.S. Attorney
explained. "We intend to obtain a measure of justice for the hundreds
of victims who lost some or all of their savings in this fraudulent
scheme."
U.S. Attorney Immergut praised investigators from the Federal Bureau
of Investigation, the United States Postal Inspection Service, and the
Oregon Department of Consumer and Business Services for their work in
the investigation.
"The tenacity and perseverance of these investigators is what cut
through the tangled web of false statements at the heart of this case.
Their teamwork is a model for how we can and will hold even the most
elusive con artists accountable," said U.S. Attorney Immergut.
HICKS is charged with one count of securities fraud, in violation
of 15 U.S.C. § 78j(b); the statute provides for a maximum penalty of
10 years imprisonment for this count.
HICKS is charged with eight counts of mail fraud, in violation of
18 U.S.C. § 1341; the statute provides for a maximum penalty of 20 years
imprisonment for each count.
HICKS is charged with twelve counts of wire fraud, in violation of
18 U.S.C. § 1343, the statute provides for a maximum penalty of 20 years
imprisonment for each count.
HICKS is charged with three counts of money laundering, in violation
of 18 U.S.C. § 1957; the statute provides for a maximum penalty of 10
years imprisonment for each count.
The charges are merely accusations, and Mr. Hicks is presumed innocent
unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Dwight C.
Holton. For further information, you may contact AUSA Holton at (503)
727-1128.
