Daniel Burgess, 50, of Stowe, pleaded not guilty on October 31, 2016 in United States District Court in Burlington to a charge of wire fraud. The suspect has been released on conditions pending trial, which has not been scheduled.
On October 27, a federal grand jury in Burlington returned a one-count wire fraud charge indictment against Burgess. According to the indictment, Burgess engaged in the business of buying and selling securities through a company he owned named Tucker Financial Services. The indictment alleges that in July 2011, Burgess entered into a contract with a woman from Nevada in which Burgess agreed to try to sell 520,000 shares of a penny stock the woman owned. Under the terms of the agreement, the woman would receive 80% of the gross proceeds of any stock sales and Burgess would be entitled to the remaining 20%.
The indictment charges that between August and October 2011, Burgess sold all 520,0000 shares of the penny stock for a total of about $619,000. The woman’s 80% share of the sale proceeds was about $495,000. Burgess paid her about $246,000, but fraudulently converted the remaining money for his own use.
If convicted, Burgess faces up to 20 years of imprisonment and a fine of up to $500,000. The actual sentence would be determined with reference to federal sentencing guidelines.
