A Milaca man remained in custody Tuesday in the Mille Lacs County Jail where he was being held on a $1 million bond and waiting for extradition to Alabama for alleged violations of the Alabama Securities Act.
Mille Lacs County Sheriff’s deputies, with assistance of the Minnesota Department of Commerce, arrested Scott Anthony Koster, 32, on March 28 at his home in Milaca. The arrest was announced by Baldwin County, Ala., District Attorney Hallie S. Dixon and the Alabama Securities Commission.
The arrest was made at about 2 p.m. March 28 on 140th Avenue in rural Milaca.
According to a press release issued in Alabama, Koster’s arrest stems from a November 2013 Baldwin County Grand Jury indictment charging him with one count each of sale of unregistered securities and sale of securities by an unregistered agent; two counts of fraud in connection with the sale of securities, more specifically described as making an untrue statement of material fact and employing a device, scheme or artifice to defraud.
Koster is also charged with one count of conspiracy to commit securities fraud. At the time the alleged violations were committed all charges were classified as Class C felonies which carry a maximum punishment of from one to 10 years imprisonment and not more than a $15,000 fine per charge, upon conviction.
According to the indictment, Koster was allegedly involved in a “prime bank” investment scheme wherein he fraudulently solicited investor funds through Richard James Tucker of Robertsdale and Tucker’s company, Synergy Finance Group LLC, formerly headquartered in Baldwin County, Ala. The indictment also alleges that Koster used investor funds for non-investment purposes in violation of the Alabama Securities Act.
“The ASC would like to recognize and thank the State of Minnesota’s Department of Commerce for their invaluable assistance with the investigation of this important case,” said Joseph Borg, Director of the Alabama Securities Commission. “We also extend our gratitude to Sheriff Brent C. Lindgren and the deputies of the Mille Lacs County Sheriff’s Department for their cooperation and support in seeing that this defendant was taken into custody successfully.”