A judge has ordered Shane Michael Turner, the owner of Network Investments, to pay $114,200 in restitution to investors he defrauded.
According to a press release from the Idaho Department of Finance, Turner pled guilty to one count of felony securities fraud earlier this year. On April 6 Fourth District Judge Deborah Bail entered a permanent injunction against Turner, who is no longer licensed to sell securities. The injunction prohibits him from further violating Idaho securities laws.
The Idaho Department of Finance alleged that Turner failed to register Network Investments with the department, in violation of Idaho law, and defrauded customers by misappropriating for his own use funds they gave him to invest in real estate construction loans, according to the press release.
From October 2004 to January 2006, Turner was a dual employee of a bank and a brokerage firm on the bank’s premises, according to a press release. While locating a brokerage firm in a bank is not illegal, it can confuse customers who often think the brokerage is connected to the bank, Department of Finance Securities Bureau Chief Marilyn Chastain said.
The brokerage firm fired Turner, effectively terminating his stockbroker’s license, she said.
Turner also operated Network Investments, which had a phony Boise address on its Web site.
Turner’s sentencing hearing is scheduled for Aug. 30.
Idaho investors can find out if their investment firm is legitimate by calling the Department of Finance at 332-8004.
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