Las Vegas resident Lewis Eslick has pleaded guilty in federal court to securities fraud and tax fraud.
He is facing up to 20 years in prison and $5 million in fines for the securities charges and another $500,000 on the tax charges.
Court records said that Eslick created shell companies between 1990 and 1996 and later associated with a stock promoter who filed false documentation for the shell companies, allowing them to be traded on the open markets.
Court records said that Eslick made at least $1.2 million through the stock sale. He also allegedly received $300,000 in finders fees for finding buyers, and he failed to report that money as income, a statement from the U.S. Attorney's Office said.
That statement also said Eslick's plea is the latest development in lengthy investigation of Las Vegas stock promoter Peter Berney. The statement said a group working with Berney created and/or sold more than 60 shell companies for proceeds in excess of $35 million.
Five individuals in that scheme were indicted in 2003 and await a Jan. 18 trial.
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