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Three face indictment in racketeering probe By DAVID PRESZLER Three Medford residents have been indicted in a securities fraud and racketeering case in which authorities believe about 30 people were bilked out of as much as $500,000. Medford police said the three ran Franklin Resources Inc., a registered corporation that sold unregistered stock in the Opp gold mine off Jacksonville Reservoir Road. Kenneth Richard Allen, 65, and his wife, 64-year-old Emily Jane Allen, both of Medford, made their first court appearances in the case Sept. 9. Colin Rueben Larson, 57, of Medford, is scheduled to make his first appearance Monday. "Our allegation is that they took people's money for their own use," said Medford police Lt. Tim George. Police also say they don't believe any gold was actually mined at the mine, near 685 Jacksonville Reservoir Road. Indictments of the three list victims defrauded of money totaling about $150,000, but authorities believe more money was taken. Emily Allen was the only person arrested in the case when she was picked up on theft charges July 29. Since then, she and the two men have been indicted on theft and securities fraud charges. Medford police have been investigating the case for eight months with assistance from the Oregon Department of Financial and Corporate Securities. The U.S. Immigration and Naturalization Service was also involved because Emily Allen is Canadian. The alleged unregistered securities deals and thefts occurred between April 1996 and July 1997. Kenneth Allen is facing three counts of selling unregistered securities, four counts of aggravated theft, four counts of first-degree theft, two counts of securities fraud and one count of racketeering. The racketeering charge alleges a series of illegal business practices, in this case the theft and securities charges. Emily Allen faces four counts of aggravated theft, four counts of first-degree theft and one count of racketeering related to the theft charges. Colin Larson faces four counts of selling unregistered securities. All three were indicted by a Jackson County grand jury Aug. 24. Police are asking anyone with more information or who may have been a victim of the alleged scheme to contact Detective Sue Campbell at 774-2235. Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA