Dwight Shane Baldwin, who ran several “venture capital” funds called the Silverleaf Companies has been charged by the Utah Division of Securities with securities fraud and theft, prosecutors said Monday. Previously the Division had charged him with securities fraud. The Division’s civil complaint is available here.
According to the allegations in the complaint, In January of 2008, Baldwin solicited a total of $200,000 from two Utah investors. He told the investors that would use their money to invest in a California company called GarageCo, Inc., which manufactures a plastic toy called “Yo Baby.” Baldwin told investors they would receive a return of their principal plus a profit in about three to five months. One of the investors recalled Baldwin saying the profit would be around approximately $300,000. Baldwin also promised the investors they would receive an equity interest in GarageCo and Silver Leaf Capital. The complaint alleges that Baldwin personally guaranteed the investment to one investor, and gave both investors a written guaranty from Silverleaf Companies. To date, the investors have received no return of their principal, have received no profit or equity ownership in GarageCo or Silver Leaf Capital. Here is a detailed article about the case that appeared in the Salt Lake Tribune.