This is an archived article that was published on sltrib.com in 2016, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
Following a three-day jury trial, a Utah man has been found guilty of only some of allegations against him for selling shares in companies supposedly developing a movie rental technology that was "better than Netflix," while he instead allegedly used investor funds for personal expenses that included fast food meals.
David Bruce Buttars, 56, and co-defendant Mark Whitney Keith La Count, 59, defrauded six victims, including several Park City neighbors, out of $69,500, according to charges filed against them three years ago in 3rd District Court.
In 2013, La Count pleaded no contest to one count of class A misdemeanor attempted securities fraud and was fined $750 and placed on 18 months probation, which he completed in 2014.
Buttars, who fought the charges, was found guilty on Wednesday of five counts: engaging in a pattern of unlawful activity and securities fraud, both second-degree felonies, as well as three counts of third-degree felony securities fraud.
The jury found him not guilty of three counts of second-degree felony theft and one count of third-degree felony theft.
Buttars faces the possibility of up to 30 years in prison when he is sentenced Nov. 18 by Judge Vernice Trease.
Buttars and La County sold shares in Ellipse Technology Inc and Movieblitz North America but were not licensed to sell securities and investors never saw any returns, court documents say.
The two told potential investors they were working with a "genius" who had helped to create the stealth bomber and who was using some of that technology to develop a device that would "put media stores out of business," according to charging documents.
They claimed a red plastic device, called a media key, was akin to a thumb drive and would allow consumers to rent movies at a store or kiosk and then play them on a television. Victims were told the device would let them download 20 to 30 movies, without no need to return them or pay late fees, documents say.
However, financial records show that instead of putting investor monies toward product development, Buttars spent them largely on personal expenses such as McDonald's meals, groceries, gas and child support, according to charges.
Victims included several people in the Jeremy Ranch development near Park City where the two men lived at one time.