IN THE SECOND JUDICIAL DISTRICT COURT IN AND FOR WEBER COUNTY, STATE OF UTAH. Plaintiff, CRIMINAL INFORMATION. Judge :

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E. NEAL GUNNARSON, Bar No. 1273 Assistant Attorney General

MARK L. SHURTLEFF, Bar No. 4666 Utah Attorney General

5272 South College Drive, #ZOO Murray, Utah 84123

Telephone: (801) 281-1221 Facsimile: (801) 281-1224

IN THE SECOND JUDICIAL DISTRICT COURT IN AND FOR WEBER COUNTY, STATE OF UTAH

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THE STATE OF UTAH, Bail $ 5ry>;m --

Plaintiff,

CRIMINAL INFORMATION VS.

MILLER, WILLIAM CHARLES

Judge :

;

Defendant.

The undersigned, DIANA PARRISH, upon oath, states on

information and belief that the defendant committed the following crimes:

SECURITIES FRAUD

a third degree felony, 3 counts

SALE OF AN UNREGISTERED SECURITY

a third degree felony, 3 counts

VIOLATION OF A CEASE AND DESIST ORDER

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PATTERN OF UNLAWFUL ACTIVITY a s e c o n d degree f e l o n y , 1 c o u n t COUNT 1 SECURITIES FRAUD a t h i r d degree f e l o n y Commencing o n o r a b o u t A p r i l 2 0 0 4 , i n t h e S t a t e o f U t a h , C o u n t y o f Weber, t h e d e f e n d a n t , i n c o n n e c t i o n w i t h t h e o f f e r o r s a l e o f a s e c u r i t y , d i r e c t l y o r i n d i r e c t l y , t o R o b e r t K e n n e d y , made u n t r u e s t a t e m e n t s o f m a t e r i a l f a c t s o r o m i t t e d t o s t a t e m a t e r i a l f a c t s n e c e s s a r y i n o r d e r t o make t h e s t a t e m e n t s m a d e , i n t h e l i g h t o f t h e c i r c u m s t a n c e s u n d e r w h i c h t h e y were m a d e , n o t m i s l e a d i n g ; o r e n g a g e d i n a n a c t , p r a c t i c e , o r c o u r s e o f b u s i n e s s w h i c h o p e r a t e d o r w o u l d o p e r a t e a s a f r a u d o r d e c e i t , i n v i o l a t i o n o f U t a h Code Ann. §§61-1-1 a n d 61-1-21. T h i s v i o l a t i o n i s a t h i r d d e g r e e f e l o n y u n d e r U t a h Law. COUNT 2 SECURITIES FRAUD a t h i r d degree f e l o n y Commencing o n o r a b o u t March 2 0 0 5 , i n t h e S t a t e o f U t a h , C o u n t y o f Weber, t h e d e f e n d a n t , i n c o n n e c t i o n w i t h t h e o f f e r o r s a l e o f a s e c u r i t y , d i r e c t l y o r i n d i r e c t l y , t o Mark Cowan, made u n t r u e s t a t e m e n t s o f m a t e r i a l f a c t s o r o m i t t e d t o s t a t e m a t e r i a l

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light of the circumstances under which they were made, not

misleading; or engaged in an act, practice, or course of business which operated or would operate as a fraud or deceit, in

violation of Utah Code Ann. §§61-1-1 and 61-1-21. This violation is a third degree felony under Utah Law.

COUNT 3

SECURITIES FRAUD

a t h i r d degree felony

Commencing on or about April 2003, in the State of Utah, County of Weber, the defendant, in connection with the offer or sale of a security, directly or indirectly, to T h e o d o r e S u h a k a , made untrue statements of material facts or omitted to state

material facts necessary in order to make the statements made, in the light of the circumstances under which they were made, not

misleading; or engaged in an act, practice, or course.of business

which operated or would operate as a fraud or deceit, in .- . . . . . - .

violation of Utah Code Ann. §§61-1-1 and 61-1-21. This violation is a third degree felony under Utah Law.

COUNT 4

SALE OF AN UNREGISTERED SECURITY

a t h i r d degree felony

Commencing on or about April 2003, in the State of Utah, County of Weber, the defendant willfully engaged in violations of

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Utah Code Ann. 5561-1-7 and 61-1-21 in connection with the offer or sale of an unregistered security (Miller Visual Dynamics, Inc.). This violation is a third degree felony under Utah Law.

COUNT 5

SALE OF AN UNREGISTERED SECURITY a t h i r d degree f e l o n y

Commencing on or about April 2603, in the State of Utah, County of Weber, the defendant willfully engaged in violations of Utah Code Ann. 5S61-1-7 and 61-1-21 in connection with the offer or sale of an unregistered security (Max Intensity Products, Inc.). This violation is a third degree felony under Utah Law.

COUNT 6

SALE OF AN UNREGISTERED SECURITY a t h i r d degree f e l o n y

Commencing on or about April 2003, in the State of Utah, County of Weber, the defendant willfully engaged in violations of Utah Code Ann. §§61-1-7 and 61-1-21 in connection with the offer or sale of an unregistered security (Maxx Intensity Products, Inc.). This violation is a third degree felony under Utah Law.

COUNT 7

VIOLATION OF A CEASE AND DESIST ORDER a t h i r d degree f e l o n y

From on or about November 2001, in the State of Utah, County of Weber and elsewhere, the defendant, in violation of Utah Code

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Ann. § 61-1-20 and § 61-1-21, violated a cease and desist order

by conduct alleged in counts 1 through

6

above. This is a third

degree felony under Utah Law.

COUNT 8

PATTERN OF UNLAWFUL ACTIVITY

a second degree felony

Commencing on or about April 2003, the defendant engaged in conduct which constituted the commission of at least three

episodes of unlawful activity as defined in Utah Code Ann. § 76-

10-1601 (1995). The defendant: (1) received proceeds derived,

directly or indirectly, from a pattern of unlawful activity as more fully defined in Counts 1 through 7 above, in which he

participated as a principal, or he used or invested, directly or indirectly, any part of that income, or the proceeds of the

income, or the proceeds derived from the investment or use of those proceeds, in the acquisition of any interest in, or establishment or operation of, any enterprise; (2) through a pattern of unlawful activity acquired or maintained, directly or indirectly, any interest in or control of any enterprise; or (3) were employed by, or associated with any enterprise and conducted or participated, whether directly or indirectly, in the conduct of that enterprise's affairs through a pattern of unlawful

activity. The unlawful activity included three or more securities violations. This is a violation of Utah Code

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Ann. S76-10-1601 a n d § 76-10-1603 ( 5 ) ( 1 9 9 5 ) , e t s e q . , a s e c o n d d e g r e e f e l o n y .

BAIL REQUEST: The S t a t e o f U t a h r e q u e s t s t h a t t h e C o u r t s e t i n i t i a l b a i l i n t h i s m a t t e r i n t h e M I N I M U M CASH amount o f $ 5 0 0 , 0 0 0 . 0 0 f o r t h e D e f e n d a n t . T h i s D e f e n d a n t ' s l a s t known a d d r e s s was a m o t e l i n t h e c i t y o f Ogden; h e h a s n o p e r m a n e n t a d d r e s s a n d h e r o u t i n e l y t r a v e l s t h r o u g h o u t t h e U n i t e d S t a t e s . I n a d d i t i o n , on A p r i l 6, 2 0 0 5 , t h i s d e f e n d a n t f a i l e d t o a p p e a r a t a s c h e d u l e d e v i d e n t i a r y h e a r i n g b e f o r e J u d g e P a r l e y B a l d w i n , i n t h e c a s e t i t l e d S t a t e o f U t a h v s . W i l l i a m C h a r l e s M i l l e r , C a s e No. 011905181FS. T h e r e i s p r e s e n t l y a " n o - b a i l " w a r r a n t o u t s t a n d i n g f o r t h i s d e f e n d a n t ; h i s l o c a t i o n i s unknown. T h i s D e f e n d a n t c u r r e n t l y h a s a n o u t s t a n d i n g r e s t i t u t i o n o b l i g a t i o n i n t h e amount o f $ 4 4 8 , 3 0 0 . 0 0 t o 49 v i c t i m s i n t h e p r i o r c i t e d c a s e . The S t a t e b e l i e v e s t h i s d e f e n d a n t i s n o t o n l y a f l i g h t r i s k ; b u t h e a l s o r e p r e s e n t s a f i n a n c i a l d a n g e r t o t h e community who w i l l c o n t i n u e t o e n g a g e i n c r i m i n a l a c t i v i t i e s . DATED t h i s

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T h i s C R I M I N A L INFORMATION i s b a s e d upon e v i d e n c e f r o m t h e f o l l o w i n g w i t n e s s e s : R o b e r t Kennedy Tonya Kennedy Mark Cowan J e d Cowan T h e o d o r e S u h a k a L e e s a Kays K e v i n S h e l l e y Mary C o l e And o t h e r s .

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I N THE SECOND JUDICIAL DISTRICT COURT I N A N D FOR WEBER COUNTY, STATE OF UTAH

THE STATE OF UTAH,

P l a i n t i f f , AFFIDAVIT OF PROBABLE CAUSE V S .

MILLER, WILLIAM CHARLES C a s e N O :

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I , DIANA PARRISH, b e i n g f i r s t d u l y s w o r n upon o a t h , d e p o s e a n d s t a t e a s f o l l o w s : ,

1. I am a c e r t i f i e d l a w e n f o r c e m e n t o f f i c e r o f 24 y e a r s a n d am c u r r e n t l y e m p l o y e d a s a S e c u r i t i e s C o m p l i a n c e I n v e s t i g a t o r f o r t h e U t a h D e p a r t m e n t o f Commerce, D i v i s i o n o f S e c u r i t i e s . P r i o r t o my e m p l o y m e n t w i t h t h e D i v i s i o n o f S e c u r i t i e s , I

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was e m p l o y e d b y t h e U t a h A t t o r n e y G e n e r a l f s O f f i c e a s a n i n v e s t i g a t o r a n d t h e S o u t h S a l t L a k e P o l i c e D e p a r t m e n t i n v a r i o u s c a p a c i t i e s . I am c u r r e n t l y i n v e s t i g a t i n g p o s s i b l e v i o l a t i o n s o f s e c u r i t i e s f r a u d s t a t u t e s a n d r e l a t e d c r i m i n a l c o d e v i o l a t i o n s b y WILLIAM CHARLES MILLER.

2 . The f a c t s s e t f o r t h i n t h i s a f f i d a v i t a r e b a s e d u p o n t h e r e s u l t s o f a n i n v e s t i g a t i o n d u r i n g w h i c h I h a v e c o l l e c t e d a n d r e v i e w e d r e c o r d s f r o m w i t n e s s e s a n d o t h e r s o u r c e s . I h a v e r e c e i v e d i n f o r m a t i o n f r o m R o b e r t Kennedy, T o n y a

K e n n e d y , Mark Cowan, J e d Cowan, T h e o d o r e S u h a k a , L e e s a Kays, K e v i n S h e l l e y , Mary C o l e a n d o t h e r s .

3 . I h a v e i d e n t i f i e d t h r e e b u s i n e s s e s MILLER u s e d w h i l e s o l i c i t i n g i n v e s t o r s , M i l l e r V i s u a l Dynamics I n c . ( M V D ) , Maxx I n t e n s i t y P r o d u c t s , I n c . (Maxx)

,

a n d Max I n t e n s i t y P r o d u c t s , I n c . (Max)

.

4 . MVD i n c o r p o r a t e d o n March 1 5 , 1 9 9 6 a n d r e g i s t e r e d w i t h t h e U t a h D i v i s i o n o f C o r p o r a t i o n s a n d C o m m e r c i a l C o d e o n March 2 1 , 1 9 9 6 . MILLER i s l i s t e d a s t h e D i r e c t o r o f MVD. 5 . Maxx i n c o r p o r a t e d o n S e p t e m b e r 1 4 , 2004 a n d r e g i s t e r e d w i t h t h e U t a h D i v i s i o n o f C o r p o r a t i o n s o n S e p t e m b e r 2 1 , 2 0 0 4 . A a r o n A. N i l s e n i s l i s t e d a s t h e R e g i s t e r e d A g e n t ; K e v i n

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S h e l l e y a n d N e l s o n C a n r o a r e l i s t e d a s D i r e c t o r s . MILLER i s n o t l i s t e d a s a p r i n c i p a l o f Maxx. 6 . Max i s n o t r e g i s t e r e d w i t h t h e U t a h D i v i s i o n o f C o r p o r a t i o n s a n d C o m m e r c i a l C o d e . PARTIES 7 . MILLER, a t a l l p e r t i n e n t t i m e s , r e s i d e d i n U t a h . 8 . U t a h c o u r t r e c o r d s r e v e a l t h a t MILLER h a s b e e n s u e d many t i m e s r e s u l t i n g i n j u d g m e n t s i n e x c e s s o f $ 2 2 , 0 0 0 . 9 . U t a h c o u r t r e c o r d s r e v e a l t h a t MILLER p l e a d e d g u i l t y t o C a r r y i n g a P r o h i b i t e d Weapon o n F e b r u a r y 1, 1 9 9 5 . 1 0 . U t a h D i v i s i o n o f S e c u r i t i e s r e c o r d s r e v e a l t h a t MILLER was s e r v e d w i t h a E m e r g e n c y C e a s e a n d D e s i s t a n d o r d e r t o Show C a u s e o n November 9, 2 0 0 1 w h i c h r e s u l t e d i n a f i n e o f $ 1 0 , 0 0 0 o n M a r c h 7 , 2 0 0 2 . 11. U t a h c o u r t r e c o r d s r e v e a l t h a t MILLER was c h a r g e d w i t h a f e l o n y c o u n t o f I s s u i n g a Bad C h e c k o n November 1 6 , 2 0 0 1 a n d e n t e r e d i n t o a p l e a i n a b e y a n c e o n F e b r u a r y 5 , 2 0 0 4 . 1 2 . U t a h c o u r t r e c o r d s r e v e a l t h a t MILLER p l e a d e d g u i l t y t o t w o c o u n t s o f S e c u r i t i e s F r a u d , s e c o n d d e g r e e f e l o n i e s , a n d o n e c o u n t o f S a l e s b y a n U n r e g i s t e r e d S e c u r i t i e s A g e n t , a t h i r d d e g r e e f e l o n y , o n A u g u s t 1 2 , 2 0 0 2 .

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1 3 . U n i t e d S t a t e s B a n k r u p t c y C o u r t r e c o r d s r e v e a l t h a t M i l l e r h a s b e e n a p a r t y t o t h r e e b a n k r u p t c i e s i n U t a h ; M i l l e r Masks, LLC, W i l l i a m C . M i l l e r , a n d G e z i r u s , LLC, a l l f i l e d i n 2 0 0 2 . BACKGROUND 1 4 . MILLER i s p u r p o r t e d l y i n t h e b u s i n e s s o f m a n u f a c t u r i n g SCUBA a n d s k i g o g g l e s . MILLER u s e d t h r e e company names f o r t h i s p u r p o s e : MVD, Max

,

a n d Maxx. To f u n d t h e s e b u s i n e s s e s , MILLER o f f e r e d s e c u r i t i e s t o f o u r i n v e s t o r s b e t w e e n A p r i l 2003 a n d J u l y 2004, r a i s i n g m o r e t h a n $ 2 5 , 0 0 0 . 1 5 . MILLER t o l d i n v e s t o r s h e h a d b e e n i n t h e g o g g l e m a n u f a c t u r i n g b u s i n e s s i n t h e p a s t b u t h a d r u n i n t o some t r o u b l e . M I L L E R t o l d some i n v e s t o r s h e h a d b e e n f o r c e d i n t o b a n k r u p t c y b y h i s f o r m e r p a r t n e r s . MILLER t o l d o t h e r i n v e s t o r s t h a t h e h a d b e e n c o n v i c t e d o f a f e l o n y o n " t r u m p e d up" c h a r g e s . 1 6 . MILLER t o l d i n v e s t o r s h e n e e d e d money t o p u r c h a s e g o g g l e s m a n u f a c t u r i n g m a t e r i a l s o r f o r m a r k e t i n g . 1 7 . MILLER t o l d i n v e s t o r s t h a t i n e x c h a n g e f o r t h e i r money t h e y would r e c e i v e s t o c k o r a p r o f i t s h a r e i n t h e company. 1 8 . The t r a n s a c t i o n s MILLER d e s c r i b e d , s t o c k a n d p r o f i t s h a r i n g

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agreements, are securities as defined by Utah Code Ann.SG1-

1-13

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(9) (i) (1953, as amended).

SECURITIES FRAUD

19. MILLER misrepresented material facts to one or more investors in connection with the offer or sale of a security, including but not limited to:

a) MILLER told Kennedy that Miller was the only principal

in Max Intensity Products, a statement which is not true. Max is not registered with the Utah Division of Corporations. Maxx is registered with the Division of Corporations; however, MILLER is not a principal of that company.

b) MILLER told Kennedy that Kennedy would receive three

times or five times his money back in a percentage of the company within one year, a statement which was not true.

c) MILLER told Kennedy Miller would have an independent

company evaluate Max so Kennedy could pick an investment option. Kennedy never received an evaluation.

d) MILLER told Cowan that Miller was the majority share

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not true. Maxx never issued stock.

e) MILLER told Cowan that Kevin Shelley was his partner in

Maxx, a statement which was not true. Shelley was a principal in Maxx; Miller was an employee of Maxx.

f) MILLER told Suhaka Miller had been convicted of a

felony for failing to disclose bankruptcy information in written form to his investors, a statement which was not true. Miller pleaded guilty to three counts of Securities Fraud and one count of Sales by an

Unregistered Agent.

g) MILLER told Suhaka Miller was the only manufacturer

worldwide of anti-fog goggles, a statement which was not true.

h) MILLER guaranteed Suhaka that if MVD failed, Suhaka's

investment would be secured by machinery and raw

materials in the plant, a statement which was not true.

i) MILLER told Shuaka that Shaukars $3,200 investment

would be used to purchase materials for the manufacture of goggles, a statement which was not true. MILLER admitted to Suhaka that Miller used the money for other expenses.

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2 0 . MILLER o m i t t e d m a t e r i a l f a c t s i n l i g h t o f p r e v i o u s l y made s t a t e m e n t s i n d i s c u s s i o n s w i t h o n e o r more i n v e s t o r s i n c o n n e c t i o n w i t h t h e o f f e r o r s a l e o f a s e c u r i t y , i n c l u d i n g b u t n o t l i m i t e d t o : a ) M i l l e r d i d n o t t e l l Kennedy, Cowan o r S u h a k a t h a t h e h a d p l e d g u i l t y t o t h r e e c o u n t s o f S e c u r i t i e s F r a u d a n d o n e c o u n t o f S a l e s b y a n U n r e g i s t e r e d A g e n t , was o n p r o b a t i o n , a n d owed r e s t i t u t i o n . b ) M i l l e r d i d n o t t e l l Kennedy, Cowan o r S u h a k a t h a t h e h a d b e e n s e r v e d w i t h a n Emergency C e a s e a n d Desist O r d e r i n March 2002 p r o h i b i t i n g him f r o m s o l i c i t i n g i n v e s t o r s . He d i d n o t s a y t h a t h e h a d b e e n f i n e d b y t h e U t a h D i v i s i o n o f S e c u r i t i e s f o r s e l l i n g s t o c k i n MVD

.

c ) M i l l e r d i d n o t t e l l Kennedy, Cowan o r S u h a k a t h a t h e h a d n u m e r o u s j u d g m e n t s f i l e d a g a i n s t him. H e d i d n o t t e l l Kennedy o r Cowan t h a t h e h a d f i l e d b a n k r u p t c y s e v e r a l t i m e s .

d ) Miller d i d n o t p r o v i d e Kennedy, Cowan o r S u h a k a w i t h f i n a n c i a l s t a t e m e n t s o r i n f o r m a t i o n on t h e f i n a n c i a l c o n d i t i o n o f t h e company (Max, Maxx, o r M V D ) , n o r d i d

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h e s a y how t h e c o m p a n i e s were c a p i t a l i z e d .

e ) Miller d i d n o t e x p l a i n r i s k t o Kennedy,Cowan o r S u h a k a , n o r d i d h e m e n t i o n l i q u i d i t y .

f ) Miller d i d n o t a s k Kennedy, Cowan o r S u h a k a a b o u t t h e i r s u i t a b i l i t y a s i n v e s t o r s .

g ) M i l l e r d i d n o t m e n t i o n t o Kenney, Cowan o r Suhaka w h e t h e r t h e i n v e s t m e n t was a s e c u r i t y o r i f i t was exempt f r o m s e c u r i t i e s r e g i s t r a t i o n .

COUNT 1

SECURITIES FRAUD, a t h i r d degree f e l o n y (Robert Kennedy

-

Max I n t e n s i t y Products, I n c . )

R o b e r t Kennedy r e s i d e s i n A l a s k a . H e f i r s t l e a r n e d a b o u t Miller a n d Max I n t e n s i t y P r o d u c t s f r o m a f r i e n d , L e e s a Kays. D u r i n g A p r i l o r May 2 0 0 4 , Kennedy a n d M i l l e r b e g a n c o m m u n i c a t i n g b y t e l e p h o n e , m a i l , a n d e m a i l . D u r i n g t h e s e c o n t a c t s a n d p r i o r t o Kennedy i n v e s t i n g , M i l l e r made t h e f o l l o w i n g s t a t e m e n t s t o Kennedy: a ) Max, a s t a r t u p company, p r o d u c e s g o g g l e s . M i l l e r s a i d h e was t h e o n l y p r i n c i p a l . b ) M i l l e r h a d b e e n s u c c e s s f u l i n t h e g o g g l e b u s i n e s s b e f o r e b u t was scammed w h i c h r e s u l t e d i n h i s b e i n g s e n t t o j a i l . B e c a u s e o f t h i s , h e l o s t h i s h o u s e a n d h i s

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p e r s o n a l b e l o n g i n g s .

C ) M i l l e r s a i d h e h a d a f a c t o r y w i t h h i s p r e v i o u s company t o which he s t i l l h a d a c c e s s a n d h i s new g o g g l e s would b e p r o d u c e d i n t h i s f a c t o r y .

d ) M i l l e r s a i d h e would u s e some o f K e n n e d y ' s money f o r m a r k e t i n g a t a n A u g u s t 2004 t r a d e show w h i c h was why h e n e e d e d K e n n e d y ' s money i n J u n e . e ) M i l l e r s a i d Kennedy was h i s o n l y i n v e s t o r . f ) M i l l e r g u a r a n t e e d Kennedy w o u l d g e t t h r e e t i m e s h i s money b a c k o r f i v e t i m e s h i s money i n a p e r c e n t a g e o f t h e . c o m p a n y w i t h i n o n e y e a r . g ) A f t e r s i x m o n t h s , Miller s a i d h e would h a v e a n i n d e p e n d e n t company e v a l u a t e Max a n d p r o v i d e a r e p o r t . A t h a t t i m e , Kennedy would p i c k h i s i n v e s t m e n t o p t i o n . h ) M i l l e r s a i d Kays would b e r e c e i v i n g a 1 0 % f i n d e r ' s f e e f o r g e t t i n g Kennedy t o i n v e s t . 2 2 . M i l l e r m a i l e d Kennedy s a m p l e g o g g l e s a n d a t h r e e - r i n g b i n d e r c o n t a i n i n g t e s t i m o n i a l s a b o u t t h e q u a l i t y o f M i l l e r ' s g o g g l e s . No d i s c l o s u r e d o c u m e n t s were i n c l u d e d .

2 3 . Based on Miller's s t a t e m e n t s a n d m a i l i n g s , Kennedy d e c i d e d t o i n v e s t . On J u n e 2 , 2 0 0 4 , M i l l e r e m a i l e d Kennedy t h e

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A g r e e m e n t w h i c h t h e p a r t i e s e v e n t u a l l y s i g n e d . Miller s i g n e d t h e Agreement a n d h a d i t n o t a r i z e d i n U t a h on J u n e 3, 2 0 0 4 . K e n n e d y ' s w i f e , Tonya, p u r c h a s e d a $ 5 , 0 0 0 c a s h i e r ' s c h e c k f r o m AlaskaUSA F e d e r a l C r e d i t Union o n J u n e 4 , 2004, a n d s e n t t h e c h e c k v i a FedEx t o M i l l e r . Kennedy s i g n e d t h e A g r e e m e n t o n J u n e 2 9 , 2 0 0 4 . 2 4 . M i l l e r b e g a n s e n d i n g Kennedy e m a i l u p d a t e s o n h i s p r o g r e s s a n d s o l i c i t i n g a d d i t i o n a l money f r o m Kennedy a n d o t h e r s . On O c t o b e r 3, 2004, Miller w r o t e , " I s i t p o s s i b l e f o r you t o h e l p me w i t h t h e $ 5 , 0 0 0 t h a t I n e e d t o g e t t h e T a i w a n p a r t s

. . .

o r d o you know a n y o n e up t h e r e t h a t w o u l d l i k e t o g e t a p i e c e o f t h e a c t i o n ? " I n a n e m a i l d a t e d November 5 , 2004, M i l l e r w r o t e , " L e t me know i f a n y o n e would l i k e t o make some h i g h i n t e r e s t , o n a l o a n on f u t u r e o r d e r s ? " On November 9, 2004, M i l l e r w r o t e , "A minimum o f $ 5 , 0 0 0 . 0 0 u p t o $ 2 0 , 0 0 0 . 0 0 , f o r a r e t u r n o f d o u b l e w i t h i n o n e y e a r . " , 2 5 . December 4 , 2004 was t h e s i x - m o n t h a n n i v e r s a r y d a t e o f K e n n e d y ' s i n v e s t m e n t . Kennedy d i d n o t r e c e i v e t h e i n d e p e n d e n t e v a l u a t i o n o f Max f r o m M i l l e r .

2 6 . Kennedy became c o n c e r n e d when h e c o u l d n o l o n g e r r e a c h

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and Kays obtained a phone number for Shelley at Maxx Intensity Products.

27. On March 18, 2005, Robert Kennedy received an email from

Kevin Shelley in which Shelley stated he is the president of Maxx Intensity Products and Maxx Intensity Products has

never authorized the sale of stock. COUNT 2

SECURITIES FRAUD, a third degree felony

(Mark Cowan

-

Maxx Intensity Products, Inc.)

28. Mark Cowan met Kevin Shelley and Miller in March 2005 when the two men visited Cowan to discuss mortgages. The meeting took place in Cowan's office at Maverick Financial in South Ogden, Utah. The following day Cowan and Miller met again in Cowan's office. Cowan asked Miller what kind of work he did before becoming involved in the mortgage business and Miller said he was involved in the manufacture of anti-fog goggles. Miller told Cowan he still had lenses from his last company but he needed $5,000 to get frames out of

Taiwan. Miller mentioned a clean room and other information regarding the production of goggles. Miller asked Cowan if he knew anyone who would be interested in investing $5,000. 29. Cowan telephoned Miller after the meeting to express an

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i n t e r e s t i n i n v e s t i n g a n d t o r e q u e s t a v i s i t t o t h e c l e a n room. Cowan a n d h i s b r o t h e r , J e d , met Miller a n d K e v i n S h e l l e y a t t h e Coke p l a n t i n Ogden, Utah w h e r e M i l l e r s a i d t h e c l e a n room was l o c a t e d .

3 0 . D u r i n g t h e phone c a l l , m e e t i n g s a t Mark Cowan's o f f i c e a n d , t h e m e e t i n g a t t h e Coke p l a n t , M i l l e r made t h e f o l l o w i n g s t a t e m e n t s a n d r e p r e s e n t a t i o n s a b o u t Maxx. S h e l l e y d i d n o t make a n y r e p r e s e n t a t i o n s t o Cowan.

a ) M i l l e r t o l d Mark Cowan h e u s e d t o r u n a company i n N e w J e r s e y w h e r e h e made l e n s e s f o r S c o t t a n d O a k l e y .

b ) M i l l e r s a i d t h e New J e r s e y company p a i d f o r h i s move t o t h e F r e e p o r t C e n t e r i n F a r m i n g t o n , U t a h . c ) M i l l e r t o l d Mark Cowan h i s e x p a r t n e r s " s c r e w e d h i m o v e r .

"

d ) M i l l e r s a i d h e h a d many i n d u s t r y c o n t a c t s a n d would b e a b l e t o move 5 , 0 0 0 g o g g l e s w i t h i n 30 d a y s . e ) M i l l e r s a i d h e h a d t h e b e s t a n t i - f o g l e n s i n t h e w o r l d a n d , w h i l e a t t h e Coke p l a n t , showed Mark Cowan a

l e t t e r f r o m t h e p r e s i d e n t o f S c o t t s t a t i n g t h e same. M i l l e r showed Cowan a f o l i o c o n t a i n i n g o l d p r e s s a r t i c l e s a b o u t h i s g o g g l e s . The m o s t r e c e n t a r t i c l e

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was d a t e d a r o u n d 2001. f ) M i l l e r s a i d he was t h e m a j o r i t y s h a r e h o l d e r i n Maxx. g ) M i l l e r s a i d h e a n d S h e l l e y w e r e p a r t n e r s a n d S h e l l e y h a d g i v e n M i l l e r e v e r y dime h e h a d . h ) M i l l e r i n i t i a l l y a s k e d Mark Cowan f o r $ 5 , 0 0 0 t o b u y f r a m e s b u t t h e number went u p t o $ 2 0 , 0 0 0 b e c a u s e M i l l e r s a i d " h e n e e d e d t o l i v e . " 3 1 . I m m e d i a t e l y a f t e r l e a v i n g t h e m e e t i n g a t t h e Coke p l a n t , Cowan r e c e i v e d a c e l l p h o n e c a l l f r o m S h e l l e y . S h e l l e y s a i d , "Look, I j u s t g o t t o warn y o u , t h i s g u y [ M i l l e r ] i s a . c o m p l e t e f r a u d . " S h e l l e y a d d e d t h a t M i l l e r h a d b e e n i n j a i l f o r s e c u r i t i e s f r a u d . S h e l l e y e x p l a i n e d h e l o s t a l o t o f money t h r o u g h h i s a s s o c i a t i o n w i t h M i l l e r a n d a d v i s e d Cowan t o s t a y away. 3 2 . S e v e r a l t i m e s t h r o u g h o u t t h e d a y M i l l e r t e l e p h o n e d Cowan t o a s k him what h e t h o u g h t a n d a s k i f h e w a n t e d t o i n v e s t . 3 3 . The f o l l o w i n g d a y M i l l e r t e l e p h o n e d Cowan. Cowan t o l d

M i l l e r h e would n o t i n v e s t . M i l l e r became u p s e t a n d a s k e d , "Who i s s p e a k i n g c r a p a b o u t me?" When Cowan r e f u s e d t o a n s w e r , M i l l e r t h r e a t e n e d t o s u b p o e n a Cowan s o Cowan would h a v e t o t e l l t h e n a m e ( s ) t o t h e j u d g e . Cowan h a s h a d no

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f u r t h e r c o n t a c t w i t h M i l l e r .

COUNT 3

SECURITIES FRAUD, a second t h i r d f e l o n y (Theodore Suhaka

-

M i l l e r Visual Dynamics, I n c . )

3 4 . S u h a k a r e s i d e s i n New J e r s e y . S u h a k a f i r s t l e a r n e d o f W i l l i a m M i l l e r t h r o u g h M i l l e r ' s m o t h e r , L i l y . 3 5 . I n a b o u t A p r i l 2 0 0 3 , S u h a k a t e l e p h o n e d M i l l e r . D u r i n g t h e p h o n e c a l l M i l l e r s a i d h e h a d b e e n c o n v i c t e d o f a f e l o n y on " t r u m p e d up" c h a r g e s a n d t h e b a n k r u p t c y c o u r t h a d s e i z e d h i s s u b s t a n t i a l p e r s o n a l a s s e t s . M i l l e r s a i d h e n e e d e d $ 1 , 0 0 0 i m m e d i a t e l y t o f i l e a l e g a l r e s p o n s e t o s t o p t h e c o u r t f r o m s e i z i n g h i s b u s i n e s s a s s e t s . I f S u h a k a s e n t t h e money Miller s a i d h e w o u l d "more t h a n pay" S u h a k a b a c k .

S u h a k a s a i d h e t o o k a $ 1 , 0 0 0 c a s h a d v a n c e o n h i s A d v a n t a c r e d i t c a r d a n d s e n t t h e money t o M i l l e r v i a W e s t e r n U n i o n o n A p r i l 3 , 2 0 0 3 . 3 6 . S h o r t l y a f t e r S u h a k a s e n t $ 1 , 0 0 0 , M i l l e r t o l d S u h a k a h e f i l e d p a p e r w o r k w h i c h s t o p p e d t h e s a l e o f M V D r s b u s i n e s s a s s e t s j u s t h o u r s b e f o r e t h e s c h e d u l e d a u c t i o n . M i l l e r t o l d S u h a k a t h a t g o i n g i n t o p r o d u c t i o n a g a i n w o u l d g e t h i m o u t o f t r o u b l e . M i l l e r s u g g e s t e d S u h a k a v i s i t a w e b s i t e r e l a t e d t o MVD a n d m a i l e d o r f a x e d MVD s a l e s m a t e r i a l t o S u h a k a .

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M i l l e r a s k e d Suhaka t o i n v e s t $ 3 , 2 0 0 f o r a p r o f i t - s h a r i n g i n t e r e s t i n MVD. 3 7 . P r i o r t o i n v e s t i n g S u h a k a s p o k e t o M i l l e r s e v e r a l t i m e s b y t e l e p h o n e . M i l l e r p r o v i d e d t h e f o l l o w i n g i n f o r m a t i o n : a ) M i l l e r s a i d h e was i n b a n k r u p t c y a n d h a d b e e n i n v o l v e d i n a b a n k r u p t c y b e f o r e . Miller m e n t i o n e d a f a i l e d b u s i n e s s i n P e n n s y l v a n i a . b ) Miller s a i d h e h a d b e e n c o n v i c t e d o f a f e l o n y . M i l l e r s a i d h e t o l d h i s i n v e s t o r s v e r b a l l y t h a t h e h a d f i l e d b a n k r u p t c y b u t h e f a i l e d t o p r o v i d e t h a t i n f o r m a t i o n i n w r i t i n g . M i l l e r s a i d most p r o s e c u t o r s would h a v e o v e r l o o k e d t h i s m i n o r v i o l a t i o n . c ) Miller t a l k e d a b o u t t r a d e shows h e a t t e n d e d a n d s p e c i f i c a l l y a b o u t a show i n New O r l e a n s b e f o r e t h e W i n t e r O l y m p i c s w h e r e h i s g o g g l e s w e r e e x t r e m e l y p o p u l a r . d ) Miller s e n t S u h a k a a c o p y o f h i s c o n t r a c t w i t h t h e S a l t Lake O l y m p i c C o m m i t t e e a n d c o p i e s o f m a g a z i n e a r t i c l e s a b o u t h i s p r o d u c t s . e ) Miller s a i d h e i s t h e o n l y p r o d u c e r i n t h e w o r l d o f p e r m a n e n t a n t i - f o g g o g g l e s a n d h e k e e p s t h e s e c r e t

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f o r m u l a i n h i s h e a d . f ) M i l l e r s a i d p e o p l e were s a l i v a t i n g t o p u r c h a s e h i s p r o d u c t s w h i c h w o u l d b e a c i n c h t o s e l l . g ) M i l l e r g u a r a n t e e d t h a t i f t h e b u s i n e s s f a i l e d S u h a k a f s i n v e s t m e n t w o u l d b e s e c u r e d b y m a c h i n e r y a n d raw m a t e r i a l s f r o m t h e m a n u f a c t u r i n g p l a n t . 3 8 . On May 11, 2 0 0 3 , M i l l e r f a x e d a d o c u m e n t t o S u h a k a t i t l e d "OPTION: T e d S u h a k a . " T h e d o c u m e n t was s i g n e d : Mary C a r t e r , MVD, B o a r d o f D i r e c t o r s . P a r a g r a p h s t w o , t h r e e , a n d f o u r s t a t e s : F o r e v e r y d o l l a r a d v a n c e d t o t h e c o m p a n y , a p r o f i t s h a r e o f $ 5 . 0 0 w i l l become p e r m a n e n t i n t h e company o n a l l f u t u r e s a l e s . T h i s p r o f i t s h a r e w i l l b e a t t h e s o l e o p t i o n o f t h e g r a n t o r a n d may b e a c t e d upon b e t w e e n 6 m o n t h s t o o n e y e a r , f r o m t h e d a t e o f t h i s O p t i o n . I n a n y e v e n t , i f f o r a n y r e a s o n , w e f a i l c o m p l e t e l y i n t h e r e s u r r e c t i o n o f t h e c o m p a n y , a n y f u n d s a d v a n c e d u n d e r t h i s a g r e e m e n t w i l l b e r e t u r n e d t h r o u g h l i q u i d a t i o n o f a s s e t s t h a t a r e a v a i l a b l e . 3 9 . On May 1 2 , 2 0 0 3 , S u h a k a w i r e d $ 3 , 2 0 0 f r o m h i s b a n k t o Mary C o l e ' s b a n k a c c o u n t p e r M i l l e r ' s i n s t r u c t i o n s . I s p o k e w i t h Mary C a r t e r who i n f o r m e d m e t h a t s h e a l s o u s e s t h e name Mary

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C o l e . S h e i n d i c a t e d Mary C a r t e r i s h e r m a i d e n name. 40. S u h a k a l a t e r a s k e d M i l l e r i f h e p u r c h a s e d t h e m a t e r i a l s . M i l l e r r e p l i e d t h a t h e w a s n ' t a b l e t o u s e S u h a k a f s money f o r t h e s u p p l i e s b e c a u s e h e h a d "a b u n c h o f o t h e r t h i n g s b r e a t h i n g down h i s n e c k " a n d h e u s e d S u h a k a ' s money f o r t h o s e t h i n g s . 4 1 . On o r a b o u t J u n e 3 0 , 2 0 0 3 , M i l l e r f a x e d a d o c u m e n t t o S u h a k a t i t l e d "Addendum t o A g r e e m e n t o f 0 6 / 2 9 / 0 3 . " T h e addendum p r o v i d e d w i r i n g i n s t r u c t i o n s f o r Mary C o l e s f a c c o u n t a n d s t a t e s , "The s h a r e s d i s c u s s e d i n p a r a g r a p h # 2 o f t h e p r e v i o u s A g r e e m e n t o f 6 / 2 9 / 0 3 w i l l be d i s p e r s e d a s f o l l o w s : 4 5 5 , 0 0 0 s h a r e s t o T e d S u h a k a a n d 2 4 5 , 0 0 0 s h a r e s t o Adam S u h a k a

. .

.

/ I 4 2 . S u h a k a w i r e d $ 7 , 0 0 0 t o Mary C o l e ' s a c c o u n t o n o r J u l y 3 , 2 0 0 3 . M i l l e r t o l d S u h a k a t h e MVD B o a r d o f D i r e c t o r s a g r e e d t o g i v e Miller a n d h i s s o n m o r e s h a r e s t h a n a n y o t h e r i n v e s t o r b e c a u s e S u h a k a w a s w i l l i n g t o i n v e s t when n o o n e e l s e w o u l d . M i l l e r s a i d i f S u h a k a a n d h i s s o n ' s s h a r e s were a d d e d t o g e t h e r t h e t o t a l w o u l d b e " j u s t a r a z o r ' s e d g e " l e s s t h a n t h e n u m b e r o f s h a r e s h e l d b y M i l l e r . 4 3 . M i l l e r c o n t i n u e d t o r e q u e s t m o r e money a n d S u h a k a c o n t i n u e d

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to invest. On January 20, 2004, Suhaka sent Miller $1,500 via Western Union. On March 11, 2004, Suhaka sent Miller $660 via United States Express Mail. On July 13, 2004, Suhaka sent Miller $1,250 via a bank transfer. Suhaka said Miller would call and need money to keep him out of jail, to pay back disgruntled investors, or for some other emergency. Suhaka estimates he sent Miller more than $20,000.

44. Suhaka last spoke to Miller in the Spring 2005. Miller asked for $300 to purchase gas to aid in his flight from Utah authorities. Suhaka refused to send the money.

45. Suhaka said he has never spoken to Mary Cole or Mary Carter. Miller told Suhaka his investments needed to go through

Cole's account to show that MVD is a legitimate company. Miller told Suhaka he would be dealing with Carter on issues related to his investment.

COUNT 4

SALE O F AN UNREGISTERED SECURITY,

a t h i r d degree felony

46. Records of the Utah Division of Securities reveal that Miller Visual Dynamics, Inc. has not filed any security registrations with the Division nor has Miller Visual Dynamics, Inc. filed for any exemptions.

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COUNT 5

SALE O F AN UNREGISTERED SECURITY,

a t h i r d d e g r e e f e l o n y

47. Records of the Utah Division of Securities reveal that Max Intensity Products, Inc. has not filed any security

registrations with the Division nor has Max Intensity Products, Inc. filed for any exemptions.

COUNT 6

SALE O F AN UNREGISTERED SECURITY,

a t h i r d d e g r e e f e l o n y

48. Records of the Utah Division of Securities reveal that Maxx Intensity Products, Inc. has not filed any security

registrations with the Division nor has Maxx Intensity Products, Inc. filed for any exemptions.

COUNT 7

VIOLATION OF CEASE AND DESIST

ORDER

a t h i r d d e g r e e f e l o n y

49. On November 9, 2001, the Division of Securities issued an Emergency Order to Cease and Desist and Order to Show Cause in the matter of William C. Miller. The Emergency Order stated that Miller, "shall immediately CEASE AND DESIST from offering or selling securities in or from this State, and from directly or indirectly aiding or assisting other

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interests in securities in this State. [And]

. . .

shall immediately CEASE AND DESIST from soliciting finders to

promote the investments; and

.

.

.

shall immediately CEASE

AND DESIST FROM any and all other or further violations of the Act."

50. On February 27, 2002, a Notice of Entry of Default and

Recommended Order was filed and on March 11, 2002, the Utah Division of Securities adopted the order and fined Miller

51. Commencing on or about April 2003, the defendant engaged in conduct in direct violation of the February 2002 Order. This is a violation of Utah Code Ann. S61-1-21, a third degree felony.

COUNT 8

PATTERN OF UNLAWFUL ACTIVITY a second degree f e l o n y

52. Commencing on or about April 2003, the defendant engaged in conduct which constituted the commission of at least three episodes of unlawful activity as defined in Utah Code Ann. S76-10-1603. The defendant: (1) received proceeds derived, directly or indirectly, from a pattern of unlawful activity as more fully defined in Counts 1 through 9 above, in which

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he participated as principal, or he used or invested, directly or indirectly, any part of that income, or the proceeds derived from the investment or use of those proceeds, in the acquisition of any interest in, or

establishment or operation of, any enterprise; (2) through a

pattern of unlawful activity acquired or maintained,

directly or indirectly, any interest in or control of any enterprise; or (3) was employed by, or associated with any enterprise and conducted or participated, whether directly or indirectly, in the conduct of that enterprise's affairs through a pattern of unlawful activity. The unlawful

activity included three or more violations of securities fraud. This is a violation of Utah Code Ann. 576-10-

1603 (5)

,

a second degree felony.

SUMMARY

53. Based on my review of the evidence there is probable cause

to believe that

MILLER

has committed the crimes of:

SECURITIES FRAUD

a third degree felony, three counts

SALE OF AN UNREGISTERED SECURITY

(29)

VIOLATION OF A CEASE AND DESIST ORDER a t h i r d degree f e l o n y , 1 count

PATTERN OF UNLAWFUL ACTIVITY a second degree f e l o n y , 1 count

DATED t h i s

/&

d a y o f

-

L

,

2 0 0 5 .

D i a n a P a r r i s h , A f f i a n t

SUB RIBED AND SWORN b e f o e m e t h i s

6

\b-- d a y o f

~tcr~vn

R&

I

2 0 0 5 .

.-

(30)

E. NEAL GUNNARSON, Bar No. 1273 Assistant Attorney General

MARK L. SHURTLEFF, Bar No. 4666 Utah Attorney General

5272 South College Drive, #200 Murray, Utah 84123

Telephone: (801) 281-1221 Facsimile: (801) 281-1224

IN THE SECOND JUDICIAL DISTRICT COURT IN AND FOR WEBER COUNTY, STATE OF UTAH

THE STATE OF UTAH, Bail $

'&:e~--

6 0

~d

Plaintiff,

WARRANT OF ARREST VS.

MILLER, WILLIAM CHARLES case NO:

fk5/7~65'7[

p5'

Judge : Defendant.

THE STATE OF UTAH TO ANY PEACE OFFICER IN THE STATE OF UTAH, G R E E T I N G S :

An Information, upon oath, having been this day made

before me by Investigator Diana Parrish, and it appearing from the Information, or affidavit filed with the Information, that there is probable cause to believe that the public offense of: Securities Fraud, a third degree felony, 3 counts; Sale of an

(31)

U n r e g i s t e r e d S e c u r i t y , a t h i r d degree f e l o n y , 3 c o u n t s ; V i o l a t i o n o f a C e a s e a n d D e s i s t O r d e r , a t h i r d degree f e l o n y , 1 c o u n t ; a n d P a t t e r n o f U n l a w f u l A c t i v i t y , a s e c o n d degree f e l o n y , 1 c o u n t , h a s been c o m m i t t e d , and t h a t t h e d e f e n d a n t , WILLIAM CHARLES MILLER, h a s c o m m i t t e d t h e s e o f f e n s e s ,

YOU ARE THEREFORE COMMANDED t o a r r e s t t h e a b o v e named

d e f e n d a n t f o r t h w i t h and b r i n g t h e d e f e n d a n t b e f o r e t h i s c o u r t , o r b e f o r e t h e n e a r e s t o r m o s t a c c e s s i b l e m a g i s t r a t e f o r s e t t i n g b a i l . I f t h e d e f e n d a n t h a s f l e d j u s t i c e , you s h a l l p u r s u e t h e d e f e n d a n t i n t o any o t h e r c o u n t y o f t h i s s t a t e a n d t h e r e a r r e s t t h e d e f e n d a n t . The o f f e n s e s l i s t e d a b o v e a r e f e l o n i e s . e.c

--

B a i l i s s e t i n t h e amount o f $ f W 000

m

DATED t h i s &-day o f

~cc%G,&

,

2 0 0 5

N-

@-a

HONORABLE,

J U D G E , COURT

'3xGlzrr3 f l I 5 ~ ~ C

D e f e n d a n t ' s L a s t Known A d d r e s s : C/O Budget

Inn

# 1 1 2

1957 Washington Blvd. Ogden,

UT

84401

Figure

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References

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