This dates back to a story from July 2 we reported on. Sixty-five-year-old Dain Schult and former New Mexico radio host Joel Hixon were convicted of fraud over $20,000, securities fraud, conspiracy to commit fraud, the sale of unregistered security, and the sale of security by an unlicensed agent.
The men defrauded investors out of millions after hatching a plan that led investors to believe they were putting money toward the next iHeartRadio.
Schult used his companies — American Radio Empire, Inc. and American Wireless and Entertainment, Inc.— to recruit hosts like Hixon, who would then ask for money from people and promise them employment. Schult and Hixon told investors the money was being used to pay for services for an IPO of Schult’s company and they would purchase radio stations and put them on the internet. Schult was actually using investors’ money for personal use and paying Hixon commissions in the pyramid scheme.
Schult was sentenced to four years, Hixon was sentenced to 18 months.