A Stowe man is denying allegations that he committed fraud in a 2011 business deal.
Daniel Burgess, 50, pleaded not guilty in U.S. District Court in Burlington Monday after a grand jury indicted Burgess last week on one count of wire fraud, according to a release from the U.S. Attorney for the District of Vermont’s office.
Burgess owned the company Tucker Financial Services, through which he bought and sold securities, according to the indictment. Court documents say neither Burgess nor the company was registered with the Vermont Department of Financial Regulation.
Beginning in July 2011, Burgess worked with a woman in Nevada to sell 520,000 shares of a stock she owned in a sports apparel manufacturing company. The indictment reports they agreed that Burgess would get 20 percent of the proceeds from sales of the stocks and the woman would receive the rest.
According to the indictment, Burgess successfully sold all of the woman’s shares between August and October 2011, netting a total of about $619,000 from their sale.
However, Burgess paid the woman less than half of the $495,000 that was owed to her under the terms of the agreement. He allegedly kept about $249,000 for his own use.
If Burgess is convicted, he could face up to 20 years in prison and a fine of as much as $500,000.
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