Attorney General's News Release

Augist 15, 2000

Joplin man who spent investors' money on gambling and wedding expenses pleads guilty to securities fraud

Jefferson City, Mo. — A Joplin man charged by Attorney General Jay Nixon with operating an investment scam involving a theft detection system pleaded guilty today in McDonald County Circuit Court to five counts of securities fraud and five counts of selling unregistered securities.

John Wedeking (DOB - 1/2/59) was ordered by the court to pay $72,000 in restitution and was placed on five years of probation. If Wedeking violates the terms of his probation, the sentence provides that he will serve ten concurrent five year prison terms.

The defendant told investors he had obtained a patent for a device that could be used to track stolen electronics, such as cellular telephones. He never obtained the patent and deposited the investment money into his personal bank account.

The investments, which Wedeking solicited in his corporation called Net Recovery Inc., were actually used by the defendant to purchase a wedding dress and dental work for his former fiancé. Much of the remaining investment money was spent on gambling, a car and a vacation. Wedeking failed to register the securities that he sold and the stock certificates, which he gave to numerous investors, were worthless.

The court ordered Wedeking to pay $10,000 of the restitution immediately and to pay $1,000 each month on the remaining amount. The entire restitution will be repaid within the five years of his probation.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818