Home Login RADIO ONLINE RSS Facebook
Find Radio Online
AM FM HD

Advertisement

Men Behind American Radio Empire Scam Get to Prison Time


Dain Schult and Joel Hixon
Dain Schult and Joel Hixon

The two former radio personalities that defrauded investors out of millions of dollars have been sentenced to prison, reports the Las Cruces Sun News. Both Dain Schult and Joel Hixon were charged with trying to convince investors they were assembling a iHeartRadio-type multimedia conglomerate. They were convicted in June 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.

Schult received a four year sentence and Hixon was sentenced to 18 months in prison. Both were ordered to make restitution of $25,000. "These men violated the trust of their investors with lies and deception. Their prison sentences send a loud and clear message of deterrence to criminals committing fraud in New Mexico," said New Mexico Regulation and Licensing Department Superintendent Marguerite Salazar.

The newspaper originally reported that the New Mexico Regulation and Licensing Department claimed Schult, who lives in Austin, TX, used his companies -- American Radio Empire Inc. and American Wireless and Entertainment Inc. -- to recruit experienced radio personalities such as Hixon of Las Cruces to solicit investments from unsuspecting friends, with offers of future employment.

Schult and Hixon allegedly led investors to believe that the money they raised was being used to pay for services aimed at funding an initial public offering of Schult's company, said the state of New Mexico. Additionally, Schult and Hixon told investors that the money from the sale of promissory notes would be used to purchase smaller radio stations around the U.S. while placing them on the Internet.

"All told from 1998 to present, we estimate Schult earned $1.4 million strictly from convincing people to give it to him," said Bouillon-Mascarenas. "This case involving religion and radio demonstrates that affinity fraud can affect anyone, no matter their line of work."

Advertisement

Latest Radio Stories

Radio Tops WSAB Statewide Media Landscape Study
Washington State Association of Broadcasters
Washington State Association of Broadcasters
The Washington State Association of Broadcasters is sharing results of its recent statewide media landscape study -- performed by Smith Geiger -- to address media trends in the state of Washington. The study found local AM/FM Radio continues to lead More

SBS Receives Multi-Million Dollar Settlement from VOZ
Spanish Broadcasting System
Spanish Broadcasting System
Spanish radio broadcaster Spanish Broadcasting System has reached a multi-million dollar out-of-court settlement with VOZ Media regarding VOZ's default of its $64 million acquisition of the SBS Mega TV division. The amount of the settlement was not More

Audacy Restructuring Could Force Station Divestment
Audacy
Audacy
Audacy is seeking approval from the FCC to emerge from Chapter 11 bankruptcy. In a move prompted by restructuring, Audacy is set to divest one of its stations in South Carolina. Since it is essentially becoming a new company, the transition means More
Advertisement

FNN's Heckman Named 2024 Jesse H. Neal Awards Finalist
Jory Heckman
Jory Heckman
Federal News Network reporter Jory Heckman has been honored as a finalist for one of the industry's most prestigious awards programs, the SIIA 2024 Jesse H. Neal Awards. Jory has been nominated for the Neal awards as a result of his reporting on the More

Auddia Inc. Closes on $3.5 Million in New Financing
Auddia Inc.
Auddia Inc.
Auddia Inc. has closed on $3.5 million of new financing by selling 1.3 million common shares from its previously announced equity line. Management believes that by strengthening the balance sheet and improving the premium listening experience More

Veritonic Integrates with Adjust for Mobile Devices Attribution
Veritonic
Veritonic
Veritonic has announced an integration with measurement and analytics company Adjust. Through this integration, Veritonic's audio attribution solution will receive automated data about in-app conversion actions on mobile devices including installs, More

Return to Menu

Advertisement

Subscribe to our Newsletter
Radio news and headlines delivered right to your e-mail box -- and it's free.

Advertisement

Advertisement