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Phoenix Businessman Could Pay $11 Million To Investors After Breaking Securities Laws

By Stina Sieg
Published: Monday, October 3, 2016 - 7:13pm
Updated: Tuesday, October 4, 2016 - 9:50am
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The widow of late baseball Hall of Famer Harmon Killebrew could see her share of $11 million in restitution from a Phoenix businessman who broke the state’s securities laws. The payment was recommended by a judge last week – two years after the matter went before the Arizona Corporation Commission.

KJZZ originally reported in July 2014 that Brian Hageman was accused of taking $11 million from 700 investors who bought shares of his now-defunct companies Deluge Inc. and Hydrotherm Corporation.

Now, an administrative law judge is recommending Hageman pay all that money in restitution, plus fines and fees, saying Hageman failed to inform investors he had been selling stock for years and that little to no revenue had ever been paid to investors.

Harmon Killebrew’s widow, Nita Killebrew, testified Hageman promised “a tremendous return” on their money.

At a meeting later this month, the Corporation Commission will formally decide whether to adopt the judge’s order.