George Boswell Arrested on Fraud and Racketeering Charges
Published: September 12, 2000
|George Boswell, founder of Boswell Energy systems, was arrested and charged with 20 counts of fraudulent sales of securities and one count of racketeering-all felonies, according to a report in the Vilas County News-Review.|
Boswell Energy Systems developed a modification to stock Mikuni carburetors which was said to improve fuel vaporization and increase engine power while reducing consumption. The Super Cycler was introduced in 1995 and was incorporated in Dale Loritz' Eagle River Championship-winning Formula I sled.
The heart of the technology features tiny holes bored through the wall of the venturi into existing active and originally inactive circuits that lead to the needle jet area of the carb body, where differential air pressure exists.
Boswell, a resident of Eagle River, is accused of selling millions of dollars' worth of securities to nearly 300 investors, though less than one third of them were accredited and legally authorized to purchase the high-risk securities based on net worth. If convicted, he faces up to 165 years and millions of dollars in fines.
According to the criminal complaint, Boswell would tell prospective investors that he had over six million dollars in cash reserves and that he had deals pending with engine manufacturers to purchase his carburetor technology.
The complaint outlines a number of important facts about Boswell's criminal and financial history that he allegedly kept hidden from his prospects. Among the items listed on the complaint are…
• That he filed for bankruptcy five times between March of 1980 and July of 1990, before moving from Illinois to northern Wisconsin. The bankruptcies involved hundreds of thousands of dollars in unsecured debts.
• That he was convicted of two counts of felony theft by fraud in December 1991, in Madison County, Ill.
• That he was withdrawing thousands of dollars in investment funds provided to Boswell Energy Systems Limited Partnership to pay restitution for past criminal convictions in Illinois.
• The Wisconsin Department of Financial Institutions ordered in 1996 and 1997 that he stop soliciting investments.
• There were numerous liens and judgments entered against him and his companies totaling more than $50,000.
• He was leasing and did not own any of the property or buildings at his Eagle River business location, including the adjacent miniature golf course property he purchased on land contract but made no payments on between 1996 and 1999.
Boswell's case is being heard by Judge James B. Mohr in Vilas County Circuit Court.