United States Attorney John C. Richter Western District of Oklahoma April 23, 2008 CONTACT: Bob Troester                 405/553-8999

INDICTMENT UNSEALED CHARGING WAGONER MAN WITH SECURITIES FRAUD, WIRE FRAUD, MAIL FRAUD, AND MONEY LAUNDERING IN TWO SEPARATE INVESTMENT SCHEMES

Muskogee, Oklahoma —John C. Richter, United States Attorney for the Western District of Oklahoma, announced today that a federal grand jury in the Eastern District of Oklahoma has returned an indictment against PHILLIP LEVAUGHN RAGLIN, 23, of Wagoner, Oklahoma, for securities fraud, wire fraud, mail fraud and money laundering in connection with two separate fraudulent investment schemes. This case is being prosecuted by Western District Assistant U.S. Attorney Susan Dickerson Cox, who has been specially appointed by the Attorney General on this case following the recusal of the United States Attorney’s Office for the Eastern District of Oklahoma.

First Scheme

According to the indictment, Raglin did business in 2006 as Raglan Industries, LLC ("Raglin Industries") but neither Raglin nor Raglin Industries was a registered investment advisor or broker-dealer within the State of Oklahoma. The indictment alleges that from July 2006 through December 2006, Raglin devised a scheme where he sold memberships in Raglin Industries. It is alleged that Raglin held himself out to be a multi-millionaire businessman experienced in investments and who described Raglin Industries to potential investors as a highly profitable company investing in securities and real estate around the world and as an investment firm possessing unique computer software under patent application which enabled him to make optimum trading decisions to maximize profit .

The indictment alleges that Raglin assured investors a 30% monthly return on their investments with guaranteed monthly pay-outs, promised these potential investors that their principal investment was without risk because it was insured, he was in full compliance with the laws of the State of Oklahoma, and gave investors the option to roll-over their return into additional investments. As a part of the scheme to defraud, the indictment alleges, Raglin made monthly pay-outs to early investors using funds of later investors in order to lull investors into believing Raglin Industries had legitimately invested their funds, to promote future investments by new investors, and to prevent early detection of the scheme to defraud.

The indictment alleges that Raglin did not invest funds as investors were told, but instead deposited investor funds into several bank accounts in his control for his own personal benefit and for the benefit of his family and associates.  As a result of this scheme to defraud, approximately 200 investors lost over $900,000.00, according to the indictment.

Second Scheme

It is alleged that in 2007 and 2008, Raglin held himself out as "Mel Cooper," General Partner of Divine Development, LP (“Divine Development”), and sold memberships in Divine Development and offered a "leveraged equity capital program" for funding real estate projects where Divine Development would serve as the managing partner with an investor (or “venture partner”) to secure funding for the investor’s business or real estate project. It is alleged that the investor was required to wire a program fee to Divine Development’s bank account in Tulsa, Oklahoma, and wire escrow funds to an escrow company. In this scheme, Ragland is charged with wire fraud related to emails associated with the program fees.

If convicted, Raglin faces up to 20 years in prison, a fine of up to $5,000,000, and restitution.The public is reminded that the indictment is merely an accusation and that the defendant is presumed innocent unless and until proven guilty. Reference is made to the indictment for further information.

The case is the result of an investigation conducted by the Federal Bureau of Investigation and the Criminal Investigative Division of the Internal Revenue Service, in cooperation with the Oklahoma Department of Securities.