United States Attorney John C. Richter

Western District of Oklahoma

September 30, 2008

CONTACT: Bob Troester

                405/553-8999

WAGONER MAN SENTENCED TO SERVE 10 YEARS IN FEDERAL PRISON AND
PAY MORE THAN $1 MILLION IN RESTITUTION FOR FRAUDULENT INVESTMENT SCHEME

Muskogee, Oklahoma - PHILLIP LEVAUGHN RAGLIN, 23, of Wagoner, Oklahoma, was sentenced by United States District Judge Ronald A. White in the Eastern District of Oklahoma to serve 120 months in federal prison, followed by three years supervised release, and ordered to pay $1,070,560.00 in restitution to victims for money laundering in connection with a fraudulent investment scheme. This case was 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.

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. From July 2006 through December 2006, Raglin devised a scheme where he sold memberships in Raglin Industries. 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.

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, 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.

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.

Raglin was originally indicted in April of 2008. In May of 2008, Raglin pled guilty to money laundering.

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.