2 infomercial investment stars indicted

Two self-proclaimed stock-trading experts who used infomercials and hotel seminars to sell an investment system have been indicted on federal fraud charges.

Linda Woolf, 48, of Sandy, Utah, and David Gengler, 34, of Draper, Utah, portrayed themselves as successful investors and persuaded consumers to pay $3,000 to $40,000 each to learn the Teach Me to Trade system, according to an indictment filed in federal court in Alexandria, Va.

In fact, the government said, Woolf and Gengler reported little or no profit on their federal tax returns.

Woolf made $4 million in commissions for selling Teach Me to Trade products, while Gengler made $2.25 million, according to the Securities and Exchange Commission.

The commission filed separate civil fraud charges against the two.

“The allegations depict a cold-hearted scheme that preyed on the elderly, the desperate and even the unemployed by promising financial security,” SEC Chairman Christopher Cox said in a statement issued by the agency.

Regulators are targeting investor workshops as part of an effort to protect retirees and others from unsuitable and fraudulent advice.

Woolf’s civil attorney, Mark Pugsley, said that Woolf never recommended specific stocks at her seminars and that the information she provided was unrelated to individual investment choices and therefore wasn’t a crime under federal securities laws.

“The SEC’s complaint contains a novel theory of securities fraud, and we look forward to challenging it in the courts,” Pugsley said. “Linda Woolf is an educator; she does not sell securities.”

Gengler’s lawyer did not return a call seeking comment.