A motion to dismiss security fraud charges against brothers 40 year old David Eliason and 38 year old Brian Eliason were denied this week in Vilas County court by substitute Judge Leon Stenz.
Each face 10 Class H felony counts filed last February that allege up to 31 investors lost in excess of $2.8 million due to misstatements and omissions to investors. Prosecutors allege Eliason's failed to disclose severe financial problems with 2008 financials showing net loses of $28 million and debts exceeding assets of $63 million.
Defense attorneys argued the statute the Eliason's are charged under was vague.
Special prosecutor assistant Attorney General Amber Hahn argued the material has been well defined for 75 years and therefore the statute is not vague. Judge Stenz agreed indicating the current terms are relatively well defined not so vague as to be misleading and denied the motion to dismiss. A preliminary hearing will be set in September and is expected to last a full day.
