SALT LAKE CITY -- A Bountiful man is accused of soliciting investments for a device that would supposedly download rental movies with new technology that was "better than Netflix."
David Bruce Buttars, 52, appeared in 3rd District Court on Monday. He is charged with seven second-degree felony counts, four third-degree felony counts and one class A misdemeanor, alleging securities fraud, theft and pattern of unlawful activity.
His partner, Whitney Keith La Count, 55, Park City, was also charged with three second-degree felony counts and four third-degree felony counts involving securities fraud and pattern of unlawful activity.
The two men are executives with Movieblitz North America and Ellipse Technology and accused of defrauding six victims out of $69,500. The victims live in Washington, Weber and Summit counties.
According to court documents, the defendants told investors they needed money to develop a "thumb-drive-like device," or chip, for downloading and viewing movies. They said they were working with a "genius" who helped develop the stealth bomber and was using that technology for the device.
Investors were told the key-chain sized device could download 20 to 30 movies and plug directly into a TV. Customers could select how long they wanted the movie and then erase it without worrying about returns or facing late fees. They were also told the movies could be downloaded from kiosks that would be distributed worldwide.