The owner and president of HelpMed, a Utah medical recruitment firm, pleaded guilty June 18 in federal court to one count of securities fraud, according to the US Department of Justice. Ryan Lynn Cook had been arrested in May after trying to lure an investor to the desert, saying he had a gun and was going to do something drastic, The Salt Lake Tribune reported.

Cook, of Highland, Utah, represented to potential investors that he was willing to sell a 10% ownership interest in his company through the issuance of company stock in exchange for $2 million according to the US Attorney’s Office.  

Cook represented to investors that HelpMed earned approximately $3.8 million in revenue in January and February 2015 when the company had no revenue, according to the US Attorney’s office. Cook also claimed the company had more than 12,000 healthcare providers in its system ready to be connected with hospitals and clinics when it had approximately 100. He also claimed there were more than 8,000 hospitals in the company’s system when it contained about five.

He also represented to potential investors that HelpMed’s software developer had signed a non-disclosure agreement with a senior official from the Department of Labor and was being paid $40,000 per month on the agreement, when in fact, there was no such agreement.

Cook directly solicited two investors and received approximately $2 million from about five individuals who invested in his scheme, according to the US Attorney’s Office.

Cook was arrested on a federal warrant after the May 11, 2015, incident in the west desert, according to the US Attorney’s Office. Cook drove to the west desert and called one of his investor victims claiming he was being followed, a person identified in the complaint as the “Software Developer” had been kidnapped by the government, and that the government had stolen his truck. Later, Cook asked the investor to come out to the west desert and take his (Cook’s) gun from him or he was going to do something drastic, according to the complaint. The investor called 911 and Cook was subsequently arrested.

Federal prosecutors and Cook agreed to recommend the court impose a 24-month sentence to be followed by two years of supervised release. Cook agreed to pay $1,974,250 in restitution to the victims in the case, and to forfeit a car, money and property that were proceeds of the crime.

Sentencing in the case is set for Sept. 9, 2015.