Will this investor lose an important Missoula building?

A Utah investor who stirred up a major controversy 3-years ago to redevelop the former Missoulian newspaper building is pleading "not guilty" to charges of stealing some $ 40 million from investors.

Federal prosecutors say Aaron Wagner and his co-defendant Michael Mains used the money for "lavish personal spending" to give the "false illusion of a successful business record" to lure investors.

The case first came to light in late October, and Wagner pled "not guilty" this week. Mains is due in court in Salt Lake in early December.

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Why the controversy over the Missoulian location

In 2021, Wagner partnered up with former Grizzly football star Cole Berquist on a plan to demolish the former Missoulian building on the "Hip Strip", off the Beartracks Bridge, replacing it with a new development. Those ideas included retail shops and restaurants but caused an outrage when the idea was floated for including a high-rise apartment or condominium complex on the city's waterfront along the Clark Fork River.

The rezone was approved by the city but plans never progressed.

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What are the new accusations?

In late October we learned that Wagner was accused of wire fraud and money laundering. Prosecutors say that included an attempt to open 10 "Hello Sugar" restaurants. They say Wagner told investors he'd already opened 50, when prosecutors say it was only 15.

Prosecutors say Wagner would use funds from investors to give them a "false illusion" of his success. They say he would "post pictures of his conspicuous spending on his marketing channels, all without disclosing that his exotic cars, personal jets, multimillion-dollar homes, and extravagant lifestyle were actually funded by theft."

When investors became critical of what was going on, investigators say Wagner would "bully them into silence."

Even when projects were successful, prosecutors say Wagner and Mains would "siphon money to themselves" before calculating how to split profits. For example, in one instance, prosecutors say the pair took approximately $400,000 out of eight Crumbl cookie stores, using the dollars as "shift leads" to make it look like employee's wages instead of "to themselves." 

Among other penalties, prosecutors are seeking forfeiture of the Missoula property.