Some Counts Reversed for Man in Reagan Scam

Some counts against a business promoter convicted of swindling President Reagan’s son, Michael, and others in a gold mining stock scheme were reversed Wednesday.

But the 2nd District State Court of Appeal affirmed guilty verdicts on two grand theft counts.

The court also allowed 15 counts of violating California law by selling securities without a permit to stand against Richard F. Carey, 47.

Overturned by the appellate court were 10 counts of misrepresentation in the sales of securities. The district court ruled that the Los Angeles Superior Court trial judge failed to instruct the jury that their verdicts on those counts should be unanimous.

Free on Bail

Carey, who was convicted on 27 of the 68 charges originally brought against him, was sentenced in April, 1984, to three years and eight months in prison. Deputy Dist. Atty. James Green, the prosecutor, said Carey has been free on bail pending the appeal.

Michael Reagan, who was working at the time as a boat salesman in the San Fernando Valley, testified during the trial that he invested $1,500 in the stock scheme that initially involved a purported gold mine in the Philippines.

Others, including Reagan’s associates at the boat business, reportedly invested about $370,000.

Carey was acquitted by the jury of swindling actress Terry Moore out of nearly $200,000 by borrowing against her house--allegedly without her permission--after moving in with her during what the appellate court called a “stormy relationship.”