Sep 8

Danny Ray Digman Sr. of Austin, the former Chairman of the Board of Paymentworks, Inc., an ATM machine company, pleaded guilty on Sept. 8, 2004 in the 331st Judicial District Court, Travis County, Texas to securities fraud, selling unregistered securities and selling securities while not registered as a dealer or agent.

Digman was sentenced to a 12-year prison term for the securities fraud conviction and 10-year prison term for each of the remaining counts. The sentences will run concurrently.

Texas Securities Commissioner Denise Voigt Crawford entered an Emergency Cease and Desist Order against Digman and PaymentWorks on Aug. 4, 2003, alleging fraud in the sale of securities in an investment program that relied on the profits from ATM machines.