Rick T. McCullough pleaded not guilty Tuesday to charges of fraud, theft, securities fraud, sale of unregistered securities and transactions

Rick T. McCullough, a Phoenix mortgage broker, pleaded not guilty Tuesday to charges of fraud, theft, securities fraud, sale of unregistered securities and transactions by unregistered dealers or salesmen. McCullough, 35, was indicted by the Arizona State Grand Jury June 23. As president of licensed mortgage broker CactusCash Inc. McCullough allegedly devised a scheme to secure equity from homes owned by senior residents in Phoenix, according to Attorney General Terry Goddard. McCullough allegedly convinced homeowners to refinance their homes through his business and then persuaded them to invest the equity received into CactusCash. The indictment alleges McCullough said he personally guaranteed the loans, failed to invest the funds in real estate and lacked assets to guarantee the loans. McCullough's next court appearance is scheduled for Aug. 4. He was released on $46,000 bond and faces up to 25 years in prison if convicted on all charges, according to the AG. The indictment is the result of an investigation by the Securities Division of the Arizona Corporation Commission and the Department of Financial Institutions.