Jefferson City, Mo. — Secretary of State Jay Ashcroft ‘s Securities Division ordered an unregistered agent and six businesses to cease and desist after finding the respondents sold unregistered, non-exempt securities to Missouri investors. The division also ordered respondents to pay restitution and interest of more than $2.3 million, as well as civil penalties of $261,000 and investigation costs of more than $7,000.
Chadwick W. Brooks offered and sold the unregistered securities while employed at ABM Management, Inc.-Washington; ABM Management, Inc.-Nevada; ABM Management, Intl., Ltd.; Amcap Premier, LP; Doctors Investment Group, LP; and Cloud Nine Investments, LLC. The division is ordering the six businesses to cease and desist for employing Brooks, an unregistered agent. The order also states that Brooks and the businesses omitted to state material facts in order to obtain funds from an elderly Missouri resident.
From approximately 2002-13, Brooks solicited at least $2 million from Missouri and Kansas investors, purportedly to be invested in Doctors Investment Group and Amcap Premier, among other businesses. Brooks failed to disclose that he was not registered to offer or sell securities in Missouri. He also failed to provide year-end financial statements to the investors, as promised in the offering documents.
All investors received yearly returns until 2015, when payments stopped. Brooks no longer answers investors’ telephone calls or emails and is believed to be in the Republic of Panama.
“Investors should independently verify all investment opportunities, as well as the background of the individual, company and offering before investing,” Ashcroft said. “Our Securities Division can provide detailed information about registered individuals who sell securities and provide financial advice, as well as verify the registrations of the products being sold.”
“Do your homework and check to see if someone is currently registered in Missouri before parting with your hard earned money, because it may be the last you see of that person or your money,” Securities Commissioner David M. Minnick said. “A phone call to us is a preemptive measure that is always a wise investment.”
Ashcroft urges all investors to know the risks. If you have any questions about an investment opportunity or wish to check the background and registration status of a financial adviser, please call the toll-free investor protection hotline at 800-721-7996, or go online to www.sos.mo.gov/securities to file a complaint.