FOR IMMEDIATE RELEASE
Wednesday, February 20, 2013
Contact: Liz Abram-Oldham, (573) 526-0949
Kander takes action against Ladue agent for using client funds for personal use
JEFFERSON CITY, MO. Ė Missouri Secretary of State Jason Kander today announced an enforcement action against Greg John Campbell of Ladue, concerning alleged unauthorized transfers from client accounts in excess of $1.5 million while Campbell sold securities to Missouri investors.
According to the petition filed by Kander's Securities Division, Campbell allegedly transferred funds from three clients' accounts for personal expenses, including loan payments on Campbell's residences in St. Louis and Boston, payments to BMW for a car lease, and payments to other Campbell clients. The petition alleges that Campbell used fraudulent authorization letters to transfer funds from client accounts.
The petition alleges Campbell made unauthorized transfers in excess of $1 million from an account belonging to an 86-year-old client who suffers from dementia and is currently residing in an assisted living center.
Additionally, the petition alleges that some of Campbell's clients stopped receiving account statements because their addresses were changed without the clients' consent. When questioned, Campbell allegedly claimed the address changes were the result of an administrative error and provided one client with an account statement on company letterhead reflecting an account balance in excess of $78,000. However, the client subsequently learned their account contained less than $9,000.
"Follow up with your agent if you notice any unusual activity or something you don't understand, and ask to speak with a manager or supervisor if you have concerns with the information provided by your agent," Kander said. "If issues are not corrected, contact the brokerage firmís home office and contact my office so we can try to help."
The petition alleges that Campbell committed fraud by engaging in an act, practice, or course of business that operated or would operate as a fraud or deceit by using client funds for Campbell's personal use.
The Cease and Desist Order issued by officials in Kander's Securities Division prohibits Campbell from further violating the law by lying or by omitting material facts while interacting with clients. Campbell faces up to $35,000 in penalties and costs and the possibility of paying restitution and disgorging money Campbell received. Campbell has 30 days to request a hearing on this matter. The securities division is cooperating in this matter with other governmental and/or law enforcement agencies.
For more information regarding investments and fraud protection, or for information regarding a company or representative, visit the Secretary of State's online Investor Protection Center at www.MissouriInvestorProtection.gov or call the toll free Investor Protection Hotline at 1-800-721-7996.
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