FOR IMMEDIATE RELEASE
Monday, December 20, 2010
Contact: Laura Egerdal, (573) 526-0949
Carnahan Takes Action Against New York Broker for Improper Investment Offers to Missourians
Jefferson City, Missouri - Missouri Secretary of State Robin Carnahan today announced that a New York stock broker could face thousands of dollars in fines after cold-calling a Missourian to solicit investments. Unfortunately for the broker, the Missourian he allegedly called happened to be an employee of Carnahan’s Securities Division. The broker, Sukhwan Michael Yun, is not registered to offer securities in Missouri as required by law. This action comes just three weeks after two New York stock brokers with a separate firm repeatedly called the same staff member in Carnahan’s office with similar investment offers.
According to a Cease and Desist order issued late last week, Sukhwan Michael Yun works at New York broker-dealer Meyers Associates, L.P. (“Meyers”). In December 2010, he allegedly cold-called a Securities Division staff member’s work telephone in the James C. Kirkpatrick State Information Center. During that call, Yun allegedly offered securities, attempted to transact a purchase over the phone, and offered to be the staff member’s personal broker.
"Missourians should take extreme caution when considering investment opportunities promoted through unsolicited telephone calls," Carnahan said. "Before you hand over your savings, I strongly encourage anyone considering a new investment to call the toll-free Missouri Investor Protection Hotline to make sure it is properly registered."
Yun is registered in New York, California, Virginia, Minnesota, and Illinois as an agent of Meyers, but was not registered in Missouri at the time of the solicitation. Agents must either be registered in the states where they solicit the sale of securities, or be exempt from registration. Yun is also charged with failing to disclose material facts during his solicitations, including that he was not registered in Missouri, and that the agent was violating his broker-dealer's policies and procedures by offering securities in States where he was not registered. Meyers is charged with employing unregistered agents.
Meyers and Yun could be fined more than $30,000 for these violations and could be ordered to pay the costs of the Securities Division's investigation. The Division's investigation into Meyers's possible failure to reasonably supervise it agents in ongoing.
In late November, officials in Carnahan’s Securities Division issued a Cease and Desist order against two New York-based brokers and their California-based employer, Financial Network Investment Corporation, for similar violations related to cold-calling the same employee in his Securities Division office.
For more information regarding investments and fraud protection, or for information regarding a company or representative, call the toll free Investor Protection Hotline at 1-800-721-7996 or visit the Secretary of State's online Investor Protection Center at www.MissouriSafeSavings.com.
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