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Securities News Releases
Wednesday, August 30, 2006
Contact: Stacie Temple, (573) 526-5076
Contact: Carrie Bebermeyer, (573) 526-0949
Carnahan Stops Father and Son From Improper Investment Sales
Jefferson City, Missouri -- Secretary of State Robin Carnahanís Commissioner of Securities, Matt Kitzi, recently ordered Dennis Edwards of Independence, Missouri to stop the unlawful sale of securities.
The order stops Dennis Edwards from offering unregistered promissory notes to Missouri residents under the guise of buying an interest in an insurance business. From 2003 to 2005, Edwards issued promissory notes to three Kansas City-area residents who invested a total of about $250,000. To date, none of the investors have received any money back.
According to the order, some of the investors’ funds were paid directly into the bank account of Edwards’ son, Jordan Edwards, instead of being invested in the insurance company. The younger Edwards, a Missouri licensed insurance agent living in the state of California, then signed books of blank checks for that account and gave them to his father.
In one instance, Edwards allegedly took more than $20,000 from an 82-year old Missouri woman and failed to make payments on a promissory note for her original investment plus $5,000.
The order states that Edwards failed to properly register his promissory notes and made untrue statements or failed to disclose important information to investors while promoting the investments.
This is not the first time the Securities Division has taken action against Dennis Edwards for questionable activities related to investments. In both 1993 and 2003, Edwards was ordered to stop selling unregistered securities under various scenarios. He was also referred to and prosecuted by the U.S. Attorney in one case.
“I encourage Missouri investors to carefully check the background of anyone offering them an investment opportunity,” said Carnahan. “A quick call to the toll-free investor hotline might have prevented these Missourians from turning over their hard-earned money to someone with a very checkered past in the investment field.”
A consent order was also signed with Jordan Edwards, concerning his involvement with his father’s activities. The consent order prohibits him from further involvement in the sale of unregistered securities, and includes an agreement to cooperate in the ongoing investigations. Jordan also agreed to relinquish his insurance license and will not seek insurance registration in the state of Missouri for five years.
For more information regarding investments and fraud protection, or for information regarding a company or representative, visit the Secretary of State’s web site at www.sos.mo.gov/securities or call the toll-free investor hotline at 1-800-721-7996.