- Missouri Investor Protection Center
- Investor Education
- Check Out Your Broker or Adviser
- File a Complaint
- Statutes and Regulations
- Investor Protection & Securities Newsletter
- Contact Us
Securities News Releases
Thursday, July 06, 2006
Contact: Stacie Temple, (573) 526-5076
Contact: Mike Seitz, (573) 526-0949
Carnahan Takes Action against Alleged Bank Scam
Raymore Man Accused of Defrauding Missourians out of Millions
Jefferson City, Missouri -- Missouri Secretary of State Robin Carnahan's Securities Commissioner, Matt Kitzi, issued a Cease and Desist Order yesterday against Carl R. Todd of Raymore, Missouri.
Todd was allegedly participating in an overseas banking scam, commonly called a “Prime Bank Scheme,” in which investors are offered high-yield, tax-free returns through supposed access to the investment portfolios of the world’s “elite” banks. In fact, these “prime banks” do not exist and the scam artists have no intention of creating a profit for anyone but themselves.
The order states that Todd and CRT Enterprises defrauded at least 17 Missourians – many of whom were from the Raymore area – out of approximately $2.7 million. These fraud victims were told that an investment in Todd’s bank trading program carried no risk of losing money and that they would receive an 18% annual return on their investment. They were also told that the elite bank trading program was commonly used by very wealthy individuals.
None of the fraud victims ever received the financial returns promised by Todd or a refund of their money. Instead, Todd took over $250,000 from the victims’ accounts for his salary and personal expenses.
“Promises of high returns, no risk and one-of-a-kind opportunities, like the ones made in this case, are often telltale signs of investment fraud,” said Carnahan. “Investors should beware of claims that sound too good to be true, and contact our office’s Securities Division before putting their hard-earned money at risk.”
Todd and his company, CRT Enterprises, LLC - along with Platinum Financial Advisors, LLC (also known as Platinum-Sterling Financial Advisors, LLC); Richard E. Riner of San Marcos, Texas; Sterling Meridian, LLC; and Ronald J. Linn and Glenn E. Maske of Las Vegas, Nevada - are suspected to have committed investment fraud by selling nonexempt, unregistered securities. They also allegedly violated securities laws by omitting facts and making untrue statements in connection with the sale of investments in Missouri.
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 http://www.sos.mo.gov/securities/ or call the toll free investor hotline at 1-800-721-7996.