Secretary of State News

Carnahan Slams the Door on Real Estate Investment Scam in Southwest Missouri

Mon, 22 Jun 2009 15:14:00 GMT

Jefferson City, Missouri — Officials in Secretary of State Robin Carnahan's office today issued a Cease and Desist Order against Morris A. Bird Sr. and M. Allen Bird Jr., for alleged securities fraud in a Southwest Missouri real estate investment scheme that cost investors in four states over $1.7 million.

According to the order, father and son team Morris and Allen Bird sold investors promissory notes and other investments by promoting annual returns of up to 54%. Morris Bird told investigators from the Missouri Securities Division that Chaparral I, LLC, a family operated company, took investors' money and disbursed the funds as directed by his son Allen Bird. Over $800,000 of investor funds were disbursed among real estate ventures that the Bird family controlled or were affiliated with.

It is also thought that some early investors received interest payments from funds belonging to subsequent investors, a key feature of a traditional Ponzi scheme.

"In this case, it seems that empty promises may have cost investors hundreds of thousands of dollars,” said Carnahan. "This is a prime example of why Missourians should check out investments and the people offering them before they turn over their hard-earned money, especially during these trying economic times.”

According to the order, Chaparral has generated no income and has no ability to repay the promissory notes. Morris Bird also stated that some of the money invested with Chaparral went to other businesses that his family controlled, including Turnpoint International I, LLC, based in Springfield. Money was even used to fund home improvements for one of Allen Bird's relatives.

It is also alleged that some investor money was sent to Greenleaf Companies, LLC, which was the subject of a different Securities Division Cease and Desist Order on December 16, 2008. On June 18, 2009, Greenleaf withdrew its request for a hearing on the facts in its case and is now facing civil penalties and other additional charges.

Morris and Allen Bird are charged with not being properly registered with the Securities Division and failing to disclose risks and other important information about the investments. Additionally, they were accused of not properly registering their investment offerings. The Birds and their company, Chaparral, LLC, have thirty days to respond to the order and request a hearing.

For more information regarding investments and fraud protection, or for information regarding a company or representative, visit the Secretary of State's online Missouri Investor Protection center at www.MissouriSafeSavings.com or call the toll free Investor Protection Hotline at 1-800-721-1996.

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To find out more about Missouri's Secretary of State's office, visit www.sos.mo.gov

Meeting Scheduled to Help Preserve Missouri History

Tue, 9 Jun 2009 16:04:00 GMT

Jefferson City, Missouri -- The Missouri State Archives will host a meeting on Tuesday, June 16, in Jefferson City, Missouri.� The last in a series of regional meetings, the event is intended to identify the needs of Missouri's historical records community so that future activities and grant funding can be used to support the programs of greatest benefit to the preservation of the state's past.

Any individuals interested in the assessment and planning effort are invited to attend the meeting on Tuesday, June 16, at 9:00 a.m. The meeting is being hosted by the Missouri State Archives at the State Information Center, 600 West Main Street, Jefferson City, Missouri.

The Missouri State Archives, a division of the Office of Secretary of State Robin Carnahan, was awarded a $20,000 grant from the National Historical Publications and Records Commission (NHPRC) to assess the condition of Missouri's historical records and plan for their future. This grant, which was accepted on behalf of the Missouri Historical Records Advisory Board (MHRAB), provides funding for a series of regional meetings and a survey of Missouri's historical records repositories.

Members of the board, along with staff from the Missouri State Archives and the State Historical Society, have conducted six meetings across the state.� This final meeting will provide an opportunity for those unable to make the other regional meetings to participate and will serve as a forum for summarizing the feedback obtained throughout the assessment process.� The MHRAB hopes to gather information from members of local historical societies, professional archivists, and historians that can be used to prepare an official report on the condition of Missouri's historical records and create a strategic plan for the future development of the state's historical records community.

The MHRAB is the central advisory board for projects relating to historic records that are developed and carried out within Missouri. Two of the board's primary duties are to award funds from the Local Records Grant Program and to review grant proposals submitted to the NHPRC. The Missouri State Archives and the State Historical Society, the state's leading repositories of public and private historical records, are assisting the MHRAB with its assessment and planning effort. For more information on the MHRAB or this initiative, please contact Alana Inman at (573) 526-1981 or alana.inman@sos.mo.gov.

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To find out more about Missouri's Secretary of State's office, visit www.sos.mo.gov.

Carnahan Reminds Missourians to Submit Photos for "Missouri in Motion" Photo Contest

Mon, 8 Jun 2009 14:37:00 GMT

Deadline for Photos June 19, 2009

Jefferson City, MO -- Secretary of State Robin Carnahan today reminded Missourians that they are still able to submit photos for the 12th biennial statewide photo contest for the 2009-2010 Official Manual, State of Missouri (commonly known as the "Blue Book"). The theme of this year's contest is "Missouri in Motion."

All Missourians are invited to enter the contest and may submit multiple photos as long as each is accompanied by its own entry form. Winning photos will appear in the 2009-2010 edition of the Official Manual scheduled for publication this fall.

"Missouri in Motion" photos should represent the many ways Missouri and its people move from place to place and time to time. Photos will be judged in one or more of the following three categories:

On the Move - photographs of transportation and travels in Missouri
Forces of Nature - photographs of the ever-changing Missouri weather and environment
Time to Play - photographs of family and friends playing sports

Missouri residents of all ages are eligible to participate in the photo contest. All entries must be postmarked or received by 5:00 p.m. on Friday, June 19, 2009.

Entry forms and contest rules are available on the Secretary of State's website at www.sos.mo.gov/photocontest, by e-mail at publications@sos.mo.gov or by mail at:

Official Manual Photo Contest
Office of the Secretary of State - Division of Publications
PO Box 1767
Jefferson City, MO 65102-1767

Photo contest winners will be chosen by a committee selected by Secretary Carnahan and will be featured in the next edition of the Official Manual. The winning photographers will also receive a personalized and signed copy of the Official Manual. Photo entries will become the property of the Secretary of State's Office and may be used in future publications, with full credit given to the photographer. Photographs will be added to the permanent collection of the Missouri State Archives.

To see the 2007-2008 Official Manual winning photos, visit: http://www.sos.mo.gov/BlueBook/2007-2008/1_Almanac.pdf#13.

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Carnahan to Observe Lebanon Election with Bipartisan Delegation

Fri, 5 Jun 2009 16:44:00 GMT

Secretary Carnahan Serves as Bipartisan Delegation Co-Leader for National Democratic Institute

Jefferson City, Missouri -- Secretary of State Robin Carnahan is serving as a co-leader of a bipartisan election observation team in Beirut, Lebanon, for the parliamentary election on June 7. The delegation, organized through the National Democratic Institute (NDI), will meet with political party representatives and candidates, election authorities, government officials and others concerned with electoral integrity in the country.

�"Fair elections are at the core of any democracy, and I am pleased to help bring international and domestic attention to the fairness of the Lebanese election process," said Carnahan.

Carnahan, who is widely respected as a leader in the field of election administration, was selected to be a co-leader of the 45-person delegation from 17 countries. Election observers play an important role not only in focusing attention on Election Day, but also on helping voters and local observers assess the overall fairness of the election and its results.

Since 1990, Carnahan has worked with NDI to monitor elections and train political and civic leaders in six countries. After the fall of the Berlin Wall, Carnahan worked in Eastern Europe helping rebuild the region's democracies and economies by drafting voting laws, training new political leaders and monitoring elections.

The National Democratic Institute has organized more than 150 international delegations to observe elections, pre-election environments and post-election developments. NDI led in developing the Declaration of Principles for International Election Observation and the Code of Conduct for International Election Observers, which was launched in October 2005 at the United Nations. Those standards have been endorsed by 32 intergovernmental and international nongovernmental organizations, which are engaged in promoting democracy and free and fair elections.

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To find out more about Missouri's Secretary of State's office, visit www.sos.mo.gov

Carnahan Announces Program on County Paintings and Historical Essays

Thu, 28 May 2009 16:15:00 GMT

Jefferson City, MO- Secretary of State Robin Carnahan announced today a program featuring artist Billyo O'Donnell and writer Karen Glines discussing their new book, Painting Missouri: The Counties en Plein Air. The program will be held at the Missouri State Archives, a division of her office, on Thursday, June 4, 2009, at 7:00 p.m.

In Painting Missouri, award-winning artist Billyo O'Donnell captures the state of Missouri by creating an outdoor painting on location-en plein air-for each of Missouri's 114 counties, plus St. Louis. Accompanying the images are essays by Karen Glines, who provides essential historical information about the counties, from interesting facts about their names to the stories behind their courthouses.

Drawing on her extensive research in local historical societies, Glines shares the early histories of the state's diverse regions, including local anecdotes, Civil War stories, and insights into the roles of Native Americans in regional history. Through a unique combination of words and art, the paintings and essays combine to create a rich portrait of the Show-Me state.

The Missouri State Archives is the official repository for state documents of permanent historic value, and is located at 600 West Main Street in Jefferson City. All programs at the Archives are free of charge and open to the public, with seating available on a first-come, first-served basis.

For more information on this and other programming at the Archives, contact Emily Luker, (573) 526-5296 or emily.luker@sos.mo.gov

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To find out more about Missouri's Secretary of State's office, visit www.sos.mo.gov

Carnahan Announces Availability of Thousands of Newly Restored Civil War Records

Wed, 27 May 2009 19:01:00 GMT

Jefferson City, MO - Secretary of State Robin Carnahan and St. Louis Circuit Clerk Mariano Favazza announced the completion of a federal grant project that will make over 11,200 Civil War-related cases from the St. Louis Circuit Court available to the public on May 29. The Missouri State Archives, a division of Carnahan's office, was awarded a $330,000 "We the People" grant from the National Endowment for the Humanities to preserve and index the court's case files from 1866-1868.

This collection of cases, to which the public had limited access prior to this project, contains information critical to understanding the economic and social issues of the Civil War. Within the case files are documents related to a variety of broad historical topics: steamboat commerce, westward expansion, African American history, including the Underground Railroad in Missouri and allegations of continuing slavery in post-war years and the wartime activities of well-known Missourians.

"These records give us a look into the lives of Missourians after the Civil War, when they sought to piece their lives back together using the court system," said Carnahan. "Looking through the documents is like stepping back in time, and I am proud that we can make that experience available to everyone."

"We the People" is a special designation given to grant projects "that significantly advance the teaching, study, and understanding of American history and culture." This Civil War project is part of the greater St. Louis Circuit Court Historical Records Project, started in 1999 to preserve and make accessible over four million pages of original court documents dating from 1787 to 1875.

In ten years, the Missouri State Archives and St. Louis Circuit Clerk Mariano Favazza have worked together to make nationally significant historical records available, including the original Dred Scott freedom suit petition and a series of cases related to Meriwether Lewis, William Clark, and the Corps of Discovery.

Archives staff have already processed Civil War-era cases from 1861-1863 and have almost completed cases from 1864-1865. Upon completion, the Archives will have indexed the entire series from 1861-1868, making all records of the St. Louis Circuit Court related to the Civil War available prior to the war's sesquicentennial in 2011.

Plans are underway to image the case files related to the Civil War for placement on the Missouri Digital Heritage website (www.MissouriDigitalHeritage.com). The Missouri Digital Heritage Initiative is a collaborative effort that dramatically expands the amount of information available online about Missouri's past.

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To find out more about Missouri's Secretary of State's office, visit www.sos.mo.gov

Carnahan Announces Final Settlement with UBS over Improper Sales to Senior Investors

Thu, 21 May 2009 20:30:00 GMT

Jefferson City, MO - Officials in the Securities Division of Secretary of State Robin Carnahan's Office entered into a final settlement with UBS Financial Services, Inc., for its failure to supervise an agent who made unsuitable recommendations to three Missouri seniors and to a mentally disabled adult.

From 2002 to early 2005, Robert T. Anderson, a UBS broker, misrepresented the net worth and annual income of senior investors to place them in variable annuities and mutual funds that generated commissions and sales credits for him. However, these investments were not appropriate for the customers' financial situations.

Additionally, Anderson wrongly completed account forms to show that a mentally disabled adult was a homemaker who had invested for 25 years. When, in fact, the investor had never lived apart from her parents, worked part-time at a fast food restaurant, and had little understanding of the trading that had occurred in her account.�

"Missourians should feel confident that my office will stop those who prey on seniors and people with disabilities," said Carnahan. "I am pleased that these investors will get their money back. It is important for all investors to ask questions about their investments and report suspicious activity so action can be taken."�

UBS agreed to pay over $62,000 in restitution to these investors and six others. In addition, UBS will pay $80,000 to the Missouri Investor Education and Protection Fund, $20,000 in penalties and over $7,000 in costs.

In a separate order issued in September, Anderson was censured, prohibited from selling certain products for a period of five years and ordered to turn over $8,000 in commissions that will be repaid to investors.

Cases like this show the need for stiffer punishments against those who target seniors and disabled investors. In fact, the recently passed "Senior Investor Protection Act," which was championed by Secretary Carnahan, will help further crackdown on this problem. The act creates a minimum statutory penalty for criminal securities fraud committed against senior or disabled individuals. The act also allows for mandatory restitution payments.

For more information regarding investments and fraud protection, visit the Secretary of State's online Missouri Investor Protection Center at www.MissouriSafeSavings.com or call the toll free Investor Protection Hotline at 1-800-721-7996.��

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Carnahan Stops Insurance Investment Scheme in Neosho

Tue, 19 May 2009 16:11:00 GMT

Jefferson City, MO - Officials in Secretary of State Robin Carnahan's office issued a Cease and Desist Order today against Neosho, Missouri-based Safe Harbor Financial LLC, Travis Winnett and Erron Wright, Jr., for securities fraud. The alleged fraud resulted in the loss of over $300,000 invested in a supposed insurance premium financing plan.

According to today's order, Winnett and Wright sold six Missouri investors Safe Harbor promissory notes, which offered a return of up to 15%. After persuading investors to transfer their money into specially created IRAs, Winnett would allegedly direct the money to Safe Harbor, in which he serves as president. The order alleges that over the course of six months, Winnett moved most of the money invested with Safe Harbor to his own personal account or used it to pay Wright.

"Investors should be wary of any deal with returns that sound too good to be true," cautioned Carnahan. "In these tough economic times, it's more important than ever before to research any investment as well as the person making the offer."

Winnett, a resident of Neosho and a licensed insurance agent, is currently subject to an August 2007 order issued by the State of Oklahoma requiring him to pay restitution to investors who had invested in Winnett's prior insurance premium financing plans. In the Oklahoma order, Winnett acknowledged that the plans are securities.

Winnett and Wright were not properly registered with the Missouri Securities Division, and no risks or other important information about the investments were ever disclosed to investors. Additionally, the investment products they offered were not properly registered. Safe Harbor, Winnett and Wright have thirty days to respond to the order and request a hearing.

This is the second action taken by Carnahan's office this spring involving insurance premium financing plans. On March 31, officials in Carnahan's office issued a cease-and-desist order against a St. Charles man and related companies involved in similar schemes.

Carnahan's Legislation Will Cut Red Tape for Missouri Business

Sat, 16 May 2009 00:18:00 GMT

Fees for some businesses will be cut by over 50 percent

Jefferson City, Missouri -- Secretary of State Robin Carnahan announced today that one of her legislative priorities, the "Red Tape Reduction Act," was passed overwhelmingly by the Missouri General Assembly as part of HB 481.

The over 400,000 business in Missouri are required to file corporate registration reports with the Secretary of State's Office.� This act will save businesses time and money by providing the option of filing these reports every two years rather than annually.� The act will also reduce the filing fee for Limited Liability Companies by over 50 percent and create efficiency by encouraging online filings.

"As a small business owner myself, I know what it's like to sort through a lot of bureaucracy and paperwork to get things done," Carnahan said.� "This act will help Missouri businesses grow by cutting government red tape and reducing the amount of time and money they have to spend to meet government requirements."

Since taking office, Secretary Carnahan has saved Missouri business nearly $10 million through online filings.� This act furthers Carnahan's commitment to increasing efficiency and streamlining business' interaction with government.� In addition to the optional biennial filing, the "Red Tape Reduction Act" allows businesses to change the month of their filing to match tax and other paperwork deadlines.

For more information on the Missouri Secretary of State's Office, visit www.sos.mo.gov.

Carnahan Applauds Passage of the "Senior Investor Protection Act"

Sat, 16 May 2009 00:13:00 GMT

Act will increase penalties for investment fraud targeting seniors

Jefferson City, Missouri —– Secretary of State Robin Carnahan announced today that one of her legislative priorities, the "Senior Investor Protection Act," was passed overwhelmingly by the Missouri General Assembly as part of HB 62.

As Secretary of State, Carnahan has prioritized protecting Missouri seniors from fraudulent investment schemes and has advocated for increased protections. The "Senior Investor Protection Act" significantly increases the penalties for fraudulent acts committed against senior and disabled individuals. Additionally, the act will make it easier for these investors to recover their savings.

"Since taking office, I have cracked down on those targeting seniors and worked to get restitution for the victims of fraud," Carnahan said. "This bill’s passage will ensure we can protect the citizens who are most often the victims of financial crimes."

In recent years, schemes targeting seniors have increased across Missouri and the nation, with over 5 million cases of financial exploitation of seniors reported annually. In response to this trend, Carnahan formed the Senior Investor Protection Unit in 2007. This special protection unit includes attorneys, investigators and education specialists that investigate unsuitable recommendations and cases of fraud against Missouri seniors.

In 2007, Carnahan’s office released a report on "free lunch" seminars, available online here, which found that they are often used to pressure seniors into unsuitable investments. In 2009, Carnahan filed rules that stop securities brokers and investment advisers from using misleading credentials targeted at senior investors.

The "Senior Investor Protection Act" will further deter the financial abuse of seniors in Missouri. The act creates a statutory penalty of $50,000 for fraudulent acts committed against senior or disabled individuals. The act also allows for mandatory restitution payments and an additional civil penalty of up to $5,000.

As Secretary of State, Carnahan has recovered over $9.5 billion for tens of thousands of investors. For more information regarding investments and fraud protection, visit the Secretary of State’s online Missouri Investor Protection Center at www.MissouriSafeSavings.com or call the toll free Investor Protection Hotline at 1-800-721-7996.

Carnahan Finalizes $400 Million Bank of America Auction Rate Securities Settlement

Thu, 14 May 2009 19:14:00 GMT

Stifel Inaction Prompts Another State Lawsuit

Jefferson City, Missouri —– Secretary of State Robin Carnahan announced today that her office finalized a settlement with Bank of America that provides relief for Missouri investors stuck with over $400 million in auction rate securities since that market failed in February 2008.

Under the consent order, Bank of America finalized its repurchase of auction rate securities held by its Missouri individual and small business clients, which was completed earlier this year. The order also provides other important relief for Missouri investors and orders Bank of America to pay $1.4 million to the Missouri Investor Education and Protection Fund.

"Bank of America did the right thing by giving investors immediate access to our money," said David LaMothe, an investor from Kansas City, Mo. "My broker told me that this was a guaranteed, liquid investment, so I was shocked to learn we had actually purchased long term bonds. I simply couldn’t wait years to get the access to my money that I was promised."

The Bank of America order is in contrast to the inadequate offer that Stifel Nicolaus has made to its auction rate securities customers. In March, Carnahan filed a civil action against Stifel Nicolaus for violation of securities laws. Stifel has announced a drawn-out buyback plan for its auction rate securities customers. Under the latest Stifel repurchase plan, many investors won’t receive full access to their money until 2012.

"While it is encouraging that firms like Bank of America understand the need to provide relief to investors, I am disappointed that Stifel doesn't feel its clients deserve the same," said Carnahan. "Stifel customers should not have to wait over three years for relief that so many other firms have already provided to their clients immediately."

Stifel is also now facing a regulatory action in another state. The Virginia Division of Securities and Retail Financing is alleging that Stifel engaged in dishonest and unethical business practices in its sale of approximately $8.4 million of auction rate securities to Virginia investors. The Virginia regulatory action also alleges that Stifel failed to supervise its agents and engaged in a fraudulent course of business.

Carnahan expects to finalize auction rate securities settlements with several other firms over the next few months, and will continue to fight for investor relief and to hold firms accountable in all auction rate securities cases that have not been resolved.

Carnahan Announces Folk Arts Festival Celebration

Tue, 12 May 2009 15:27:00 GMT

Jefferson City, MO - Secretary of State Robin Carnahan announced today a festival celebrating Missouri's folk arts. The festival will be held at Memorial Park in Jefferson City, on Saturday, May 16, 2009, from 9:30 a.m. to 3:30 p.m.

For the third year, Memorial Park will be the setting for a unique gathering of talented folk artists, musicians, and craftsmen. The festival will highlight Missouri's folk art traditions with music, storytelling, and decorative arts. The outdoor celebration will provide people of all ages the opportunity to view live demonstrations of traditional loom weaving, jewelry making, quilting, chair caning, soap making, and wood turning. Enjoy good food, a variety of craft vendors, and a beautiful park setting while listening to Ozark storytelling, Native American gospel songs, and old time fiddle tunes.

The event is free to the public, and is sponsored by the Missouri State Archives and the Friends of the Missouri State Archives.

For more information on this and other programming at the Archives, contact Emily Luker, (573) 526-5296 or emily.luker@sos.mo.gov

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To find out more about Missouri's Secretary of State's office, visit www.sos.mo.gov

CARNAHAN ASKS MISSOURIANS TO SUBMIT PHOTOS FOR "MISSOURI IN MOTION" PHOTO CONTEST

Mon, 11 May 2009 14:55:00 GMT

DEADLINE FOR PHOTOS JUNE 19, 2009

Jefferson City, Missouri -- Secretary of State Robin Carnahan today announced the beginning of the 12th biennial statewide photo contest for the 2009-2010 Official Manual, State of Missouri (commonly known as the "Blue Book"). The theme of this year's contest is "Missouri in Motion."

All Missourians are invited to enter the contest. Winning photos will appear in the 2009-2010 edition of the Official Manual scheduled for publication this fall.

"Missouri in Motion" photos should represent the many ways Missouri and its people move from place to place and time to time. Photos will be judged in one or more of the following three categories:

1) On the Move - photographs of transportation and travels in Missouri
2) Forces of Nature - photographs of the ever-changing Missouri weather and environment
3) Time to Play - photographs of family and friends playing sports

Missouri residents of all ages are eligible to participate in the photo contest. Participants may submit any number of photographs, but each photo must be accompanied by its own entry form. All entries must be postmarked or received by 5:00 p.m. on Friday, June 19, 2009.

Entry forms and contest rules are available on the Secretary of State's website at www.sos.mo.gov/photocontest, by e-mail at publications@sos.mo.gov or by mail at:

Official Manual Photo Contest
Office of the Secretary of State - Division of Publications
PO Box 1767
Jefferson City, MO 65102-1767

To see the 2007-2008 Official Manual winning photos, visit: http://www.sos.mo.gov/BlueBook/2007-2008/1_Almanac.pdf#13.

Meeting Scheduled to Help Preserve Eastern Missouri History

Tue, 5 May 2009 18:35:00 GMT

Jefferson City, MO - The Missouri State Archives will host a meeting on Tuesday, May 12, in St. Louis, Missouri. The sixth in a series of regional meetings, the event is intended to identify the needs of Missouri's historical records community so that future activities and grant funding can be used to support the programs of greatest benefit to the preservation of the state's past.

Any individuals interested in the assessment and planning effort are invited to attend the regional meeting for eastern Missouri on Tuesday, May 12, at 1:00 p.m. The meeting is being hosted by the hosted by the St. Louis County Library, 1640 S. Lindbergh Blvd, St. Louis, Missouri.

The Missouri State Archives, a division of the Office of Secretary of State Robin Carnahan, has been awarded a $20,000 grant from the National Historical Publications and Records Commission (NHPRC) to assess the condition of Missouri's historical records and plan for their future. This grant, which was accepted on behalf of the Missouri Historical Records Advisory Board (MHRAB), provides funding for a series of regional meetings and a survey of Missouri's historical records repositories.

Members of the board, along with staff from the Missouri State Archives and the State Historical Society, will conduct seven meetings across the state. Through these meetings, the MHRAB hopes to gather information from members of local historical societies, professional archivists, and historians that can be used to prepare an official report on the condition of Missouri's historical records and create a strategic plan for the future development of the state's historical records community.

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To find out more about Missouri's Secretary of State's office, visit www.sos.mo.gov

Carnahan Recovers Over $145,000 for Missouri Investors Caught in Foreign Currency Trading Scheme

Tue, 5 May 2009 14:54:00 GMT

Jefferson City, MO - Secretary of State Robin Carnahan's office today secured $146,050 in restitution for eight investors who suffered heavy losses when their broker, an agent of Princor Financial Services Corporation, inappropriately placed their savings in a foreign currency trading program.

Princor, with an office in Chesterfield, has agreed to reimburse investors as a result of the firm's failure to supervise one of its agents, Dorian Saunders, and his outside trading activity.

"During these tough economic times, investors should always double check to make sure the investments they are getting into are legitimate," said Carnahan. "I am pleased that we were able to stop this scheme and get these investors their savings back."

Beginning in early 2007, Saunders opened accounts for some of his Princor clients at a foreign currencies trading firm run by his brother. Saunders recommended that these clients cash in investments that he had previously sold them and invest that money in foreign currency trading.� The eight clients who invested in foreign currencies through Saunders eventually lost all of their funds.

"I was told that I would get regular checks in the mail, but months went by and nothing ever showed up" said Shirley, a St. Louis area investor. "I trusted him when he promised this was a good investment. Now I know that I should always check it out first."

The consent order entered today finds that Princor was aware of Saunders' outside foreign currencies trading, and requires Princor to pay back all of the funds lost by the eight impacted investors, six of which reside in Missouri.

"I feel like I was preyed on by my broker," said Michael, an investor from Bourbon, Mo. "I was cleaned out of $7,000 and left with a balance of 25 cents. It's good to know that this incident is not going unpunished and that the company is taking responsibility for its employee."

In November, Saunders was barred from the securities industry. Saunders' "selling away" or completing transactions for Princor clients outside the firm's books and records is specifically identified as a dishonest or unethical business practice under Missouri law.� In addition to paying full restitution to the investors, Princor has also agreed to make a $75,000 payment to the Missouri Investor Education and Protection Fund, and to pay the costs of the Division's investigation.

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