FOR IMMEDIATE RELEASE
Tuesday, March 20, 2012
Contact: Ryan Hobart, (573) 526-0949
Carnahan Takes Action Against Kansas Man With Long History of Securities Fraud
Jefferson City, MO– Missouri Secretary of State Robin Carnahan today announced an enforcement action against Danny Moore of Lenexa, Kan., and his company, Moore Financial Management, concerning misuse of investor funds from his supposed investment company.
According to the cease and desist order issued by officials in Carnahan’s Securities Division, Moore and his company raised over $1.4 million from at least 30 investors, 22 of whom were Missouri residents. Many of these investors were elderly friends and acquaintances of Moore.
In 2009, Moore was convicted of securities fraud in Johnson County, Kan. While on probation for that felony conviction, Moore allegedly raised money from investors, often using funds from new investors to repay earlier investors, in classic Ponzi-scheme fashion. In addition to the felony conviction for securities fraud, Moore was the subject of three enforcement orders from the Kansas Commissioner of Securities, none of which were disclosed to his new investors.
“It is important for investors to contact the Investor Protection Hotline before turning over their hard-earned money,” Carnahan said. “If the person offering an investment has been arrested or the subject of an enforcement action, that can all be discovered with one quick, toll-free call.”
The order alleges that Moore provided investors with promissory notes in Moore Financial Management and told them their funds would be used for advertising or to take over other companies. Moore allegedly has a total of approximately $900,000 in outstanding promissory notes. Bank records uncovered by Securities Division investigators allegedly reveal the money collected from investors was used to pay Moore’s income taxes, mortgage payments, employee salaries, rent, insurance, warehouse club membership fees and other Moore investors.
The order states that Moore pitched a 79-year-old resident of Raytown, Mo., to invest in his scheme. Moore allegedly convinced the elderly man to surrender an annuity worth over $226,000, incurring over $13,000 in surrender charges, which would have funded his investment. Moore is charged with utilizing high pressure tactics in an attempt to persuade the elderly man.
The order alleges that Moore and Moore Financial Management offered and sold unregistered securities and committed securities fraud. Moore and his company face up to $180,000 in penalties and costs and the possibility of paying restitution to harmed investors. The Respondents have 30 days to request a hearing and contest this matter. The Securities Division is cooperating in this matter with other law enforcement and government agencies.For more information regarding investments and fraud protection, visit the Secretary of State’s online Investor Protection Center at www.MissouriInvestorProtection.gov or call 1-800-721-7996.
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To find out more about Missouri's Secretary of State's office, visit www.sos.mo.gov
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