FOR IMMEDIATE RELEASE
Wednesday, February 21, 2007
Contact: Carrie Bebermeyer, (573) 526-0949
Contact: Ryan Hobart, (573) 526-4734

Real Estate Scheme is Money Pit, Says Carnahan

Jefferson City, Missouri - Secretary of State Robin Carnahan’s Commissioner of Securities, Matt Kitzi, issued a Cease and Desist Order against a Springfield, Mo., couple for their alleged violations of Missouri securities laws in connection with a questionable real estate investment scheme.

The order claims that from March 2005 to the summer of 2006, John and Alesia Sheehan persuaded at least 19 investors to put more than $1 million into their real estate ventures. They promoted investment opportunities through a website that enabled them to reach investors as far away as Australia.

Among those mentioned in the order are two Missouri residents who invested nearly $50,000 in the Sheehans’ companies to purchase, rehabilitate and sell real estate for a profit.  One Missouri resident was told that he was purchasing an interest in a property in Kansas City, Mo., while the other was told that he was purchasing an interest in two separate properties in Springfield.  Both investors were promised 50% of the profits from the sale or lease of the property they invested in. 

The Sheehans are suspected of selling multiple 50 percent interests in individual properties, including selling an investment in the same Springfield property to at least six individuals.

It is also alleged that the Sheehans never registered the securities they offered and that they failed to provide necessary information to their investors.  One omission involved John Sheehan, operating under the alias John Michael, referring a potential investor to Alesia Sheehan for a testimonial from someone who had “done deals” with him in the past, without ever revealing that the two are married.

“In order to protect their hard-earned money, Missouri investors should carefully check the background of anyone offering them an investment opportunity, including those found on the Internet,” said Carnahan.  “One call to our toll free investor hotline could prevent investor fraud and protect Missourians from potential con artists.” 

The order claims that the Sheehans accepted money from investors and placed the money into accounts that were mixed with their personal funds. These funds were then used to pay off other investors and various personal expenses such as cars, a pool, a spa and a vacation. Neither Missouri resident has had any money returned to them from the Sheehans.

For more information regarding investments and fraud protection, or for information regarding a company or representative, call the Missouri Investor Hotline toll-free at 1-800-721-7996 or visit the Secretary of State's web site at www.sos.mo.gov/securities.

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