FOR IMMEDIATE RELEASE
Monday, February 23, 2009
Contact: Laura Egerdal, (573) 526-0949
Contact: Ryan Hobart, (573) 526-4734
Carnahan Stands Up for Cheated Lottery Winner
Jefferson City, Missouri —– Officials in the Securities Division of Secretary of State Robin Carnahan’s Office issued a cease and desist order today against a Kansas City man alleged to have illegally advised and sold securities to a Missouri resident who won the lottery.
"Whether by receiving an inheritance or winning the lottery, anyone who comes into a financial windfall needs to be especially cautious with their finances," warned Carnahan. "Unfortunately, folks who receive sudden or unexpected wealth are often the target of con artists. My office will continue to watch out for all Missouri investors, and take action to protect their life savings from fraud."
After winning $164,000 in the lottery, a Missouri resident asked Glenn Boxwell for a recommendation on how to invest her money. The investor had known Boxwell for over 30 years. Boxwell, who is not registered as an investment adviser or broker, allegedly recommended the money be put into a variety of products and stocks, including a large investment in a company operated by Boxwell, Green Forest Investment and Development Company, LLC.
The lottery winner agreed to invest $21,000 with Green Forest in May 2006 and paid Boxwell for his advice. Boxwell allegedly told her the investment would be guaranteed and would earn a return of 3% per month.
In October 2006, the investor attempted to contact Boxwell about the lack of investment returns and statements but was reportedly unable to find him. The order states that attempts by the investor to call Boxwell were met with notices that Boxwell's telephone was disconnected.
Two years later, the investor has not received any return or her principal. The order alleges that Boxwell opened a bank account with the lottery winner's investment, and in the three months following, wrote almost $14,000 in checks to "Cash" and $5,650 more in checks to himself.
The Enforcement Section of the Securities Division is seeking penalties and costs from Boxwell and his company, and will cooperate with other government investigations that may be initiated.
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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To find out more about Missouri's Secretary of State's office, visit www.sos.mo.gov
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