FOR IMMEDIATE RELEASE
Thursday, March 05, 2009
Contact: Laura Egerdal, (573) 526-0949
Contact: Ryan Hobart, (573) 526-4734
Carnahan Shuts Down Coin Case Manufacturing Scheme that Cost Missourians Thousands
Jefferson City, MO – Officials in the Securities Division of Secretary of State Robin Carnahan’s Office issued a Cease and Desist Order against a Lincoln, Missouri man for offering unregistered investments in companies he promised would bring jobs to his community and make shareholders wealthy. Investors in the Warsaw area lost over $20,000 as a result of the scheme.
“Anyone considering a new investment should call the Investor Protection Hotline, even if it is being offered by someone you know,” said Carnahan. “Remember, if it sounds too good to be true, it probably is. Missouri investors can count on my office to continue cracking down on investment fraud in communities across the state.”
In January 2006, David Cooper told investors he planned to start a manufacturing company in Warsaw that would build “acrylic capsules” to store rare coins. He allegedly assured investors that the product would be sold all over the world and that there was “no risk” to their investment. Investors reported that Cooper promised they “would be rich, could stop working, could start traveling,” and would not have to worry about their retirement.
The order, which can be viewed online, reveals Cooper continued to solicit investments through August 2007, for laser equipment, marketing staff and assembly workers. By January of 2008, however, Cooper told investors that the company “is on financial life support” and “is completely out of money.” None of the investors identified in the order have received a return on their investments.
To sell securities or offer investment advice, an individual must be properly registered with the State of Missouri. Records maintained by the Securities Division indicate that neither Cooper nor his two companies, GemSafe Plastics, located in Warsaw, Mo., and World Coin Net, located in Lincoln, Mo., were registered to offer or sell investments in Missouri. The order also charges Cooper with failing to provide information to investors. The Cease and Desist Order could result in the assessment of penalties and costs against Cooper and his companies.
For more information regarding investments and fraud protection, visit the Secretary of State's 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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