FOR IMMEDIATE RELEASE
Wednesday, July 15, 2009
Contact: Laura Egerdal, (573) 526-0949
Contact: Ryan Hobart, (573) 526-4734

Carnahan Closes Case on Fraud Against Lottery Winner

Jefferson City, MO – Officials in the Securities Division of Secretary of State Robin Carnahan’s office assessed penalties against a Kansas City man who committed securities fraud against a lottery winner. Carnahan’s office also referred the case to various law enforcement agencies.

A final order issued against Glenn Boxwell and a company he operates, Green Forest Investment and Development Company, LLC, found that they offered unregistered securities and committed securities fraud. As a result, Boxwell and the company were each fined $3,500 and ordered to pay nearly $2,000 for the costs of the Securities Division’s investigation. Neither Boxwell nor Green Forest ever requested a hearing on this matter or took any steps to defend their actions.

“Anyone who comes into a financial windfall should be very careful when choosing someone to watch over their money,” said Carnahan. “Missourians should check out any financial advisor or new investment opportunity by calling the Investment Protection Hotline. My office will continue to crack-down on those who seek to exploit Missouri investors.”

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, recommended the money be put into a variety of products and stocks, including a large investment in Green Forest.

The lottery winner agreed to invest $21,000 with Green Forest in May 2006 and paid Boxwell for his advice. Boxwell 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. 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 finds 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.

Officials in the Securities Division formally referred this matter and offered its assistance to state and local law enforcement agencies.

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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