Securities News Releases
Thursday, June 29, 2006
Contact: Stacie Temple, (573) 526-5076
Contact: Mike Seitz, (573) 526-0949
Carnahan Halts Two Bad Actors in Investment Fraud Cases
Two Separate Cases Involve Southwest Missourians
Jefferson City, Missouri -- Secretary of State Robin Carnahan's Commissioner of Securities Matt Kitzi issued two final orders last week that brought cases involving Southwest Missouri companies and victims to a close.
In a final order, Larry and Gwendolyn King are prohibited from offering unregistered securities and violating Missouri's securities laws. The King family owns two Branson businesses, King's Country Music Show and the Lit'l Nashville Opry. The Kings and their companies are also required to pay penalties and investigation costs of $24,715.
The order states that the Kings made investment pitches to audience members at their shows and persuaded individuals to invest more than $160,000 in their country music shows between 2000 and 2005.
In an unrelated case, a final order was also issued against Porterfield Investments and Jim Porterfield for selling unregistered securities and making false statements concerning his various telecommunications businesses to investors. The order states that Porterfield also used an individual’s investment for personal gain, including rent and car payments, rather than for business purposes as he told the investor.
The final order requires Porterfield and his businesses to pay penalties and investigation costs of $9,020.
Both the Kings and the Porterfields failed to appear at their respective hearings.
"Taking advantage of investors the way these individuals did is wrong -- and it's illegal," Carnahan said. "Our Securities Division works hard to protect investors and ensure that bad actors like these don't have the opportunity to cause further harm to Missourians."
For more information regarding investments and fraud protection, visit the Secretary of State's web site at www.sos.mo.gov/securities or call the toll free investor hotline at 1-800-721-7996.
###