Securities News Releases
Thursday, September 28, 2006
Contact: Stacie Temple, (573) 526-5076
Contact: Carrie Bebermeyer, (573)526-0949
Carnahan Orders Cape Girardeau Man to Stop Suspected Fraudulent Activities
Jefferson City, Missouri -- Secretary of State Robin Carnahan's Commissioner of Securities, Matt Kitzi, issued a Cease and Desist Order on Tuesday against Calvin Bird of Cape Girardeau, Missouri, and several related companies
The order states that Calvin Bird convinced a Missouri resident to invest $260,000 in a fraudulent real estate investment. The investor's money came from a personal injury settlement related to a work accident that left him with burns over 80% of his body.
According to the order, Bird told the Missouri resident that his investment would be doubled and returned to him within 30-45 days. He allegedly claimed that the funds would be invested in a New Jersey real estate project.
Rather than investing the funds in a real estate venture, Bird and his associates allegedly used the Missouri resident's funds for personal gain to purchase a car, a car stereo and to pay other personal expenses. Bank records also indicate that a large portion of the money was spent on production of a movie. To date, the Missouri resident has not had any money returned.
"Promises to double your money in a short timeframe should always be a red flag to an investor," said Carnahan. "In addition, investors who have come into a large sum of money, such as this unfortunate victim, should be particularly wary of unsolicited investment advice and investments that sound too good to be true."
The order states that neither Bird nor the investment products he offered were registered with the Missouri Securities Division or exempt. In addition, Bird and his companies committed multiple violations of making untrue statements in connection with those sales.
For more information regarding investments and fraud protection, or for information regarding a company or representative, 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.