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Securities News Releases
Wednesday, October 04, 2006
Contact: Stacie Temple, (573) 526-5076
Contact: Carrie Bebermeyer, (573) 526-0949
Carnahan Pulls the Plug on Jukebox Scam
Jefferson City, Missouri - Secretary of State Robin Carnahan's Commissioner of Securities, Matt Kitzi, recently issued a Cease and Desist Order against Edward Conner of Lake Saint Louis, Mo., and David J. Reisner of Independence, Mo., to stop the pair's alleged bait-and-switch securities offerings.
According to the order, Conner, acting as an agent for Performance Financial Services, Inc. and its director, Reisner, misled an elderly Missourian to believe she was investing in "internet companies" that worked similar to a mutual fund. Instead, Conner and his associates invested more than $100,000 of the woman's IRA money in 11 jukeboxes.
The order states that the Missouri woman was looking for someone to help manage her retirement funds, and had no idea that she was actually investing in a jukebox lease program until she received a year-end statement declaring the units she owned were "worthless assets."
"This is another example of how investment fraud is a very real threat to seniors," said Carnahan. "I encourage all Missourians, and especially seniors, to thoroughly check out investment agents and products before they turn over their retirement savings. A call to our toll-free investor hotline could make a real difference in their futures."
The Missouri investor's money was allegedly placed in a jukebox lease management program offered by Network Services, Inc. a/k/a Network Services Depot, Inc. a/k/a Network Services Distribution, Inc. and 360 Wireless, Inc.
This is not Conner's first encounter with the Missouri Securities Division. In 2003, he was ordered to stop selling coin-operated payphone management contracts, while Network Services and 360 Wireless were ordered to stop selling unregistered securities involving Internet kiosks.
Alleged violations against the various Respondents include the offer and sale of nonexempt, unregistered securities, making untrue statements in connection with the sale of securities and omitting material facts in offering securities.
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.