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Securities News Releases
Thursday, October 26, 2006
Contact: Stacie Temple, (573) 526-5076
Contact: Carroe Bebermeyer, (573) 526-0949
Biodiesel Company’s Improper Acts Fuel Investigation and Consent Order
Jefferson city, Missouri -– Secretary of State Robin Carnahan’s Commissioner of Securities Matt Kitzi and Great River Soy Processing Cooperative, located in Sikeston, Missouri, entered into a Consent Order on Wednesday, October 25, regarding the company’s sale of securities while unregistered and without exemption from the Missouri Securities Division.
Initially, the company was granted a special agricultural cooperative exemption from securities registration in September of 2003. By law, the exemption is effective for only one year. An investigation revealed that after the exemption expired, the company continued to offer and sell membership interests in violation of Missouri law to over one hundred Missouri residents whose investments ranged from $1,000 to $30,000.
According to the company’s website, Great River Soy Processing Cooperative was raising capital for the construction of a biodiesel facility to compliment a “Value-Added Soybean Meal & Soy Oil Processing Coop.”
“In some instances the rush to raise capital and build on an idea leads to mistakes and oversights,” said Carnahan. “These registration exemptions work to protect the investing public when companies use them properly and know the limits of the law.”
The consent order requires Great River to offer investors recruited after the exemption expired an opportunity to sell their interests back to the company. In addition, Great River must pay a $6,000 penalty, reimburse investigative costs and pay $7,000 to the Missouri Investor Education and Protection Fund.
In a separate order, Great River was granted a new exemption on Wednesday, allowing the company to resume the sale of 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.