FOR IMMEDIATE RELEASE
Oct 28 2005
Contact: Mike Seitz; David Cosgrove, (573) 526-0949; (573) 751-4136
Carnahan Issues Cease And Desist Order Against Corefunds, Inc.
CoreFunds, Inc. is a company that offered high-speed, dial-up Internet services through Corefunds Online, an Internet Service Provider.
The order alleges that CoreFunds, Rapp, and Skola raised approximately $240,000, from at least 17 investors, through investments in the form of Royalty Agreements in CoreFunds, Inc.
Rapp, Skola, and others working for the company received approximately 78% of the funds raised from the offering as consulting fees, loans, and/or bonuses. Many of these consulting fees were allegedly paid from the bank account within days after an investor's funds were deposited into the account.
In December 2004, Rapp withdrew $50,000 of invested funds in a "60-day loan" and allegedly only repaid $10,000.
"It's the law that anyone selling securities and the securities themselves must be registered with the Missouri Securities Division," said Carnahan. "We encourage Missourians to call our toll-free investor hotline and ask questions about the individuals selling securities before they turn over their savings."
The order alleges that the company violated Missouri law by soliciting and selling an investment contract without proper registration or exemption.
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 http://www.sos.mo.gov/securities/ or call the toll free investor hotline at 1-800-721-7996.