FOR IMMEDIATE RELEASE
Feb 23 2015
Contact: Stephanie Fleming, (573) 526-0949
Kander Stops Western Missouri Scammer
Jefferson City, Mo. — Secretary of State Jason Kander issued a cease and desist order against Richard Chinnery of Lexington, Mo. The order alleges Chinnery convinced an investor that he had access to a "secret investment" opportunity that would double her money within a year.
The order alleges Chinnery operated a business called Custom Sales and Marketing, Inc., and was registered briefly as an investment adviser representative in 2009. A 68-year-old Missouri resident allegedly approached Chinnery about investing an inheritance she’d recently received. The individual allegedly knew and trusted Chinnery after having already purchased annuities from him prior to receiving the inheritance.
"Promises of high returns and little-to-no risk should be red flags for investors," Kander said. "I encourage Missourians to call my office before turning over their hard-earned savings to make sure investment opportunities and the people selling them are properly registered."
According to the order, the Missouri woman gave Chinnery $105,000 to invest after Chinnery told the investor that he and his wife had invested in and profited from a particular investment group. Chinnery allegedly told the investor the funds would be placed into a "secret investment," which would double within a year. When Chinnery failed to produce a return as promised, the investor contacted him and was told to "write off" the investment as a loss. Chinnery allegedly told the investor the funds were invested into a company that was being sued, and that he himself had experienced a loss due to the investment.
The investigation by Kander’s office revealed that after investing part of the client’s funds, Chinnery discovered he and the client had become victims of a Ponzi scheme. A review of the bank records of Chinnery and his company, Custom Sales and Marketing, Inc., revealed that only $50,400 of the funds were actually invested, and the rest of the investor’s funds were commingled with Chinnery’s business and personal funds, and used to pay in excess of $9,400 in cash and checks to Chinnery and his family, transactions in excess of $4,000 for Chinnery’s car payments, and payments to restaurants, Wal-Mart, Target, JC Penney and other stores. The order alleges Chinnery failed to discuss potential risks associated with the investment, and prohibits him from acting as unregistered agent in the state of Missouri.
The order seeks restitution, fines and the cost of the investigation.
Before making an investment decision, Missourians are encouraged to call Kander’s office at 1-800-721-7996 or visit www.MissouriSafeSavings.com.
Visit www.sos.mo.gov to learn more about the Office of the Missouri Secretary of State.