FOR IMMEDIATE RELEASE
Feb 2 2009
Contact: Laura Egerdal; Ryan Hobart, (573) 526-0949; (573) 526-4734
Carnahan Cracks Down on Chicken Little Fund Group and Owner for Securities Fraud
A final order issued against Coleman and his companies found that they offered unregistered securities and committed securities fraud. As a result, they have been ordered to pay over $38,000 in penalties and costs. In an initial action taken against the company in October 2007 it was alleged that Coleman used investors’ funds for personal expenses and to pay-off a $100,000 personal tax lien. Initially, Coleman requested a hearing to contest the claims, but, after more than a year, Coleman ultimately withdrew his request for a hearing.
“Mr. Coleman is paying the price for defrauding clients and taking advantage of their trust,” said Carnahan. “This case shows why it is so important to call my office and check on your financial adviser, no matter how high-profile they are, before you turn over your hard-earned money.”
Coleman recommended to clients that they purchase stock in companies he owned – including Chicken Little Fund Group – even though such securities were not suitable and carried too much risk for some of his clients. He also failed to register investments he was offering in another business, Daedalus Capital, LLC.
The securities commissioner has also referred the Coleman case to the Missouri Administrative Hearing Commission for a hearing on whether to suspend or revoke his securities license. The Administrative Hearing Commission will examine the case and make findings of fact that will be used to determine what action should be taken regarding Coleman’s securities license.
Officials in the Securities Division have also referred the matter to other government agencies and will cooperate in any subsequent investigations.
For more information regarding investments and fraud protection, visit the Secretary of State's online Missouri Investor Protection Center at www.MissouriSafeSavings.com or call the toll free Investor Protection Hotline at 1-800-721-7996.
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To find out more about Missouri’s Secretary of State’s office, visit www.sos.mo.gov