FOR IMMEDIATE RELEASE
Dec 16 2010
Contact: Laura Egerdal; Abe Rakov, (573) 526-0949; (573) 526-4734
Carnahan Shuts Down Bowling Green Man’s $200,000 Scheme
According to the Cease and Desist order, Fredrick Tepen told his investors that Pike Financial was a start-up business focused on developing a commodities trading system. Some investors were allegedly promised a return up of to 10 percent on their investment. Instead, Tepen allegedly used the investors’ money for personal expenses, including paying off personal credit cards. The order states that one investor "trusted Mr. Tepen because they had grown up together in the same small town," and that another trusted Tepen "because they had been friends for a long time."
"Unfortunately this isn’t the first time that my office has investigated someone for taking advantage of friends or longtime acquaintances," Carnahan said. "One person in this case has known the man he invested with for almost 50 years. Every time you consider a new investment offer, even if it’s made by someone you trust, please contact our Investor Protection Hotline. With one call, you can learn if an investment is properly registered before handing over your life savings."
The investors, who the order identified as long-time friends and associates of Tepen from Bowling Green and Jefferson City, received little or no return on their investment.
The order alleges that Tepen sold unregistered securities and violated Missouri law by failing to disclose important information about the investment and by providing false information to investors, such how their funds would be spent. Tepen and Pike Financial have 30 days to request a hearing and contest this matter.
For more information regarding investments and fraud protection, or for information regarding a company or representative, call the toll free Investor Protection Hotline at 1-800-721-7996 or visit the Secretary of State’s online Investor Protection Center at www.MissouriSafeSavings.com.