State of Missouri
Office of Secretary of State

Case No. AP-09-09

IN THE MATTER OF:

GEMSAFE PLASTICS, INC.;
WORLD COIN NET, INC.; and
DAVID BENJAMIN COOPER,

 

Respondents.

Serve:    GemSafe Plastics, Inc. at:
             1835 East Main Street
             Warsaw, Missouri 65355

Serve:   World Coin Net, Inc., and
             David Benjamin Cooper at:
             411 Elm Street
             Lincoln, Missouri 65338

FINAL ORDER TO CEASE AND DESIST AND ORDER IMPOSING CIVIL PENALTIES AND AWARDING COSTS

On May 19, 2009, the Enforcement Section of the Securities Division of the Office of Secretary of State (the “Enforcement Section”), by and through Mary S. Hosmer, Assistant Commissioner, submitted a Petition for Final Order to Cease and Desist and Payment of Civil Penalties and Costs as to all Respondents (the “Petition”).  After reviewing the Petition, the Commissioner issues the following findings of facts, conclusion of law, and order:

PROCEDURAL BACKGROUND

  1. On February 4, 2009, the Enforcement Section submitted a Petition for Order to Cease and Desist and Order to Show Cause Why Civil Penalties and Costs Should not be Imposed in the above-styled matter.  

  2. On March 3, 2009, the Commissioner issued an Order to Cease and Desist and Order to Show Cause Why Civil Penalties and Costs Should not be Imposed (the “Order”) against Respondents.  On that same date, notice and a copy of such order were sent to all Respondents, by certified U.S. mail, pursuant to Section 409.6-604(b), RSMo. (Cum. Supp. 2008).

  3. The Order and notice thereof sent to all Respondents were “returned” to the Commissioner.

  4. On March 4, 2009, the Commissioner requested that Benton County Sheriff Rick Fajen personally serve the Order on the Respondents.  On March 6, 2009, The Commissioner received notice from Sheriff Fajen that the service was “NON EST” and that Respondents “went to the Atlanta, GA area.” 

  5. On March 25, 2009, all Respondents were served with this Order pursuant to Section 409.6-611(b), RSMo. (Cum. Supp. 2008), through service upon the Commissioner, and notice of such service and a copy of the Order were sent to Respondents by registered mail, at their last known addresses.

  6. The Respondents did not request a hearing within the time allowed by Section 409.6-604, RSMo. (Cum. Supp. 2008).  

  7. In the Petition, the Enforcement Section requested a Final Order to Cease and Desist as to all Respondents in this matter.

  8. In the Petition, the Enforcement Section requested that the Commissioner issue an order requiring the Respondents to pay, jointly and severally, costs of the investigation in this matter in the amount of two thousand five hundred dollars ($2,500). 

  9. In the Petition, the Enforcement Section requested that the Commissioner issue an order imposing a civil penalty of ten thousand dollars ($10,000) against each Respondent for multiple violations of Section 409.3-301, RSMo. (Cum. Supp. 2008). 

  10. In the Petition, the Enforcement Section requested that the Commissioner issue an order imposing a civil penalty of ten thousand dollars ($10,000) against each Respondent for multiple violations of Section 409.4-402(a), RSMo. (Cum. Supp. 2008).   

  11. In the Petition, the Enforcement Section requested that the Commissioner issue an order imposing a civil penalty of ten thousand dollars ($10,000) against each Respondent for multiple violations of Section 409.4-402(d), RSMo. (Cum. Supp. 2008);  

  12. In the Petition, the Enforcement Section requested that the Commissioner issue an order imposing a civil penalty of ten thousand dollars ($10,000) against each Respondent for multiple violations of Section 409.5-501, RSMo. (Cum. Supp. 2008); 

ORDER

NOW, THEREFORE, it is hereby ORDERED that:

  1. The Cease and Desist Order entered in Case Number AP-09-09 on March 3, 2009, is FINAL as to all Respondents. 

  2. Pursuant to Section 409.6-604(d), RSMo. (Cum. Supp. 2008), each of Respondent GenSafe Plastics, Inc., and David Cooper shall pay a separate civil penalty in the amount of two thousand five hundred dollars ($2,500) to the State of Missouri for multiple violations of Section 409.3-301, RSMo. (Cum. Supp. 2008).  This amount shall be made payable to the State of Missouri and paid within thirty (30) days of the date of this Order.  The Secretary of State shall forward these funds to the state treasury for the benefit of county and township school funds as provided in Article IX, Section 7 of the Constitution of Missouri.  Respondents GemSafe Plastics, Inc., and David Cooper shall deliver this payment to the Securities Division, 600 W. Main Street, PO Box 1276, Jefferson City, Missouri  65102.

  3. Pursuant to Section 409.6-604(d), RSMo. (Cum. Supp. 2008), Respondent David Cooper shall pay a civil penalty in the amount of two thousand dollars ($2,000) to the State of Missouri for multiple violations of Section 409.4-402(a), RSMo. (Cum. Supp. 2008).  This amount shall be made payable to the State of Missouri and paid within thirty (30) days of the date of this Order.  The Secretary of State shall forward these funds to the state treasury for the benefit of county and township school funds as provided in Article IX, Section 7 of the Constitution of Missouri.  Respondent David Cooper shall deliver this payment to the Securities Division, 600 W. Main Street, PO Box 1276, Jefferson City, Missouri  65102.

  4. Pursuant to Section 409.6-604(d), RSMo. (Cum. Supp. 2008), Respondent GemSafe Plastics, Inc., shall pay a civil penalty in the amount of one thousand dollars ($1,000) to the State of Missouri for violation of Section 409.4-402(d), RSMo. (Cum. Supp. 2008).  This amount shall be made payable to the State of Missouri and paid within thirty (30) days of the date of this Order.  The Secretary of State shall forward these funds to the state treasury for the benefit of county and township school funds as provided in Article IX, Section 7 of the Constitution of Missouri.  Respondent GemSafe Plastics, Inc., shall deliver this payment to the Securities Division, 600 W. Main Street, PO Box 1276, Jefferson City, Missouri  65102. 

  5. Pursuant to Section 409.6-604(d), RSMo. (Cum. Supp. 2008), each of Respondent GemSafe Plastics, Inc., and David Cooper shall pay a civil penalty in the amount of three thousand five hundred dollars ($3,500) to the State of Missouri for multiple violations of Section 409.5-501, RSMo. (Cum. Supp. 2008).  This amount shall be made payable to the State of Missouri and paid within thirty (30) days of the date of this Order.  The Secretary of State shall forward these funds to the state treasury for the benefit of county and township school funds as provided in Article IX, Section 7 of the Constitution of Missouri.  Respondents GemSafe Plastics, Inc., and David Cooper shall deliver this payment to the Securities Division, 600 W. Main Street, PO Box 1276, Jefferson City, Missouri  65102. 

  6. Pursuant to Section 409.6-604(e), RSMo., Respondents GemSafe Plastics, Inc., and David Cooper shall pay, within thirty (30) days from the date of this Order, the additional sum of two thousand five hundred dollars ($2,500) as reimbursement for the costs of the investigation and administration of this matter.  Respondents GemSafe Plastics, Inc., and David Cooper  shall be jointly and severally liable for this amount.  This amount shall be made payable to the Missouri Secretary of State’s Investor Education and Protection Fund.  Respondents GemSafe Plastics, Inc., and David Cooper shall deliver this payment to the Securities Division, 600 W. Main Street, PO Box 1276, Jefferson City, Missouri  65102.

  7. Pursuant to Section 409.6-604(f), RSMo. (Cum. Supp. 2008), this matter shall be referred to the Missouri Attorney General’s Office to collect the penalties and costs described in this Final Order, as necessary. 

  8. This Order is in the public interest and is consistent with the purposes intended by the Missouri Securities Act of 2003. 

  9. Respondents shall pay their own costs and attorneys’ fees, if any, with respect to this matter. 

SO ORDERED:

WITNESS MY HAND AND OFFICIAL SEAL OF MY OFFICE AT JEFFERSON CITY, MISSOURI THIS 12TH DAY OF JUNE, 2009.

ROBIN CARNAHAN
SECRETARY OF STATE

(Signed/Sealed)
MATTHEW D. KITZI
COMMISSIONER OF SECURITIES

 

 

 

 

 

 

 

 

 

 

 CERTIFICATE OF SERVICE

I hereby certify that on this 12th day of June, 2009, copies of the foregoing Order in the above-styled case was mailed by certified U.S. Mail, postage prepaid, to: 

GemSafe Plastics, Inc.
1835 East Main Street
Warsaw, Missouri 65355

World Coin Net, Inc.
411 Elm Street
Lincoln, Missouri 65338

David Benjamin Cooper
411 Elm Street
Lincoln, Missouri 65338

And hand delivered to:
            Mary S. Hosmer
            Assistant Commissioner
            Securities Division

John Hale, Specialist