Source: US State of Missouri
For immediate release: August 21, 2019
Contact: Maura Browning, Communications Director
Unregistered Agent Allegedly Defrauds 22 Investors of $470,000, Claims Money is for Car Shopping App
Jefferson City, Mo. — Secretary of State Jay Ashcroft’s Securities Division ordered Adam Sharp and his companies to cease and desist after they allegedly sold unregistered, non-exempt securities to residents of Missouri, Arkansas, Texas and Louisiana.
The division alleges Sharp and his companies — Social Inc., Social Automotive Management Services LLC and Sharp Management LLC — made untrue statements, omitted material facts and engaged in fraud.
From approximately January 2016 to June 2018, Sharp allegedly solicited at least 22 investors to invest $470,000 in a contract for an automotive shopping app. Sharp did not use the investors funds as he had promised them, instead he withdrew or spent the funds on personal expenses.
“New business ventures offer exciting opportunities for investors, but you should understand the risks,” Securities Commissioner David M. Minnick said. “You may lose your entire investment. Even if you know the individual, you should still be vigilant. If you contact us before investing, we can tell you whether the individual or business is registered.”
The division ordered Sharp and his companies to show cause why they should not be ordered to pay restitution plus interest, civil penalties and investigation costs totaling more than $500,000.
Ashcroft urges all investors to know the risks. If you have any questions about an investment opportunity or wish to check the background and registration status of a financial adviser, please call the toll-free investor protection hotline at 800-721-7996, or go online to www.missouriprotectsinvestors.com to file a complaint.
Visit www.sos.mo.gov to learn more about the Office of the Missouri Secretary of State.