Source: US State of Missouri
For immediate release: November 17, 2020
Contact: Nick Omland, Communications Specialist
Companies Consent to Illegally Offering $830,000 in Unregistered Life Settlements to 14 Missourians
Jefferson City, Mo. — Secretary of State Jay Ashcroft’s Securities Division issued a consent order against Conestoga Trust and Conestoga International LLC after they sold more than $830,000 in unregistered securities to 14 Missouri residents.
Between Dec. 6, 2010, and March 16, 2016, three unregistered agents for the companies sold more than $830,000 in unregistered life settlement investments, which are securities under Missouri law, to 14 Missouri investors. In compensation for the sales, the companies paid commissions of at least $58,000 to their unregistered agents.
The investors are Missouri residents from Lake St. Louis, Independence, Blue Springs, St. Louis, Kansas City, Chillicothe, Camdenton, Sibley, Grain Valley, Lee’s Summit and Gladstone.
“Investments like these can be very risky,” Ashcroft said. “Essentially, the investor is gambling on the death and/or life expectancy of the policy holder. Get a clear understanding of what you’re investing in, and ensure the company you’re investing with is registered before you write the check. Always contact us first if you have any doubts.”
The two companies have agreed to pay restitution to investors who had forfeited policy interests. For other investors who have active policy interests, the companies have agreed to subsidize future premium payments. The division ordered the companies to pay $115,000 into the Investor Education and Protection Fund, with $100,000 of that amount waived as long as they complete their obligations to the investors.
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.