Corporate & Securities Law

Agents Illegally Selling Promissory Notes

By Mark Maddox

Virginia Insurance Agents Violate Securities Laws

Two insurance agents in Virginia recently had a temporary injunction issued against them and their business entities after being accused by Virginia?s securities regulatory body of illegally selling promissory notes in violation of securities laws.

Accused of Material Misrepresentations and Material Omissions

Julius Everett Johnson and his companies: Benefit Contract Administrators, Inc., MHC Linen Service LLC, River City Cleaners, LLC, Roberts Awning Restoration and Renewal LLC

Walter Ray Reinhardt and his companies: First Fidelity Financial of Richmond LLC, Commonwealth Assurity LLC, and Capital Investor Group Inc.

Among the alleged misrepresentations and omissions are: failing to provide financial disclosures, failing to provide investment-risk disclosures, failing to provide a litigation or compliance disciplinary disclosure, failing to disclose that the securities being offered were not registered and falsely stating that they were exempt form registration, and making misrepresentations about his personal net worth pertaining to personal guarantees of the issue promissory notes.

If you were sold promissory notes by any of these companies, you may have a viable claim for recovery. Please contact us to tell us your story; we want to advise you on your options.

Full post as published by Representing Investors on February 24, 2010 (boomark / email).