Jefferson City, MOA complicated securities fraud case involving real estate and home sales has landed five real estate and securities professionals in hot water. Real estate transactions and the sale and transfer of securities can be complex and challenging at the best of times as a separate entity. In this case, the actions of the five are alleged to be illegal.
A grand jury in Greene County returned five felony indictments stemming from an investigation by the office of the Attorney General for the state of Missouri, the Springfield News-Leader reports.
According to the investigation, Greenleaf Companies undertook the solicitation of investors with regard to the purchase of homes, together with the vending of securities related to the purchase of those homes. The dwellings would then be sold to consumers by Greenleaf and The Real Estate Company.
However, according to the Springfield News-Leader on February 10, investors were allegedly not apprised of key facts related to the investments by Greenleaf. Subsequently, when the homes were sold to consumers, it is alleged that purchasers were not told of critical information with regard to the ownership and financing structure of the homes they were buying.
The Office of the Attorney General for the State of Missouri undertook the investigation. Chris Koster is the Attorney General for Missouri.
Indictments were returned to Springfield's Eric Christian Gagnepain, former part-owner of Greenleaf and Scott Allen Dasal, also of Springfield and the former president of The Real Estate Company, who were each charged with 10 counts of securities fraud and nine counts of unlawful merchandising practices.
Additionally, Misty May Perkins of Highlandville, former Director of Investor Relations for Greenleaf, was charged with 10 counts of securities fraud.
William David Strong of Springfield, former vice president of Finance and Daily Operations for Greenleaf, faces charges of one count of securities fraud and five counts of unlawful merchandising practices.
Finally, Robert Lee Batchman of Ozark, former real estate broker for The Real Estate Company, was charged with four counts of unlawful merchandising practices.
Securities fraud litigation by the State will ultimately verify the innocence or determine the guilt of the affected parties.
Stocks and securities are often a preferred option for investors who want to maximize their returns over what they may earn through guaranteed investments, which protect capital but afford less performance. Many vendors of securities and related products will attempt to be creative in an effort to get a leg up on the competition. In some cases, they allegedly run afoul of the law and face stock investment fraud.
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