Jefferson City, MO (STL.News) – Missouri Secretary of State Jay Ashcroft’s Securities Division ordered Richard Joos to cease and desist after he allegedly sold unregistered, non-exempt investment contracts and promissory notes to at least 14 investors, including residents of Kansas City and St. Louis.
From approximately January 2013 to February 2017, Joos sold $925,516.94 in unregistered, non-exempt securities in the form of life settlements — life insurance policies insuring the life of the owner of a policy. Joos represented that the securities would provide good or guaranteed returns but he failed to disclose that he was not registered to sell securities, that he had previously filed bankruptcy and that he would earn commissions from the sales.
Owners of the policies sold them to Conestoga International LLC, a company organized in Puerto Rico and Joos sold the policies or a percentage of them to investors and as an “appointed affiliate” of Conestoga.
“Securities, like life settlements, can be risky investments,” Securities Commissioner David M. Minnick said. “If the insured person lives longer than expected the investor may have to make premium payments or the policy will lapse and there will be no return on the investment. Life settlements and those who sell them must be registered with our office or must qualify for an exemption.”
The division ordered Joos to show cause why he should not be ordered to pay restitution plus interest, civil penalties and investigation costs totaling more than $900,000.