Arkansas Orders Broken Arrow Man To Stop Selling Investments
Tuesday, February 6th 2007, 9:49 am
By: News On 6
LITTLE ROCK (AP) _ Arkansas' securities regulators are ordering an Oklahoma man, an Arkansas man and a Nevada company to stop selling investments they claim could help pay off mortgages in 13 months.
One of the targets of the order is the Liberty Group LLC which the regulators say is registered in Nevada but operated out of Broken Arrow and Carmel, Indiana.
Also named in the order are Anthony Kennedy of Broken Arrow, and Larry Warren of Wynne, Arkansas. All were issued a cease-and-desist order against the sale of so-called ``high-yield investment contracts.''
Regulators say investors were encouraged to refinance their homes then liquidate their equity and invest it in The Liberty Group.
The plan called for the mortgages to be paid for 12 months _ then paid off completely. At the end of the 13th month investors were promised up to a five-fold return on their initial investment _ minus the cost of their mortgage.
The regulators say there was no 13th-month return paid.