Investment Advisor Suspended, Ordered to Cease and Desist

By: From 13 News, Securities Commission News Report
By: From 13 News, Securities Commission News Report


TOPEKA (WIBW) -- Kansas Securities Commissioner Josh Ney Issues an Emergency Order of Suspension and a Cease and Desist Order against Gartner Financial Group, LLC and Scott Alan Gartner.

Topeka, KS--- Kansas Securities Commissioner Josh Ney has issued an Emergency Order of Suspension and a Cease and Desist Order against Gartner Financial Group, LLC and its principal, Scott Alan Gartner. The investment advisor formerly operated out of Overland Park and is now located in Topeka, KS.

The Emergency Order of Suspension alleges that Gartner and his company willfully failed to comply with multiple requests for information by the Kansas Securities Commissioner in connection with an ongoing investigation and audit. The order states that Gartner impeded an audit or inspection by supplying false information to the Office of the Kansas Securities Commissioner.

Gartner informed staff for the Securities Commissioner that he invested $10,000 of his own money in a 1913 gold-backed Chinese bond but did not invest anyone else’s money in the bond. However, the Securities Commissioner’s staff later discovered that Gartner acquired $10,000 from a Jefferson County, Kansas citizen and used the funds to purchase interests in the bond. Additionally, the Emergency Order of Suspension provides notice that the Kansas Securities Commissioner intends to revoke the registration of Gartner and his company as well as impose fines of no more than $25,000.

The Cease and Desist Order alleges that Gartner and Gartner Financial Group, LLC committed securities fraud by making untrue statements and omitting material facts regarding the 1913 Chinese bond that Gartner purchased on behalf of the Jefferson County, Kansas citizen, as outlined in the Emergency Order of Suspension. According to the Cease and Desist Order, Gartner told the Kansas citizen that he had an investment that would double his money in 90 days.

However, Gartner failed to disclose that the investment was a 1913 gold-backed Chinese bond that had little to no chance of doubling in value in 90 days. Gartner also failed to disclose any of the risks associated with investing in the bond. The order instructs Gartner and Gartner Financial Group, LLC to cease and desist from selling interests in the 1913 gold-backed Chinese bonds. If they wish to challenge the allegations contained in the Emergency Order of Suspension and Cease and Desist Order, Gartner and Gartner Financial have the opportunity to request a hearing within thirty days after service of the Orders.

The Kansas Securities Commissioner urges any individuals that have been approached by someone selling investment opportunities that sound questionable to contact the Office of the Kansas Securities Commissioner at 785-296-3307 or go to www.ksc.ks.gov.


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