DERBY, Kan (WIBW)--- Kansas Securities Commissioner Josh Ney has issued a cease and desist order against a company operating under the name of Proud Veterans, LLC and company CEO, Nick Gnemi, of Derby.
The cease and desist order preliminarily finds that Proud Veterans and Gnemi committed securities fraud by selling an unregistered security, making untrue statements, and omitting material facts regarding the unregistered security.
Gnemi allegedly told a Kansas resident that they could invest money with Proud Veterans, which would be used as an investment toward stock and commodities of grain and milk that would be delivered to foreign countries.
Additionally, Gnemi is accused of claiming the investment would return 17.25% per year and carry no risk.
The order instructs Proud Veterans and Gnemi to cease and desist from offering or selling any unregistered securities in Kansas. The notice of intent provides notice that the Kansas Securities Commissioner intends to impose civil penalties of up to $25,000 for each violation of the Kansas Uniform Securities Act.
Proud Veterans and Gnemi have the opportunity to request a hearing within thirty days after service of the order.
If you have been approached by these individuals regarding investing in Proud Veterans, please contact the Office of the Kansas Securities Commissioner at 785-296-3307.