Monday, Mar. 11 2013 3:24PM
Lee’s Summit man ordered to cease and desist selling investments
By Toriano Porter
A Lee’s Summit man has drawn the attention of Missouri’s secretary of state for allegedly selling unregistered investments to unsuspecting elderly clients.
Missouri Secretary of State Jason Kander today announced that his office has issued a cease and desist order against Daryl Mitchell of Lee’s Summit and his company, Multicast Entertainment TV Corporation.
Kander’s Securities Division alleges that Mitchell told investors he had developed a computer chip that would “prevent overload on the internet” and help protect the internet from hacking. Mitchell told at least one investor that the Google fiber network was dependent on his technology, but Mitchell had no affiliation with Google. Mitchell also told at least one investor that he had “affiliations with Warren Buffet and Donald Trump.”
Calls to Mitchell earlier today seeking comment were unreturned.
“It’s unacceptable to take advantage of the trusting nature of Missouri seniors by stealing their hard earned money,” Kander said in a statement. “Seniors contacted to invest their ‘nest egg’ should call my office to check the registration status of the individual offering securities and the investment.”
According to the petition filed by Kander’s Securities Division, Mitchell admitted to investigators with the Secretary of State’s office that he sold unregistered investments in his company, Multicast Entertainment TV. At least 40 of the 53 investors were Missouri residents, and many of these investors were elderly. The petition alleges that one elderly investor told investigators that the investment in METV was her “last nest egg.”
Additionally, the petition alleges Mitchell commingled investor funds with personal funds. Mitchell promised investors that they could get their invested funds back at any time and told at least one investor that the stock, available for one dollar per share, would greatly increase to hundreds of dollars a share.
The petition alleges that no investor received a return on the investment and that Mitchell has put off repayment on several instances by stating that Mitchell had a death in his family, that Mitchell had been bitten by a spider, and that Mitchell’s wife was trying to take investor funds from Mitchell’s account in a divorce proceeding.
The petition seeks penalties, costs, restitution, and disgorgement.
Mitchell has 30 days to request a hearing to contest the matter.