April 1, 2010
Jefferson City, Mo. - Attorney General Chris Koster today filed suit against Daedalus Capital, L.L.C. and Stephen M. Coleman for violations of the Missouri Securities Act. The Attorney General's action was brought on behalf of Secretary of State Robin Carnahan's office.
Koster said the Secretary of State's Securities Division last year issued a final cease and desist order prohibiting Stephen M. Coleman, president of the St. Louis-based firm, and Daedalus Capital from selling unregistered, non-exempt securities. He said federal and state law require any securities being offered for sale to be registered or exempt from registration under either state or federal law.
Koster said Coleman ignored the cease and desist order and last year began offering an unregistered, non-exempt security called "the Deuce" on his two websites, claiming an investor could redeem the security in five years for twice its purchase price.
"This office is committed to working with the Secretary of State's office to protect Missouri investors from unscrupulous firms who offer illegal securities to unsuspecting investors," Koster said. "We are asking the court to stop Coleman from harming other investors and to pay restitution to any investor he has wronged."
Missouri Secretary of State Robin Carnahan said her office will go after firms that are out to fleece Missourians.
"There is no excuse for fraud and deception in offering investments, and I have no tolerance for those who repeatedly take advantage of Missouri investors," Carnahan said. "I will fight to shut down anyone who cheats hard-working Missourians out of their savings."
Koster said his office is asking the court to issue a temporary restraining order to prohibit Coleman and Daedalus from selling unregistered, non-exempt securities; to issue preliminary and permanent injunctions prohibiting Coleman from continuing to engage in unlawful, unfair, and deceptive acts while selling securities; to impose civil penalties; to require that he pay restitution to victims; and to pay the costs of investigation and prosecution.