December 15, 2010
Jefferson City, Mo. - Attorney General Chris Koster has filed a felony securities fraud charge against David Benjamin Cooper of Fremont, California, whose corporation, GemSafe Plastics, Inc., maintained a business address in Warsaw, Missouri.
Koster said Cooper allegedly convinced a Warsaw woman to invest in GemSafe in October 2005, telling her he had applied for a patent on a coin case, that a coin company had expressed an interest in the product, and that he would sell the coin cases all over the world on the internet. He also said there was no risk of losing her investment, that she would receive a full return on her investment by the end of 2006, and that she would be able to retire off her dividends and returns. Cooper convinced the woman to invest additional money in July 2006. In October 2007, the investor requested that Cooper provide her with a financial statement and the pending patent number for GemSafe's coin case. He responded by saying there would be a corporate meeting in November 2007, but then postponed that meeting two times and ultimately held no meeting. Cooper also never provided the investor the information she requested.
Koster said an investigation by his office and the Secretary of State's Securities Division revealed that neither Cooper nor GemSafe had ever applied for a patent and that Cooper had made untrue statements in order to defraud the investor.
"This office is committed to working with the Secretary of State's office to protect Missouri investors from unscrupulous individuals and businesses who defraud investors," Koster said. "I encourage all investors to watch for red flags when making investment decisions-a solicitation that claims there is little or no risk is one of those red flags."
Koster said a warrant has been issued for Cooper's arrest and that bond has been set at $50,000. As in all criminal cases, the charge against the defendant is merely an accusation, and the defendant is presumed innocent until or unless proven guilty in a court of law.