BREAKING NEWS - Missouri considers revoking Coleman’s securities license
St. Louis Business Journal
by Kelsey Volkmann
St. Louis investment adviser Stephen Coleman is slated to appear for a hearing before the Missouri Administrative Hearing Commission on Thursday to determine whether his securities license should be revoked.
Coleman, who operates Daedalus Capital and the now-defunct Chicken Little Fund Group, has been under investigation by Missouri Commissioner of Securities Matthew Kitzi for alleged securities fraud after investors complained Coleman misled them. That investigation found that Coleman offered unregistered securities and committed securities fraud. As a result, Coleman and his companies were ordered to pay more than $38,000 in penalties and costs to the state.
Thursday s hearing is when evidence will be presented, a commission spokeswoman said. A decision on whether the license will be revoked will come later.
The U.S. Justice Department and the U.S. Postal Inspection Service are also investigating Coleman for alleged fraud.
Kitzi said the state securities regulators investigated the ‽activities and issues” of 45 investors involved with Coleman, involving hundreds of thousands of dollars.
In its case against Coleman, the state alleged that he and his Daedalus Capital and Chicken Little Fund Group used investors money for Coleman s salary, a $30,000 financial plan for him and his wife, and to pay off a $100,000 personal tax lien, leaving little money to pay the expenses of the Chicken Little mutual fund.
The state also alleged that Stephen Coleman sold investments in Chicken Little Fund Group to clients of his investment advisory firm, Daedalus Capital, without revealing the potential conflicts of interest. The Chicken Little Growth Fund, the first fund created out of the Chicken Little Fund Group, started in 2005 and grew to more than $1.2 million in assets before it closed in 2007 after Stephen Coleman was late in paying operating expenses.
http://stlouis.bizjournals.com/stlouis/stories/2009/04/13/daily68.html
by Kelsey Volkmann
St. Louis investment adviser Stephen Coleman is slated to appear for a hearing before the Missouri Administrative Hearing Commission on Thursday to determine whether his securities license should be revoked.
Coleman, who operates Daedalus Capital and the now-defunct Chicken Little Fund Group, has been under investigation by Missouri Commissioner of Securities Matthew Kitzi for alleged securities fraud after investors complained Coleman misled them. That investigation found that Coleman offered unregistered securities and committed securities fraud. As a result, Coleman and his companies were ordered to pay more than $38,000 in penalties and costs to the state.
Thursday s hearing is when evidence will be presented, a commission spokeswoman said. A decision on whether the license will be revoked will come later.
The U.S. Justice Department and the U.S. Postal Inspection Service are also investigating Coleman for alleged fraud.
Kitzi said the state securities regulators investigated the ‽activities and issues” of 45 investors involved with Coleman, involving hundreds of thousands of dollars.
In its case against Coleman, the state alleged that he and his Daedalus Capital and Chicken Little Fund Group used investors money for Coleman s salary, a $30,000 financial plan for him and his wife, and to pay off a $100,000 personal tax lien, leaving little money to pay the expenses of the Chicken Little mutual fund.
The state also alleged that Stephen Coleman sold investments in Chicken Little Fund Group to clients of his investment advisory firm, Daedalus Capital, without revealing the potential conflicts of interest. The Chicken Little Growth Fund, the first fund created out of the Chicken Little Fund Group, started in 2005 and grew to more than $1.2 million in assets before it closed in 2007 after Stephen Coleman was late in paying operating expenses.
http://stlouis.bizjournals.com/stlouis/stories/2009/04/13/daily68.html
