Missouri Attorney General Jay Nixon has filed a lawsuit to shut down a St. Louis company that sold at least $3.8 million in unregistered securities to investors on the promise of exorbitant rates of return.
Investors in Global Power Global Wealth (GPGW) Enterprises not only didn't realize those returns, Nixon says; in most cases, the investors lost their principal investments as well.
The lawsuit cites GPGW and its subsidiaries, Global Wealth Investments, Opportunity Lives and Global Wealth Builders, for numerous violations of the Missouri Securities Act of 2003 and the Missouri Merchandising Practices Act. Also named as defendants in the lawsuit are GPGW president, Andre E. Mitchell of O'Fallon, Ill., and vice president Henry L. Allen of St. Louis.
The lawsuit claims Mitchell and the other defendants sold investments to at least 461 persons nationwide, including at least 66 residents from Missouri, at a total value of at least $3,867,000. Documents provided to investors by the defendants promised rates of return of up to 500 percent to 800 percent within four to 24 months.
Investors also were falsely promised that their principal investment would always be secure, the lawsuit says. The defendants ignored two previous cease and desist orders issued by the Missouri Commissioner of Securities, Nixon and Missouri Secretary of State Robin Carnahan say.
"The defendants offered staggering rates of return on investments and brazenly continued to sell unregistered securities even after they were ordered twice to cease and desist," said Nixon. "We are working with Secretary of State Carnahan and have filed this lawsuit to ensure that the defendants are prohibited from operating in Missouri and that investors who fell prey to this scam are made whole."
"Along with the Missouri Securities Division of my office, I am committed to protecting Missouri investors," said Carnahan. "Unfortunately, this individual continued to defraud investors even after he was ordered by the Missouri Securities Commissioner to stop selling the unregistered investments."
The lawsuit asks the court to grant a permanent injunction against the defendants to prevent them from continuing to engage in unlawful, unfair and deceptive acts while selling securities. It also asks the court to:
• Freeze all accounts and sequester all funds held by the defendants;
• Authorize the Commissioner of Securities to take control of the defendants' property, including investment accounts, rent and profits; to collect debts and to acquire and dispose of property;
• Order the defendants to provide full restitution to all consumers from whom the defendants defrauded;
• Impose appropriate civil penalties on the defendants;
• Order the defendants to pay to the investor education and protection fund an amount of money equal to ten percent of the total restitution paid to consumers; and
• Order the defendants to pay all court, investigative and prosecution costs in the case.
