Straw Buyer Scheme Coupled With Subsequent Sale Using Contract For Deed Constitutes Sale Of Unregistered Security, Says Arkansas Securities Regulator

In Little Rock, Arkansas, Arkansas Business reports:

• A Missouri real estate investment company that was popped last year by regulators in its home state has drawn a cease-and-desist order from Arkansas Securities Commissioner Heath Abshure.

• The Arkansas Securities Department announced Wednesday that it had ordered Greenleaf Cos. LLC of Springfield, Mo., and two of its officers, Eric C. Gagnepain and Misty Perkins, to stop peddling an unregistered scheme in which investors' good credit is used to buy houses that were then turned over to Greenleaf.

• "Greenleaf would then manage the property and find a potential purchaser to lease the residential house until the purchaser/renter could purchase the residential house from the investor," according to a press release from ASD. "The investor was promised a $10,000.00 payment from Greenleaf for participating in the scheme."

• The securities offered by Greenleaf, Gagnepain and Perkins were not registered with the ASD, according to the order, and the sales literature distributed to potential investors fraudulently stated that Greenleaf and its process all but nullified the risk of loss for investors.

Source: Missouri-based Greenleaf Cos. Ordered to Stop Selling Investments in Arkansas.

See also: Firm said to steer investors to Quail Ridge.

For more from the Arkansas Securities Department, see:

• Press release: Arkansas Securities Commissioner Issues A Cease And Desist Order Stopping The Fraudulent Sale Of Unregistered Securities,
• Cease & Desist Order: In The Matter Of: Greenleaf Cos. LLC, Eric C. Gagnepain and Misty Perkins.

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