Oct. 23–Missouri securities regulators have ordered the closing of what they call a “fraudulent scheme” run by a Wildwood insurance agent who collected at least $200,000 from investors.
Secretary of State Jason Kander’s office issued a “cease and desist” order against insurance agent Joanna L. Rich and her company, FSG Fundraising of Chesterfield.
Kander said several investors from Missouri and Kansas, some of them elderly, were promised 10 percent annual returns in what was supposed to be a low risk investment.
Instead, his office charged that $173,000 was spent on “personal” expenses at a nail parlor, dentist, grocery stores, airlines, stores, the Ameristar Casino Resort, the Chicago White Sox, ATM withdrawals and checks to Rich.
Rich had sole control of the company bank acount, Kander’s office said.
Rich could not be reached for comment. According to the order, Rich told investigators that the investors were “contributors” to FSG Fundraising. She felt the investments were safe because she could pay them back from her personal assets if the company failed.
The company was formed to sell fundraising packages to non-profit organizations and schools, but signed no clients. She said she paid herself a salary for her work for FSG.
Jim Gallagher — 314-340-8390
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