The Investment News reported that brokers from independent broker-dealers Financial Network Investment Corporation and Meyers Associates erroneously made “cold calls” to the Missouri Securities office. According to the report, a Financial Network Investment Corporation broker pitched Nuveen Multi-Strategy Income & Growth Fund 2 to a state investigator telling them “they could expect a 20% to 25% return during a six to eight month period.” To make matters worse the broker was not even registered to sell securities in Missouri.
Also, a broker from Meyers Associates called the same office and pitched shares of Nuance Communications Inc., discussing a rise in price due to a possible acquisition by Apple, Inc. and pressuring an immediate decision. Later, another broker called stating that Nuance was the “Bentley” of stocks and was “money in the bank”, according to the Missouri allegations. That broker was also not registered to sell securities in Missouri, according to the action. Cease and desist orders have been filed against both firms.