Regulators Nail Adviser for Violating Cease and Desist Order
The Texas Securities Department has nailed an unregistered adviser who sold unregistered securities after having a cease and desist order issued against him for the same thing back in 2005, according to Investment News.
William Erik Byrne admitted to selling almost $400,000 in investments and promissory notes between 2006 and 2009, notwithstanding an order in 2005 from the Texas State Securities Board ordering him to cease and desist from selling unregistered securities as an unregistered investment adviser. In 2005, he was peddling unregistered variable annuities from Hampton Insurance Company LTD. The new allegations for doing the same thing were related to the sale of unregistered promissory notes and again being an unregistered adviser.
He was hit with a $10,000 fine by the Texas Securities Department for engaging in the unauthorized business of insurance in 2008 and the investigation also revealed that Byrne failed to disclose to his new investors about his prior investment schemes which resulted in investors failing to receive their guaranteed payments.
According to the report, a formal plea has not been entered and a date has not been set for Byrne's arraignment.