SPRINGFIELD, Mo. – A man previously convicted of securities fraud and deceptive business practices was ordered to cease and desist by the Secretary of State’s Securities Division after allegedly selling more than $1 million in unregistered stock to at least 25 investors.
According to a news release from the Office of the Missouri Secretary of State, Roy Harris Jr. used his companies – Orthogistic Labs Inc., Orthogistic LLC and Amniogistic LLC – to engage in fraud.
His companies were operated in two Texas cities and Springfield. Harris is from Rogersville, according to the news release.
Between June 2014 and May 2017, Harris “solicited at least 25 investors to invest more than $1 million in unregistered stock in his companies.” According to the news release, he didn’t tell investors that, in 2002, he was convicted of “securities fraud, deceptive business practices and felony stealing … more than $700,000 in judgments; or a federal tax lien of more than $845,000.”
According to the release, he used the funds to pay off previous investors, personal expenses and to settle lawsuits for a total of at least $622,000.
“Most investors will avoid dealing with convicted criminals, if they know about their backgrounds,” Securities Commissioner David M. Minnick said. “Not disclosing that kind of information before soliciting or receiving investment funds is fraud and our office will not tolerate it. If you have questions or concerns about the person you are investing with, contact our office.”
The Securities Division also ordered Harris and companies to, “show cause why they should not be ordered to pay restitution plus interest, civil penalties and investigation costs totaling more than $800,000.”