HELENA, Mont. – A multi-level marketing scheme selling bogus investment opportunities in Montana has been shut down.
Commissioner of Securities and Insurance Monica J. Lindeen today issued a Cease and Desist Order against ShareValue, Inc. and Richard Reynolds of Bozeman.
The action alleges Reynolds, through his company ShareValue, offered and sold unregistered investment opportunities via a multi-level marketing scheme. The action also alleges Reynolds and ShareValue are not properly registered with the Commissioner of Securities to offer or sell investments.
The scam worked through an “open market direct sales company”, operated by Reynolds, claimed participants could earn up to $10,000 marketing ShareValue’s products. Lindeen’s action also alleges that Reynolds and ShareValue offered and sold direct investments in the company, guaranteeing investors a rate of return in the form of monthly interest payments with an agreement that if the returns weren’t paid as promised, the company would repurchase the investments.
Lindeen’s office was alerted to the scam by consumer complaints after Reynolds and ShareValue failed to pay the guaranteed rate of return and refused to repurchase the investments.
Lindeen said consumers should be wary of promises of high monthly returns with a guarantee to buy back an investment if the returns aren’t paid. “Anything that is just too good to be true should be considered a red flag to potential investors.”
Montanans who may have been solicited by or may have invested with Richard Reynolds or ShareValue are asked to contact the Office of the Commissioner of Securities and Insurance by calling toll-free at 1-800-332-6148 or in Helena at 444-2040.