Galvin targets unregistered B-D

Massachusetts Secretary of the Commonwealth William F. Galvin today charged Thomas John McKenna of Scituate and his company Sales Fusion Inc. of Norwell with operating as an unregistered broker-dealer, soliciting investors for companies he represented. The administrative complaint alleges that McKenna was paid a commission on sales from the issuers of the securities, and that commission could be as high as 40%. He sold interests in motion picture development projects; magnetic resonance imaging, or MRI, facilities; oil and gas exploration projects; and automotive tire recycling plants, a release from Mr. Galvin’s office alleged. “My office is determined to crack down on securities salesmen who operate without registering with the Securities Division,” Secretary Galvin said in a statement, “Especially when they are peddling high-risk stocks for large commissions.” From October, 2001, the complaint estimates, Mr. McKenna, either himself or through his company, made at least 104 sales transactions totaling $2,517,700. The commissions on those sales came to at least $375,185. The average commission was 16% of the investment, Mr. Galvin’s office said. Efforts to contact Mr. McKenna and Sales Fusion were not immediately successful.