Two investment shops promising 1000% returns ordered to stop sales

Nebraska officials say two related Omaha companies have been improperly selling unregistered investments promising as much as a 1,000 percent annual return.
NOV 18, 2009
Nebraska officials say two related Omaha companies have been improperly selling unregistered investments promising as much as a 1,000 percent annual return. The Nebraska Department of Banking and Finance said Tuesday it ordered Citywide Financial Service Corp. and K&R Development LLC to quit selling investments. Both companies, which shared employees and a west Omaha address, sold investments to at least four investors, but officials could not say Tuesday how much money had been invested. Efforts to reach the companies were unsuccessful because Citywide changed its number to an unlisted one and no one answered the number listed for K&R. Officials say the firms failed to disclose the risks and failed to register the investments with the state.

Latest News

WallStreetBets takes on the SEC — and makes a surprisingly sharp case
WallStreetBets takes on the SEC — and makes a surprisingly sharp case

The Reddit trading community's formal comment letter against the proposal is drawing widespread attention across finance and tech circles.

Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale
Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale

RIA aggregator adds $4.8 billion in client assets across seven states as demand grows for alternatives to traditional succession models.

Beyond wealth management: Why the future of advice is becoming more human
Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up
Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up

Shareholder targets FS KKR Capital's directors over alleged portfolio valuation and dividend missteps.

UBS loses $1.2 million arbitration claim linked to variable annuities and margin
UBS loses $1.2 million arbitration claim linked to variable annuities and margin

UBS has a history of costly litigation stemming from the sale of volatile investment products.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline