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Secretary of state penalizes Springfield investment adviser

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Missouri Secretary of State Jay Ashcroft took action against a Springfield investment adviser for financial violations.

Ashcroft’s office yesterday announced his Securities Division entered a consent order with Douglas Bagwell and his firm Douglas Bagwell & Co. LLC, according to a news release.

Bagwell’s company was accused of failing to keep required books and records and having inaccurate financial information.

“Transparency on behalf of businesses is vital for the protection of investors,” Ashcroft said in the release. “We will continue to work to ensure Missouri businesses maintain up-to-date and accurate information investors can trust.”

An April 2012 secretary of state investigation turned up evidence that Bagwell’s business had not retained accurate and current financial advisory records. The business owner then acknowledged his firm did not correctly categorize capital contributions or accurately reflect depreciation on financial statements, according to Ashcroft’s office.

Further, Bagwell was unable to provide documents from the prior four years to the secretary of state’s office showing his firm was in compliance with generally accepted accounting principles. After recalculating its financial statements, Douglas Bagwell & Co. had a negative net worth for 2012, according to the release.

“Registered investment advisers are required to maintain GAAP-compliant financial statements for the protection of investors,” Securities Commissioner David Minnick said in the release. “Failing to maintain these statements, especially if actual levels are below minimum requirements, jeopardize the registration status of an investment adviser.”

Under the consent order, Bagwell agreed to pay $3,000 to the secretary of state’s investor education and protection fund, repay investigation costs and conform with GAAP guidelines, according to the release.

According to DouglasBagwell.com, the 2200 E. Sunshine St. firm founded in 2005 utilizes a fee-only investment model. Bagwell formerly worked for Waddell & Reed Inc., according to the website.

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