Ozark man issued cease-and-desist order

The order was issued for allegedly misleading senior investors and using their money for personal expenses, according to a news release.

Gwin, who previously served federal prison time for fraud, was charged with offering unregistered, nonexempt securities to Missouri investors in order to put their savings into special accounts that he controlled.

Initially, that money was transferred into new accounts at Texas-based Sterling Trust Co. – a firm not named as a respondent in the cease-and-desist order – but it was quickly sent to accounts at First Nevada Marketing without most investors’ knowledge. Both First Nevada Marketing and its president, Leatson Landes, of Hot Springs, Ark., are named as respondents in the matter.

Though Gwin promised investors that their money would be put into a “safe investment” at Sterling and provide greater returns than their current investments, the investigation found that during a two-year period, more than $1.3 million was transferred between accounts controlled by Gwin.

Funds were used for credit-card debt owed by Gwin’s family, to provide money to his wife and to cover expenses at a Springfield country club. Only $12,000 remains of the investors’ funds.

According to the release, Gwin identified potential investors by targeting older investors. During seminars, he discussed tax, investment and insurance issues with attendees, but he failed to disclose important facts and risks about investments, or the fact that he had a felony fraud conviction.

“This case is a tough reminder about the importance of finding out all you can about the people you entrust with your money,” Carnahan said in the release, noting that she encourages all Missourians to call the Investor Protection Hotline, (800) 721-7996, before investing.

This story originally appeared in SBJ’s July 5 free e-news Daily Update. Register at sbj.net.