Secretary of State Ross Miller Warns of Dealing with Unregistered Brokers; Offers Web Resource for Potential Investors
(Las Vegas, NV; 6/20/08) -- A case of securities fraud in which victims were promised astronomical returns came to an end today when investigators from the Nevada Secretary of State’s office arrested a Las Vegas man at his home. Norman Matt Karp was arrested this morning and charged with two counts of securities fraud, two counts of theft, offering to sell an unregistered security, and transacting business as an unlicensed broker/dealer. According to Secretary of State Ross Miller, the case is an excellent example of why potential investors should check the status of securities brokers and dealers at www.nvsos.gov
“This is a case in which the person selling the fraudulent securities wasn’t even a registered broker,” said Miller. “Here again is an instance of economic conditions leading people to look for big returns. The size of the promised returns in this case stretches the definition of ‘too good to be true.’ It’s never that easy. Potential investors should know that they can go to our website, and find numerous resources for checking on the legitimacy of someone selling securities. We have access to the Financial Industry Regulatory Authority’s BrokerCheck, which is a good first step. And there are more resources at our site, because the more research you do, the less likely you are to become a victim.”
According to secretary of state investigators, Karp sold shares in a company called SOOoo Good International, Inc. One victim was told that his $50,000 investment would, in less than six months, be worth $32.5 million. A second victim was told that his $10,000 investment would reap similar returns, and in both cases Karp guaranteed the investment. Karp came to the attention of investigators when victims filed complaints.
The Secretary of State encourages anyone who believes they may be a victim of fraud
involving securities to contact office at (702) 486-2440, or (775) 688-1855. For more information on how to choose an investment professional, go directly to http://www.nvsos.gov/securities/investors/publications/knowyourbroker.asp , or follow the Securities Center “investor education” links at www.nvsos.gov .