Securities Department, Crain Clash Over Post-Shoffner Subpoena

by Arkansas Business Staff  on Monday, May. 5, 2014 12:00 am  

“From our perspective, any member that’s registered with us is in a regulated industry, so when you’re registered, you agree to comply with the laws and to provide us with documents as provided by the Securities Act,” Freydl told Whispers.

“Whether Crain is hiding something or not, from our perspective, he was a member of the industry we regulate, and we can’t allow someone we regulated to tell us ‘no.’ Then it looks like we, as regulators, can’t do our job. We can’t allow that.”

Freydl said that Crain’s claims of the busy tax season and having to care for a dying mother didn’t excuse his refusal of the regulators’ requests.

“In my five years here, I’ve never seen anybody just flat refuse to provide stuff for us,” Freydl said.

Crain had 30 days as of April 10 to respond to the subpoena. He said he has hired a lawyer to do so.



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