Posted 2/26/2013 12:37 pm
Updated 2 years ago
The Arkansas Securities Department ordered Hot Springs real estate developer Rodney Myers on Monday to stop selling securities after he allegedly misused $50,000 he received from an investor.
The cease-and-desist order is against Myers and his firm, R. D. Myers Development Inc., and prevents them from selling unregistered securities and to "refrain from committing fraud or deceit" in connection with the selling any securities in the state, according to an ASD news release.
"I have never been in the business of selling securities, so I don't see how this applies to me," Myers told Arkansas Business Tuesday. "But I will comply with the order."
The allegations are tied to an under-construction residential housing project in Hot Springs.
In 2010, Myers encouraged an Arkansas investor, who was unnamed in the order, to enter into a partnership agreement with Myers Development. Myers needed more money to finish construction on several houses, according to an ASD news release.
The investor invested $50,000 with Myers Development, and, in exchange, Myers Development would pay the investor $6,000 for each lot sold until a total of $100,00 was paid on the initial investment, the news release said.
Myers Development also agreed to pay a 6.5 percent return on the investment until the $100,000 return was paid in full, the news release said.
But Myers failed to mention the material fact that he had a criminal background. Myers pleaded guilty in 2005 to concealment of assets, money laundering and perjury. He was sentenced to 15 months in federal prison.
After Myers received the money from the investors, he "converted the vast majority of the funds for his personal use," the order said.
The order said the investor hasn't received any return on the principal investment.