St. Louis Online Gaming Company Accused of Fraud
JEFFERSON CITY, Mo. — Missouri Secretary of State Robin Carnahan announced Thursday a securities fraud action against MVP Network, Inc., and Paul A. Schneider of St. Louis, Mo., concerning the marketing and sales of MVP stock after the company went into receivership.
According to the cease and desist order issued by officials in Carnahan’s Securities Division, Schneider allegedly misrepresented himself and MVP while offering and selling shares of stock in the company. MVP was placed into receivership in April 2010. But in trying to sell MVP stock, Schneider allegedly did not tell investors that MVP was in receivership or that Concord Bank had possession of all MVP assets. He also allegedly failed to mention a September 2010 judgment in excess of $4 million issued against MVP and others.
“Investors deserve to know all the facts about a company when someone is pitching them to buy stock or invest in the company’s future,” Carnahan said. “For instance, if a company has serious financial or legal troubles, investors need to know that before they purchase stock.”
The order further alleges that Schneider offered and sold over $35,000 in MVP stock to investors after the company was in receivership and all of his interest in MVP stock was assigned to Concord Bank. Schneider allegedly told these investors to wire or send investment funds to a bank account he opened under a company owned by his step-daughter. When contacted by the Missouri Securities Division, the step-daughter allegedly claimed she did not know about the account or authorize Schneider to use the account.
MVP and Schneider face up to $20,000 in penalties and the possibility of paying costs of the investigation and full restitution to the harmed investors. Respondents have 30 days to request a hearing and contest this matter. The Securities Division is cooperating in this matter with other law enforcement agencies.
For more information regarding investments and fraud protection, or for information regarding a company or representative, visit the Missouri Secretary of State’s online Investor Protection Center at www.MissouriInvestorProtection.gov or call the toll-free Investor Protection Hotline at 1-800-721-7996.