REDWOOD FALLS - The State of Minnesota Department of Commerce recently issued a Case and Desist Order and Notice to a Jeffrey C. Rodd and Redwood Valley Interests, (RVI) LLC.
The matter came from the sale of unregistered securities by Rodd who was not licensed to sell securities in Minnesota. Sales appear to be ongoing, recently as Promissory Notes, according to the order.
Sales took place while Rodd knew it was wrongful due to prior regulatory activity, and appear to be part of a pattern of activity to defraud investors, according to the order.
The Department took eight statements on Jan. 8, 2013 from investors who bought unregistered securities. Statements were also taken from Rodd and others. Materials were sent to the Department of Financial Industry Regulatory Authority (FINRA), according to the order.
Rodd was licensed to sell insurance in Minnesota since 1991. RVI was formed in 2004, but administratively terminated by the Minnesota Secretary of State in 2006. The entity's registration was renewed with the Secretary of State as an LLC on March 1, 2012, but it was never licensed as an insurance agency, according to the order.
A former police officer, Rodd became involved in a series of illegal activities promoting investments facilitated by his active participation in a lead generation radio program called "Safe Money Radio." Beginning in 2008, he prepared and ran radio programs promoting investments in large parts of Minnesota and other parts of the Midwest, according to the order.
On Oct. 29, 2001, Rodd entered into a Consent Order with the Minnesota Department of Commerce that cited the sale of unregistered securities in the form of telephone purchases and service investment contracts. He was cited for not having the necessary broker or securities agent license to sell the contracts, according to the order.
In a related action by the Securities Exchange Commission (SEC), Rodd was ordered to return $38,340 to investors. At the same time, three investors sued Rodd independently. The cases settled for $22,000, according to the order.
Regulatory and private actions described arose from the sale of investment contracts bought through J. David Spitzer, principal of the investment contract issuer, American Telecommunications Co., Inc. and Alpha Tel-Com, Inc. (ATC).
For more information, visit www.mn.gov/commerce
(Fritz Busch can be e-mailed at firstname.lastname@example.org).