Heartland Production and Recovery LLC is accused of selling unregistered securities through unregistered agents.
The Sonn Law Group is investigating allegations that Heartland Production and Recovery LLC sold unregistered securities through unregistered agents. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.
On January 1, 2020, the State of Michigan Department of Licensing and Regulatory Affairs filed a notice and order to cease and desist against Heartland Production and Recovery LLC (“HPR”). The Department ordered Heartland Production and Recovery LLC to, “cease and desist from employing or associating with an unregistered agent, contrary to the Securities Act.
According to the order, HPR offered and sold securities in Michigan. The securities that were sold were unregistered, pursuant to 17 CFR 230.506(c). The order states that there is not a dispute as to HPR’s use of the federal exemption to cover the unregistered securities.
However, the order also states that HPR engaged the services of salespeople around the United States to offer and sell its securities, including in Michigan. Multiple salespeople in Michigan assisted investors to effect transactions in Heartland Production and Recovery LLC’s securities pursuant to an Engagement Letter and Standard Operating Procedures which outlined the salespeople’s authority to represent HPR as the issuer of securities.
The salespeople were authorized under the Engagement Letters and Standard Operating Procedures to discuss the merits and risks of the investment and to “stimulate interest in the Shares.” Salespeople were further encouraged to deliver sales materials with a “warm relationship” and to have an “enthusiastic discussion” with potential investors about investing with HPR. The salesperson-investor relationships went beyond mere location, introduction, or referral to the investment opportunity and included promotion of the securities to investors. Some salespeople were also paid transaction-based compensation to facilitate sales of HPR’s securities.
The State ordered that HPR immediately cease and desist from employing or associating with an unregistered agent, contrary to the Securities Act, and intends to impose a $20,000 fine against HPR for the misconduct.
Contact Us Today
The Sonn Law Group is investigating allegations that Heartland Production and Recovery LLC sold unregistered securities through unregistered agents. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.