Seller, product unregistered in Tenn.; ads appeared in Ga. newspaper
NASHVILLE – The Securities Division has filed a summary cease-and-desist order against Tennessee resident Jerald Follis, a Chattanooga resident. Follis is offering prospective investors the opportunity to invest in “projects” involving unregistered promissory notes. The promissory notes are tied to money-transfer scenarios often seen in e-mail scams (otherwise known as Nigerian scams).
Follis is not properly registered with the Tennessee Securities Division to sell any type of securities product. Neither the projects nor the promissory notes are properly registered securities products with the Tennessee Securities Division; they cannot be sold to the public. The advertisements appeared in the Atlanta Journal-Constitution in July and October.
“The Tennessee Securities Act authorizes this kind of immediate action,” says Commerce and Insurance Commissioner Leslie A. Newman, “to safeguard Tennessee investors and to notify the public to prevent others from making this type of unregistered investment.” Tennessee law requires anyone who would engage in the sale of securities to register as a broker-dealer and, to register any securities product with the Securities Division.
“We encourage all Tennesseans to check with the Securities Division to see if a person offering to sell them securities products is registered and if the products are registered,” says Securities Division Assistant Commissioner Daphne Smith. “This should be considered a fundamental first step by Tennessee residents when weighing investment options.”
The order may be viewed at http://tn.gov/commerce/securities/documents/Follis.Order.pdf. Tennesseans with questions or concerns about securities products, salespeople or transactions may contact the Securities Division at 615-741-2947, 1-800-863-9117 or 615-532-8375 (fax). They also may e-mail the division at Securities.1@tn.gov.
About the Tennessee Department of Commerce and Insurance
The Department of Commerce and Insurance works to protect consumers while ensuring fair competition for industries and professionals who do business in Tennessee. www.tn.gov/commerce/
