MCPHERSON – (March 2, 2021) – A Kentucky man has been convicted and sentenced for a violation of the Kansas Uniform Securities Act, Kansas Attorney General Derek Schmidt said today.
David Brown, 46, of Bowling Green, Kentucky, pleaded guilty on Monday in McPherson County District Court to one count of selling an unregistered security. The case stemmed from an investigation by the Office of the Kansas Securities Commissioner regarding investor funds solicited by Brown on behalf of a Tennessee business and an Oklahoma oil and gas venture. Brown solicited the funds from a McPherson County resident in December 2014, resulting in a $25,000 investment in 2015. Brown was not registered as an agent as required by the Kansas Uniform Securities Act to sell securities.
After accepting Brown’s guilty plea, District Judge John B. Klenda sentenced Brown to 36 months of probation and ordered him to pay $25,000 in restitution to one Kansas victim.
The case was prosecuted by Assistant Attorney General Stacy Edwards of Schmidt’s office.