Local Business faces consequences from unregistered securities
It is of utmost importance to properly register your securities with your state. Recent news from the North Dakota Securities Commission shares unregistered securities consequences in their latest story: The state’s Securities Commissioner, Karen Tyler, has taken significant actions against individuals involved in unauthorized securities activities. This case involves Michael J. Rydell of Fargo and Ireland & Sando, LLC, a company under his control, who have been ordered to halt their alleged sale of unregistered promissory notes amounting to at least $200,000. In addition, Rydell has been found to have acted as an unregistered agent in securities transactions and an unregistered investment adviser representative, earning commissions and fees totaling at least $59,250. As a consequence of their actions, the Commissioner has mandated the repayment of the promissory note investment and imposed penalties equal to the unlawfully obtained compensation.
According to the Securities Department’s investigation, between June 15, 2018, and December 20, 2020, Rydell had been actively soliciting investors to purchase membership interests in two private funds managed by Jeremy L. Carlson and his investment adviser firm, Jamieson Capital Financial, LLC. As a result of Rydell’s efforts, Carlson used investor funds to pay Rydell a 3% commission on the investments he brought in, and an additional $5,000 in advisory fees.
Moreover, the investigation revealed that Rydell’s firm, Ireland & Sando, issued a $200,000 promissory note on or about April 1, 2020, which was subsequently sold to Secure Income Fund, LLC—a private fund entity also operated and controlled by Carlson. However, it appears that Rydell and Ireland & Sando have failed to fulfill their obligations, as all principal and interest accrued on the promissory note remain unpaid to Secure Income Fund, LLC.
This case serves as a stark reminder of the potential risks investors may face when dealing with securities transactions. It underscores the significance of seeking professional advice and assistance from experienced securities attorneys before engaging in any investment ventures.
Here are some key takeaways from this local story:
- Compliance with Regulations: Securities laws and regulations can be complex and vary from state to state. Working with a knowledgeable securities attorney ensures that individuals and companies abide by all legal requirements, reducing the likelihood of running afoul of the law.
- Protection for Investors: Securities attorneys play a crucial role in protecting the interests of investors. By conducting due diligence and verifying the legitimacy of investment opportunities, these attorneys can help investors avoid fraudulent schemes and risky ventures.
- Oversight and Accountability: Securities attorneys can provide oversight and ensure that all parties involved in securities transactions adhere to ethical practices and fulfill their obligations. In the event of misconduct or non-compliance, they can pursue legal action on behalf of their clients.
- Navigating Complex Transactions: Securities transactions can involve intricate legal agreements and documentation. Securities attorneys are well-versed in handling such complexities, reducing the potential for errors or misunderstandings that could lead to legal issues.
- Response to Regulatory Actions: In cases where individuals or businesses face enforcement actions by regulatory authorities, securities attorneys can provide representation and guidance throughout the investigation and legal proceedings.
In conclusion, the story highlights the critical importance of working with a securities attorney. By doing so, investors can work towards safeguarding their interests, navigate legal complexities, and ensure compliance with all relevant laws and regulations. Remember that the services of an experienced securities attorney, such as those provided by Fargo Patent and Business Law, can be invaluable in achieving successful outcomes in the world of securities. Contact us today if you are in need of securities services.
