WILMINGTON, NC (WWAY) — The North Carolina Secretary of State’s office has told Sen. Thom Goolsby (R-9th District) and a business partner to stop their work as investment advisers.
The Secretary of State Securities Officials issued a Final Consent Order in a case involving the Empowered Investor Inc., which is owned by Goolsby and James Upham.
The order was issued after Secretary of State Division of Securities investigators found that the company and the two investment advisers marketed an investment strategy they termed the “10-20-50 Plan.” According to a news release from the Secretary of State’s office, the plan supposedly invested clients’ money in a way where investments losing more than 10 percent would be sold to prevent further loss, investments earning more than 20 percent would be sold to capture the gains, and no more than 50 percent of the clients’ accounts would be invested in securities at any one time. Investigators determined this plan frequently was not followed, resulting in greater client losses than if failing investments had been sold once they suffered a 10-percent loss. Investigators also found clients were not told their money was being invested in a way that was different than being advertised.
As part of the consent order, the company and the two investment advisers had their investment adviser registrations revoked by the Secretary of State’s Office. The order also requires the three parties to wait 10 years before seeking to register as investment advisers again.
Empowered Investor Incorporated, Upham and Goolsby were also ordered to cease and desist from engaging in any practice involving securities or financial services business in North Carolina.
Goolsby, who was elected to the North Carolina Senate in 2010, announced earlier this year he would not seek a third term in office. He has said he wants to spend more time with his family and on his Wilmington law practice.
Stay with WWAY NewsChannel 3 for more on this developing story.
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