28 February 2024
WICHITA, Kan. (KSNW) — The Kansas Insurance Department Securities Division has issued a cease-and-desist order against a Wichita investor and his company.
According to Kansas Insurance Commissioner Vicki Schmidt, the order is against Nathaniel L. Smith and Smith General Ventures LLC for alleged Kansas Uniform Securities Act violations.
According to the order, several of Smith’s investors claimed they asked him to return some or all of their funds, which he did not. The order also says that, according to investors, Smith promised to give investors updates every other week on their funds, but he became “unresponsive to their inquiries.”
The order says Smith General Ventures LLC acted as an investment adviser as defined by state statute yet did not register under the Kansas Uniform Securities Act. It says that Smith and Smith General Ventures LLC violated or were about to violate several state statutes.
The order calls for Smith and his company to immediately cease and desist from acting as investment advisers in Kansas until they are registered under the Kansas Uniform Securities Act.
Smith is also ordered to immediately “cease and desist from offering or selling securities in Kansas unless the securities” are federally covered securities that are exempt from registering in Kansas or are registered under the Kansas Uniform Securities Act.
KSN News has attempted to contact Smith for a response. We have not heard back yet.
If you suspect a violation of Kansas securities laws, contact the Securities Division at the Kansas Department of Insurance at 800-432-2484 or by email at [email protected].