Jefferson City, Mo. — Secretary of State Jay Ashcroft’s Securities Division issued a final order against Adam Sharp and his companies after they sold unregistered, non-exempt securities to residents of Missouri, Arkansas, Texas and Louisiana.
The division found that Sharp and his companies — Social Inc., Social Automotive Management Services LLC and Sharp Management LLC — made untrue statements, omitted material facts and engaged in fraud.
From approximately January 2016 to June 2018, Sharp solicited at least 22 investors to invest $470,000 in a contract for an automotive shopping app. Sharp did not use the investors funds as he had promised them, instead he withdrew or spent the funds on personal expenses.
“Just because you are approached by a family member or long-time acquaintance, you shouldn’t be any less vigilant with your investments,” Ashcroft said. “Securities and the agents that offer them must be registered with our office. If you’re unsure, contact us before investing.”
The division ordered Sharp and his companies to pay restitution plus interest, civil penalties and investigation costs totaling more than $600,000.
Ashcroft urges all investors to know the risks. If you have any questions about an investment opportunity or wish to check the background and registration status of a financial adviser, please call the toll-free investor protection hotline at 800-721-7996, or go online to www.missouriprotectsinvestors.com to file a complaint.