Jefferson City, Mo. — Secretary of State Jay Ashcroft’s Securities Division ordered Roy Harris Jr. and his companies Orthogistic Labs Inc., Orthogistic LLC and Amniogistic LLC to cease and desist after allegedly selling more than $1 million in unregistered, non-exempt securities to at least 25 investors.
The order also alleges that Harris and his companies made untrue statements, omitted material facts and engaged in fraud. Harris is from Rogersville, Missouri, and his companies operated in Austin, Texas; Hudson Oaks, Texas; and Springfield, Missouri.
From approximately June 2014 to May 2017, Harris solicited at least 25 investors to invest more than $1 million in unregistered stock in his companies. Prior to the investments, Harris failed to disclose to investors, among other things, that he was convicted of securities fraud, deceptive business practices and felony stealing in 2002; more than $700,000 in judgments; or a federal tax lien of more than $845,000.
Harris also posed as a former Orthogistic Labs attorney in correspondence with investors. Harris’s bank records show that a large portion of the investment funds were used to pay back earlier investors, to settle lawsuits and to pay for personal expenses. Total investor losses are estimated to be at least $622,000.
“Most investors will avoid dealing with convicted criminals, if they know about their backgrounds,” Securities Commissioner David M. Minnick said. “Not disclosing that kind of information before soliciting or receiving investment funds is fraud and our office will not tolerate it. If you have questions or concerns about the person you are investing with, contact our office.”
The division also ordered Harris and his companies to show cause why they should not be ordered to pay restitution plus interest, civil penalties and investigation costs totaling more than $800,000.
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.