Secretary of State files cease-and-desist order in investment scheme
MDN Menu
MDN.ORG Mo. Digital News Missouri Digital News MDN.ORG: Mo. Digital News MDN.ORG: Missouri Digital News

Secretary of State files cease-and-desist order in investment scheme

Date: December 12, 2012
By: Alexander Mallin
State Capitol Bureau

Intro: 
A St. Peters man has received a cease-and-desist order after failing to register $800,000 dollars he received in private investments.
RunTime:  0:44
OutCue:  SOC

Wrap: It's been four years since Michael Kitchen began accepting investments in his company PIF Financial Services.

The cease-and-desist order says Kitchen allegedly used the funds for car and pet product purchases, rent dues and entertainment expenses.

Matt Kitzi, a representative in the Missouri Securities Division, says that at least five investors contacted them after not receiving the astronomical returns they were promised when they invested.

Actuality:  KITZI.WAV
Run Time:  00:13
Description: "Past cases involving high-yield investment programs or prime bank schemes, both in Missouri and other states, those often are cases where its hard to make material recoveries to make investors whole."

Kitchen was unavailable for comment.

Reporting from the state capitol, I'm Alex Mallin.

Intro: 
At least five investors may be out $800,000 after the Secretary of State's office opened up an investigation on what it is calling a classic high-yield investment program scam.
RunTime:  0:40
OutCue:  SOC

Wrap: Michael Kitchen is the President of PIF Financial Services in St. Peters. He received a cease-and-desist order after failing to register with the Securities Division $800,000 he received in investments.

The order says Kitchen spent the money on car and pet product purchases, rent dues and entertainment expenses.

Matt Kitzi, a representative in the Missouri Securities Division, says that financial restitution in past cases where this much time has passed is unlikely.

Actuality:  KITZI2.WAV
Run Time:  00:08
Description: "Unfortunately in cases of fraud, too often the money is gone by the time regulators are made aware of the problem."

Kitchen was unavailable for comment.

Reporting from the state capitol, I'm Alex Mallin.

 


Missouri Digital News is produced by Missouri Digital News, Inc. -- a non profit organization of current and former journalists.