ALABAMA SECURITIES COMMISSION
770 WASHINGTON AVE, SUITE 570
MONTGOMERY, ALABAMA 36130-4700
TELEPHONE (334) 242-2984
FAX (334) 242-0240
FOR IMMEDIATE RELEASE
MONTGOMERY, ALABAMA (December 18, 2001) The Honorable Van Davis, District Attorney, 30th Judicial Circuit, St. Clair County, Alabama and the Honorable Joseph P. Borg, Director, Alabama Securities Commission announced today that William Bryan Kash appeared before the Honorable Judge William Hereford, December 12, 2001, to determine restitution and payments to victims of a securities fraud scheme.
At the restitution hearing Kash was ordered to pay $1,375,433.24 to victims. He must make a monthly payment of $500 and periodic reviews will determine if the payment will be raised. Judge Hereford encouraged Kash to seek employment commensurate with his job skills and experience to produce an income that will accommodate the payment of restitution. It is estimated that the victims may only receive about ten cents back for each dollar invested.
Kash previously pled guilty to the offense of selling unregistered securities in violation of Ala. Code §8-6-4 (1975), September 26, 2001. Kash received a three year sentence, which was suspended. His requirement of probation is to pay restitution to all victims, not just those on the indictment.
Kash, a former stockbroker from Pell City, was previously indicted by a St. Clair County Grand Jury for misrepresentation, failure to register to sell securities and for selling unregistered securities in Alabama. Kash collected money from investors seeking a profit in the investment of viaticals. The viatical business makes money by purchasing life insurance policies from people who have a terminal illness at a substantial discount from the face amount of the policy.
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Buying interests in viatical contracts can be risky. With advances in medicine and medical technology people who were once diagnosed with short life spans may live much longer. Also, the premiums on life insurance policies supporting investments must be paid so the policies will remain in effect until the insured person dies. Promises of ‘guaranteed’ returns or a description as a ‘no risk’ investment are false.
The Director of the Alabama Securities Commission (ASC) cautions potential investors to thoroughly check out any investment opportunity. Contact ASC for inquiries regarding securities broker-dealers, agents, investment advisors, and investment advisor representatives, the registration status of securities, to report suspected fraud, or obtain consumer information:
Call: 1-800-222-1253 Fax: 1-334-242-0240.
Alabama Securities Commission,
770 Washington Ave., Suite 570,
Montgomery, Alabama 36130-4700
The internet is a great source of free investment information. A good starting point is the new ASC website at: www.asc.state.al.us.
FOR ADDITIONAL INFORMATION CONTACT:
Joseph P. Borg
Daniel G. Lord
Education and Public Affairs Manager