ALABAMA SECURITIES
COMMISSION
770 WASHINGTON AVE, SUITE 570
MONTGOMERY, ALABAMA 36130-4700
TELEPHONE (334) 242-2984
1-800-222-1253
FAX (334) 242-0240
E-MAIL asc@asc.state.al.us
FOR IMMEDIATE RELEASE
MONTGOMERY,
ALABAMA (September 27, 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 pled guilty to
the offense of selling unregistered securities in violation of Ala. Code
§8-6-4 (1975), before the Honorable Judge William E. Hereford on September 26,
2001.
Kash
received a three year sentence suspended.
His requirement of probation is to pay restitution to all victims, not
just those on the indictment. A hearing
has been set to determine the amount of restitution and the manner of payment
before Judge Hereford on December 10, 2001.
Borg
said, "This case confirms that viatical settlement contracts and
related promissory notes based on
viatical settlement contracts are indeed securities as defined by the Alabama
Securities Act and the Court."
Kash,
a former stockbroker from Pell City, was accused of selling about $1.75 million
from 55 people. He 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- more -
Borg
said, "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.
Email:
asc@asc.state.al.us.
Write:
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 NASAA website at:
http://www.nasaa.org/).
###
FOR
ADDITIONAL INFORMATION CONTACT:
Joseph
P. Borg
Director
Daniel
G. Lord
Education
and Public Affairs Manager