- Published on Wednesday, 28 May 2014 14:53
- Written by Super User
RALEIGH, N.C. : February 22nd, 2014 - North Carolina Secretary of State Securities Officials have issued a Final Consent Order in a case involving the investment adviser company Empowered Investor Incorporated and two investment advisers associated with the company, James Daryl Upham and North Carolina Senator Thomas Cowart Goolsby, both of Wilmington. Upham and Goolsby were the co-owners of the company.
The order was issued after Secretary of State Division of Securities investigators found that the company and the two investment advisers marketed an investment strategy they termed the “10-20-50 Plan.” This plan supposedly invested clients’ money in a way where investments losing more than 10 percent would be sold to prevent further loss, investments earning more than 20 percent would be sold to capture the gains, and no more than 50 percent of the clients’ accounts would be invested in securities at any one time.
Investigators determined that this plan frequently was not followed, resulting in greater client losses than if failing investments had been sold once they suffered a 10 percent loss. Investigators also found clients were not told their money was being invested in a way that was different than being advertised.
As part of the consent order, the company and the two investment advisers had their investment adviser registrations revoked by the Secretary of State’s Office. The order also requires the three parties to wait 10 years before seeking to register as investment advisers again.
Empowered Investor Incorporated, Upham and Goolsby were also ordered to cease and desist from engaging in any practice involving securities or financial services business in North Carolina.
Anyone with questions about investment offerings or wanting to learn more about wise investing is urged to visit the NC Secretary of State Division of Securities website at sosnc.com. To check on someone offering an investment for sale, call 1-800-688-4507 or 919-733-3924.
Source: North Carolina Secretary of State.