Judge Upholds Insurance Division’s Punitive Action and Fine Imposed on Ottumwa Man.
Consumers urged to be cautious in making investments
Des Moines, October 14, 2011 – Administrative Law Judge Heather Palmerhas issued ajudgment that The Cease and Desist order and fine imposed by the Iowa Insurance Division (IID) against John Holtsinger of Ottumwa was supported by the evidence presented to the court. Earlier this year, IID had issued an order after it alleged that Holtsinger was acting as an unlicensed seller of investment securities, and selling an unregistered product. Other charges included misrepresentation and failure to disclose information related to the investment.
An Iowa resident had complained to IID about irregularities with his investment through Holtsinger, leading to the Division’s investigation of Holtsinger and his activities. Holtsinger had issued securities in the form of three promissory notes totaling $196,000 in a manner that the Division stated were in violation of securities statutes.
The Iowa Insurance Division acts as a resource for individuals who may be victims of illegal or unlicensed investment schemes. Iowans with concerns about their investments through individuals or businesses selling investments are encouraged to call the Division’s toll-free number (877)-955-1212 to ascertain the status of investment products or the people selling them.
Individuals selling securities in Iowa must be properly licensed to do so, and investments must be registered. Investments outside of those permitted by law expose investors to great risk, with little change of recovery of invested funds.
“We have a motto here at the Division,” said First Deputy and Securities Administrator for the Division Jim Mumford. “Stop, Call and Confirm. Simply put, it means to stop before getting into any investment, call the Division, and confirm that you are dealing with licensed persons and registered products.”
About the Iowa Insurance Division
The Iowa Insurance Division (IID) has general control, supervision and direction over all insurance and securities business transacted in the state, and enforces Iowa’s laws and regulations. The IID investigates consumer complaints and prosecutes companies, agents and brokers engaging in unfair trade practices. Consumers with insurance or securities-related questions or complaints may contact the IID toll free at 877-955-1212 or visit the division on the web at www.iid.state.ia.us.