of State Robin Carnahan today announced officials in her office issued a Cease
and Desist Order
against a St. Louis pair, Armod L. Hinkle
and his mother, Gina
, for selling unregistered investments and spending $178,000 of their
investors' money on personal expenses.
In 2006, the Hinkles
formed a business, Direcutec, LLC
, to develop, market, and sell personal
digital assistants and software products to law enforcement, health care, and
restaurant services industries. According to the order, the Hinkles sold
membership units in Direcutec to at least 14 investors by promising returns of
up to $3 million on a $10,000 investment
The Hinkles allegedly raised more than
, but did not use the money to start the business. Instead,
most of the money was spent on mortgage payments, cosmetics, personal
insurance, and cash withdrawals
Additionally, a credit card under the
company's name racked up $21,000 in charges at restaurants, groceries and
extremely cautious if promised unusually high returns," Carnahan said.
"Before you invest, one call to the Investor Protection Hotline 1-800-721-7996) can
protect your savings."
to the order, no sales were made by the Hinkles related to the development and
marketing of personal
digital assistants and software. Missouri Securities Division records indicate that
neither the Hinkles nor the membership units they were offering were registered
with the Secretary of State's office, as required by Missouri law.
the Hinkles failed to provide Securities Division investigators with any
information showing that steps were taken to purchase inventory, licensing
agreements, or client prospects. The Hinkles now have 30 days to respond to the
order and request a hearing.