Nebraska orders firms to quit selling investments

AP News
Posted: Nov 18, 2009 9:38 AM

Nebraska officials say two related Omaha companies have been improperly selling unregistered investments promising as much as a 1,000 percent annual return.

The Nebraska Department of Banking and Finance said Tuesday it ordered Citywide Financial Service Corp. and K&R Development LLC to quit selling investments.

Both companies, which shared employees and a west Omaha address, sold investments to at least four investors, but officials could not say Tuesday how much money had been invested.

Efforts to reach the companies were unsuccessful because Citywide changed its number to an unlisted one and no one answered the number listed for K&R.

Officials say the firms failed to disclose the risks and failed to register the investments with the state.