WICHITA, Kan. (AP) – Kansas Securities Commissioner Josh Ney has ordered Derby-based Proud Veterans and its chief executive officer to stop selling securities in violation of state laws.
The agency on Monday announced preliminary findings that the company and CEO Nick Gnemi committed securities fraud by selling an unregistered security, making untrue statements and omitting material statements about the security.
At issue are investments toward stock and commodities of grain and milk that would be delivered to foreign countries.
Gnemi says Proud Veterans is primarily an agricultural, engineering and construction company that had solicited a couple of investors to work with it.
He says the service-disabled veterans’ company did not understand the state’s requirements and acknowledged that as a business it would do whatever is required to comply.