The Idaho Department of Finance has settled a securities civil lawsuit with Ammon insurance agent Kyle Bennett. The department said Bennett was not registered to offer or sell securities.
The lawsuit involved the offer and sale of more than $600,000 in promissory notes. According to a department news release, Bennett agreed to findings that he violated the securities sales agent registration and the securities registration providison of the Idaho Uniform Securities Act.
Bennett did not admit nor deny the state's allegations of misrepresentations and omissions of important information.
The department said notes were issued or otherwise associated with a Utah company known as Horizon Auto Funding, LLC. The sales were intertwined with insurance business that Bennett conducted on behalf of the Utah group.
Several of the Horizon entities and their principal are presently in bankruptcy.
A Department of Finance case against Bart T. Taylor of Ammon is continuing.
The Department of Finance wants to remind investors that life settlements and viatical settlements can be risky investments. A life settlement allows you to invest in another person's life insurance policy at a price less than the death benefit of the policy, and investor returns are based solely on how long the insured might live. Although life settlements are often sold as a "sure thing", there are significant risks and important considerations for investors that are not always disclosed.
The department also cautions investors about promissory notes, which are often a favored investment vehicle for Ponzi schemes. A;tjpigj promissory notes can be legitimate investments, those that are marketed broadly to individual investors often turn out to be scams. Before you consider investing in promissory notes, be sure you understand how they work and what risks they pose.