Michigan Man Accused of Investment Scam Against Elderly
Michigan Man, Richard Craig Stitt, Accused of Scamming Elderly Woman out of $44K in Missouri Investment Scam
Missouri regulators have accused Richard Craig Stitt, of Clinton Township, Michigan, of scamming a now 76-year-old woman out of more than $44,000, according to a securities news release issued by the Missouri Secretary of State. Stitt, allegedly acting as an unregistered securities agent, is accused of taking investments in his company, Liberty Technologies, Inc, after it had lost its corporate status in Kansas. He stands accused of failing to disclose the true status of the company and other material facts to the investor.
In its Order to Cease and Desist, the Securities Division asserts that Stitt met the investor (“MR”) at a Missouri social event in or around late 2007. Despite the fact that Liberty Technologies had forfeited its corporate status on July 15 of that year, Stitt allegedly told MR that she could invest in his company. In exchange for her investments, MR was given preferred stock certificates that allegedly misrepresented Liberty Technologies as a Missouri corporation and promised annual returns of 10%.
According to the Order, MR made at least 13 investments in Liberty Technologies from Oct. 2008 through Aug. 2010. She also allowed Stitt to live in her home for approximately four months. Despite the promises and representations that Stitt allegedly made to MR, the investor never received any returns on her investment.
The Missouri Secretary of State filed the Order to Cease and Desist on July 31, 2012. Stitt has 30 days to request a hearing on the matter. Based on the allegations against him, he faces potential penalties and costs of more than $45,000. He also may be ordered to pay restitution to the allegedly defrauded investor.