LITTLE ROCK — In fraud probe, 3 get cease-desist
The Arkansas Securities Department issued a cease-and-desist order on Thursday against Money in the Bank Inc., Sun Vest LLC and James Banning of Hot Springs.
The department said Banning, president of both businesses, sold unregistered securities to several investors. Under the investment plan, investor money was to be used primarily to buy Arkansas real estate at tax delinquency sales.
After the property was acquired, Banning and the businesses were supposed to manage the repair of the property and find renters or buyers for the property.
Investors were promised returns of 25 to 50 percent on their investment.
Banning failed to tell investors of the multitude of risks involved with the scheme, as well as the type of property to be purchased and how investor money was to be used.
Three California residents invested a total of $80,000 and an Arizona resident invested $50,000 with Banning. Six other out-of-state residents invested in the scheme, but their investments were not disclosed in the department’s order.
Banning declined to comment about the department’s order.
- David Smith
Fayetteville’s VIC launches new fund
Fayetteville-based VIC Technology Venture Development said Thursday a new fund will allow it to give $250,000 in start-up money to each new business it creates.
The VIC Investor Network fund will allow the company to shorten the development time of its portfolio holdings, according to a release. VIC has 12 portfolio companies in fields including nanotechnology, cancer diagnostics, pharmaceuticals and semiconductors.
VIC plans on adding four new companies to its portfolio annually.
In 2011, VIC became an equity partner with Atlantic Virtual Incubation Co., which operates in the Boston area.
VIC Technology Venture Development was formerly known as Virtual Incubation Co., and was founded by Chief Executive Officer Calvin Goforth in 2003.
-John Magsam
State index drops 1.09 as 11 decline
The Arkansas Index, a price-weighted index that tracks the largest public companies based in the state, fell 1.09 to 263.18 Thursday.
Eleven stocks declined, four advanced and one was unchanged.
Wal-Mart rose 1.5 percent on more than twice its average volume.
Arkansas Best dropped 3.6 percent in light trading.
First Federal lost 2.1 percent on twice its normal trading level.
The index was developed by Bloomberg News and the Arkansas Democrat-Gazette with a base value of 100 as of Dec. 30, 1997.
Business, Pages 25 on 02/22/2013