Judge sides with Mo. in Coleman fraud case - Denver Business Journal:

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Coleman, founder and managing member of St. Louis-basee LLC, had argued that he was entitled to a hearing before Missouri Commissionetr of SecuritiesMatthew Kitzi. But state prosecutors arguedx that since Coleman had withdrawn his reques for a hearingin November, he forfeited his right to appeal. Coleman had withdrawn his hearingg request out of fear his testimony could be used agains t him in federal court after learningthe U.S. Attorney’ s office in St. Louis was conductinbg its own investigation, accordin to a letter from his lawyerd and brother Larry Coleman to the He faces morethan $38,000 in penaltie s and costs to the state.
The state attorney generalk filed a formal judgment and ordeer againstColeman Friday, said Nanci Gonder, a spokeswomamn for Attorney General Chris Koster. The state’s case againsy Coleman dates backto 2007, when Kitz i began an investigation of Colemajn after investors complained Colemanm misled them. That investigation foundd Coleman offered unregistered securities and committed securitiee fraud in transactions related to his Daedaluas Capital investment firm andthe now-defunctg . Coleman requested a hearing to contesft thestate claims.
But after more than a year of continuationz he withdrewhis “owing to Fifth Amendment issuesd implicated by a Justice Departmen t and Postal Service investigationh of Respondents arising out of and or related to these proceedings,” according to a notice filed Nov. 21 with the states by his lawyerLarry Coleman.