State revokes license of Salem investment advisor
The Oregon Department of Consumer and Business Services, Division of Finance and Corporate Securities has revoked the state investment advisor licenses of Kevin Winder of Salem and his business, Invest Northwest, for unethical business practices. Winder sold unregistered securities, misled investors, and used client funds for personal gain. The division also ordered repayment of approximately $830,000 to investors.
Winder and Invest Northwest have been fined $120,000, $10,000 of which is due within 60 days. If the $830,000 is repaid to investors within three years, the remainder of the fine will be waived.
Beginning in 2012, Winder advised clients who were retired or nearing retirement to withdraw money from their pensions and deposit it into a self-directed individual retirement account that Winder could access. Winder told clients he would use this money to invest in real estate backed securities; instead, investment funds were used to fund RW's Trucking & Hauling, a company that Winder partially owned. Winder then issued unsecured promissory notes.
In addition to issuing unregistered securities and misusing investment funds, Winder misled clients and failed to disclose his outside business activities and potential risks to investors when advising them. He also failed to act in the best interest of his clients by recommending investments that he had no reasonable reason to believe would be appropriate for his clients.
“This case is a perfect example of why it is so important to ask questions when investing,” said David Tatman, division administrator. “Don't be afraid to ask questions and to ask for answers and explanations in writing. If something doesn't seem right, or if it sounds too good to be true, don't hesitate to get a second opinion. Investors can easily check and verify information by contacting our office or going online.”
Information about licensing, registration, and enforcement history for individuals and companies can be found on the division website at www.dfcs.oregon.gov/consumer_info/before_you_invest.html or by calling 866-814-9710 (toll-free).
The full consent order can be read at www.dfcs.oregon.gov/enf_orders/S-14-0059.pdf
For more information:
Jake Sunderland, 503-947-7897
Jake.W.Sunderland@oregon.gov
