Blunt - Fraud costs Missourians over $3 million

SPRINGFIELD, Mo. -- Eight people face legal action as part of a statewide crackdown on investment fraud that cost Missourians more than $3 million.

Secretary of State Matt Blunt said Wednesday that the crackdown is part of an effort by his office to thwart con artists operating in Kansas City, St. Louis and Springfield areas.

Most of the cases involved investments in so-called coin-operated, customer-owned telephones.

"My message to con artists in Missouri is this, 'This office is going to prosecute you to the fullest extent of the law. Investment scams will get nothing but grief in Missouri,"' Blunt said during a stop Wednesday in Springfield.

Blunt said his office acted along with the Missouri Attorney General's office and county prosecutors to file separate cases against men in Springfield and Kansas City.

Larry K. Gaither of Springfield was charged Tuesday in a 26-count felony complaint in Greene County Associate Circuit Court.

The charges allege Gaither was not licensed to sell more than $350,000 in unregistered investments to 11 Missourians.

The sales were made through his business, Gaither Financial Group, Blunt said. Most were to be guaranteed by a promissory note under the name of New Horizons Trust, which was not registered with any state or federal agency.

According to court documents, New Horizons Trust was under the control of a California man, Gayle E. Porter.

Investment deals

He was charged in May with federal wire fraud and has since pleaded guilty to misappropriating money from investors.

Gaither allegedly told investors their money would be used for real estate deals, authorities said. Most were promised a 15 percent return.

Gaither instead converted the money for personal use and investors got nothing, authorities said.

Greene County Prosecutor Darrell Moore has appointed Securities Commissioner Doug Ommen as assistant prosecutor to oversee Gaither's prosecution.