FOR IMMEDIATE RELEASE
October 30, 2006
Contact: OFIS (toll-free) 1-877-999-6442
Media/Press calls: Kathy
Fagan - 517-335-1700
OFIS warns consumers to be on the lookout for
seller of fake securities
of Financial and Insurance Services (OFIS) Commissioner Linda A. Watters
is warning consumers about an investment fraud that may be targeted at
residents in southeast Michigan.
Information obtained by OFIS indicates that the Kentucky Office of Financial
Institutions (KOFI) issued a voluntary permanent injunction against an individual
identified as Jewell Robbins (also known as Jewell Burgin) in June 2006 for
offering and selling unregistered investment interests in a legal judgment
(defined as securities under Kentucky law), using unregistered agents to
sell such securities, and failing to disclose material facts to investors
about the investment.
According to the KOFI injunction, Robbins was prohibited from offering or
selling investment securities without KOFI approval and was required to assist
KOFI in identifying all her investors and to furnish the agency with her
Just last week, KOFI filed a contempt of court motion against Robbins for
allegedly breaking the agreement to stop selling unregistered securities.
“According to the Kentucky Office of Financial Institutions, Jewell
Robbins is believed to have engaged in a long-running scheme to defraud investors,
and has been ordered to cease from these activities,” Commissioner
Watters said. “We now have reason to believe she may be offering or
selling, through her agents, unregistered securities to Michigan residents
and we want to warn the public.”
In a press release issued
in August, KOFI disclosed that Robbins began selling “interests
in litigation” in 1985. The idea was that investors would share in
awards from four lawsuits filed in Texas over rights to oil interests comprising
part of the Spindletop oil field. However, the lawsuits were dismissed.
Investors told KOFI officials that Robbins claimed the government or a certified
public accountant was holding money for disbursement. Robbins has been unable
to provide OFI representatives with any documentation to support this claim.
“Our office is seeking information from citizens who may have been
contacted by Robbins or any of her agents,” Watters said. “We
urge anyone who has been asked by Robbins to invest money in a similar scheme
to contact our office.”
Consumers with any information or questions regarding Jewell Robbins should
contact OFIS toll-free at (877) 999-6442.
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