Brokers at two firms, in unrelated activities, unknowingly and unwittingly made cold calls to staff members of the Missouri Securities Division, Bruce Kelly of InvestmentNews reports.  In November and December of 2010, the state filed cease-and-desist orders against brokers from Financial Network Investment Corp., an indie broker-dealer, and Meyers Associates LP. 

FNIC is a leading independent broker-dealer, with over 2,000 reps and advisers and close to $300 million in annual gross revenue.  Meyers Associates has about 100 advisers, according to the Missouri action.

    FNIC's Cold Caller Hits 'Tri-Fecta'.   In November, RR Derek Robertson apparently hit the "trifecta" while pitching the Nuveen Multi-Strategy Income and Growth Fund 2. 

1. The RR called a registration specialist and an investigator with the Missouri Securities Division who were at work. 
2. The RR was not registered to sell securities in Missouri.
3. The RR told his "potential clients" that "they could expect a 20% to 25% return during that six- to eight-month period," which he characterized as "a 'realistic' and 'very conservative' estimate." 

    Meyers' Cold Caller Also Hit 'Tri-Fecta'.   Is it possible for lightning to strike the same spot twice?  YES, of course - why else would we ask a rhetorical question?  In December, RR Sukhwan Michael Yun called the same Missouri Securities Division office and spoke with a registration specialist, pitching shares of Nuance Communications Inc.

1. The RR called a registration specialist with the Missouri Securities Division. 
2. The RR was not registered to sell securities in Missouri.
3. The RR told his "potential client" that Nuance could reach $28 -$29 a share, based on a possible acquisition by Apple Inc.  During a 12/8 call, he “continued to pressure [the regulator] to make an immediate purchase, asking, ‘Why don't we do this?'” according to the Missouri order.  It's further alleged that Yun said Nuance was “the ‘Bentley' of stocks, would be ‘money in the bank,' and an investment in [the stock] was ‘safe money.'”

For further details, go to:   [InvestmentNews, 12/23, "Cold-Calling brokers ..."]