Mo. Secretary of State Ashcroft: Securities Divisions Orders Halt to Investment Agents Soliciting $1 Million From 8 Elderly Missourians

JEFFERSON CITY, Missouri, Feb. 25 -- Missouri Secretary of State Jay R. Ashcroft issued the following news release:

Secretary of State Jay Ashcroft's Securities Division ordered Daniel Madasz, Kenneth Marg, John Myers and their companies to cease and desist after allegedly misleading eight elderly Missourians to invest in unregistered promissory notes.

Between February 2014 and June 2018, Madasz, Marg and Myers allegedly raised over $1 million in unregistered promissory notes from eight elderly Missouri investors. The investors -- residents of Belton, Independence, Warrensburg and Lee's Summit -- were defrauded through misleading omissions, untrue statements and promises of large returns into investing in Skytec Security Services LLC and Skytec KC LLC. Madasz, Marg, Myers and their companies operated a Ponzi-like scheme to use new investor funds to pay earlier investors. Most investors received virtually none of their money back.

"Seeking large returns on your life savings is very enticing in theory, but in reality involves risks you may not be able to afford to take," Ashcroft said. "When it sounds too good to be true, it usually is. If someone offers you an investment opportunity, always check with our office before you invest."

The division ordered the three agents and their companies to show cause why they should not be ordered to pay civil penalties, restitution plus interest and investigation costs totaling more than $1.9 million.

Ashcroft urges all investors to know the risks. If you have any questions about an investment opportunity or wish to check the background and registration status of a financial adviser, please call the toll-free investor protection hotline at 800-721-7996, or go online to www.missouriprotectsinvestors.com to file a complaint.