Securities lawsuit settled

A Bonneville County District Court has issued a permanent injunction against Tony S. Sellers of Idaho Falls. Sellers was sued by the Idaho Department of Finance in March, alleging Sellers violated Idaho’s Uniform Securities Act.

The department said Sellers sold $4,600,000 in charitable gift annuities to 24 elderly investors that were not registered. The suit alleged Sellers was not licensed to sell the investments, that he made misrepresentations, and failed to disclose material information in conjunction with the security sales.

As part of the consent judgement, Sellers will pay a $20,000 civil penalty for his part in the sale of annuities owned by an organization known as “We the People”. He also agreed to stop selling any financial product other than insurance products offered by companies that are registered or licensed with the Idaho Department of Insurance. According to the department, Sellers was previously sanctioned for the improper sale of another investment product.

“We the People” is the subject of a federal civil enforcement action brought by the U.S. Securities and Exchange Commission. All of the company’s assets have been turned over to a court-appointed receiver. The Department of Finance anticipates Idaho investors will have some of their investment returned.