Attorney Generals News Release

July 14, 1995

Gladstone woman sentenced for felony securities fraud

Jefferson City, Mo. — A Gladstone woman who pleaded guilty to six counts of securities fraud was sentenced Thursday by Clay County Circuit Judge Rex Gabbert to 8 years in a state prison for each count. The sentences will run concurrently. Charges were brought last October by a Clay County grand jury at the request of Attorney General Jay Nixon.

Rebecca A. Broyles, 48, admitted she misled investors and used money intended for real estate investments for her own personal use. Nixon recommended that Broyles receive a prison sentence.

“My office will continue to criminally prosecute securities dealers that swindle and defraud investors,” Nixon said. “This sentence will send a clear message that investment fraud will be vigorously prosecuted.”

Broyles solicited investors between 1988 and 1993 by offering and selling corporate notes issued by the Pearl Corp. In pleading guilty, Broyles admitted that:

• She represented to investors that they were being given the opportunity to invest money for a short-term purchase of real estate when, in fact, she intended to use the funds for her own personal use.
• She told some investors that their money would go to a real estate developer who was developing an exclusive residential area outside Las Vegas and was arranging real estate transactions which would have a 50 percent gain once the house were completed when, in fact, no such transactions had been negotiated.
• She failed to tell investors before they gave her money that she and her corporations had $1.5 million in outstanding debts and unpaid judgments.

Nixon recommended that investors carefully consider the amount of risk they are willing to assume and ask for written information on all investments. Investors also should contact the Missouri Securities Division to determine if the investment and the seller are registered. If they are not registered, Nixon said, there may be additional hidden risks.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818