Attorney General's News Release

May 9, 1996

Kansas man given five-year sentence on securities fraud charges

Jefferson City, Mo. — A Johnson County, Kan., man was sentenced today to five years in prison after pleading guilty to defrauding two Kansas City, Mo., residents of more than $90,000 in cash and property.

Michael L. Eddins was indicted in October 1994 by a Jackson County grand jury on securities fraud charges at the request of Missouri Attorney General Jay Nixon. He pleaded guilty to two fraud charges in December.

“Anyone taking advantage of the trust of Missouri investors runs the very real risk of having a forwarding address in prison,” Nixon said. “We won't tolerate white-collar crime any more than street crime.”

Circuit Judge Jay Daugherty imposed a five-year sentence on Eddins for one of the charges and ordered him to pay restitution to his victims as part of his probation on the other charge. The amount of restitution will be determined by the Board of Probation and Parole.

Eddins, through his company, G.E. Management, solicited investors for funds to purchase residential properties to convert into rental units. Nixon had accused Eddins of committing securities fraud by:

• Telling an investor he owned properties that he didn't own.
• Telling an investor he would record second mortgages on these properties.
• Telling an investor he would record a first mortgage on a property for that investor, and instead recording a first mortgage for a different investor.
• Failing to disclose previous misdemeanor and felony convictions.
• Failing to disclose lawsuits filed against him in connection with real estate dealings.
• Accepting payments for transactions without fulfilling the payment agreements.

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