The Idaho Department of Finance has sued Idaho insurance agent Jerry Ward and his business, Med-Life, which operates from various locations in the state, including southwestern and northern Idaho.

The state alleges that beginning in 2006 Ward defrauded investors by offering and selling securities, the proceeds of which he used for his own benefit, according to a news release.

The complaint alleges violations of the registration and anti-fraud provisions of the Idaho Uniform Securities Act.

Ward made material misrepresentations by offering investors higher-than-market returns on so-called “insured certificates of deposit” that were neither FDIC insured nor issued by a financial institution, the lawsuit alleges. Ward also promoted the fictitious development of a senior housing center by a financial institution, and promoted the fictitious development of a senior housing center in northern Idaho, the lawsuit said.

The Department of Finance issued a “cease and desist” order against Ward and his company in June, but Ward continued his fund-raising efforts in violation of the order and Idaho securities laws, the department said.

The state seeks a court order permanently enjoining Ward from further violations of securities laws, and it seeks restitution for defrauded investors and civil penalties.

source: http://www.idahostatesman.com/2010/03/08/1109554/state-sues-idaho-insurance-agent.html