The Colorado Division of Securities has revoked a Greeley stockbroker’s license for allegedly violating the securities registration provisions of the Colorado Securities Act.
John B. Guyette is alleged to have offered and sold securities in the form of notes by Medical Provider Funding Crop., a wholly owned subsidiary of Medical Capital Holdings, a medical receivables financing company.
The division said that Guyette sold these securities to a number of investors who did not have a substantial pre-existing relationship with him – meaning that he was not exempt from state registration requirements.
The investigation into the sale of Medical Capital securities continues, said Fred Joesph, commissioner of the division.
“This was a private offering under federal law, so-called Regulation D, meaning the division was pre-empted from oversight of the offering under federal law,” he said. “But licensed stockbrokers in Colorado were still under a duty to properly research this offering and ensure that the investments were suitable for each investor. If we discover individuals or firms that failed in this regard, we will take appropriate action.”