Colorado Securities Commissioner Fred Joseph has entered a final cease and desist order against The iPractice Group Inc. and its CEO Ting N. Chang; chief operating officer, Michael Jason Morgan, and one of its sales agents, Colin Purcell. All are from Nashville, Tenn.
The Division of Securities stated that iPractice sought Colorado investors to develop their information technology business through the offering of “an innovative, all-inclusive turn-key electronic health record package.”
At least one Colorado investor was cold-called and solicited to invest in a stock offering by iPractice. The investor was told that while the offering was selling at $2 per share, it would likely sell for $20 per share when the company went public, according to the Securities Division report.
iPractice failed to register its security offerings and violated the law by cold-calling investors.
“If you are promised high, guaranteed profits with little risk, and told that time is of the essence, then be wary that the investment may be too good to be true,” Joseph said, warning investors in Colorado and recommending they verify that securities have been properly registered with the state before purchasing them.
The company and its executives have been ordered to immediately and permanently cease and desist offering or selling unregistered securities in Colorado.
A view the order, visit the Department of Regulatory Agencies website.