Secretary of State Jason Kander Thursday ordered Daniel Keith Steele and his wife Judy Dianne Steele, of Rolla, to stop conducting fraudulent business after Kander’s office found the Steeles diverted funds for personal use.
Operating through companies such as Champion Management International, LLC, and Oracle Forex Fund, LP, Daniel Steele convinced at least 24 investors to give him more than $1.8 million to invest in foreign currencies.
He told his investors that he would pool their money into a fund that would trade foreign currencies, but instead he used a portion of the funds for personal expenses.
The cease and desist order filed by the securities division of Kander’s office alleges that Daniel Steele used investor funds for purchases from Acura and Chevrolet dealerships totaling $98,000, as well as payments to a construction company and prior investors.
The order also alleges Daniel Steele transferred money to bank accounts controlled by his wife and himself.
According to the petition, Daniel Steele came into contact with clients through online forex training courses and by word of mouth, he claimed to have special knowledge and expertise in forex trading.
The petition further alleges that he failed to inform investors of many important facts, including that at least some of their investment funds would be spent on his and his wife’s personal expenses, that returns would be funded with investments from other clients, and that he had a pre-existing $190,000 tax lien to the Department of Justice.
In addition, the petition alleges that Daniel Steele failed to register the interests in this fund, as required by law.
“I urge all Missourians to call my office before investing their hard-earned savings, especially when dealing with complicated or risky investments,” Kander said. “If the person offering you an investment or the investment itself is not registered with my office, there’s a chance it could be a scam.”
Kander is asking anyone who has done business with the Steeles to contact his office at 1-800-721-7996.