TDCI Cites Hendersonville-based Corporations, Principals for Securities Fraud
NASHVILLE –The Tennessee Department of Commerce & Insurance (TDCI) announces disciplinary action against two healthcare software corporations and their operators found in violation of the state’s securities law.
Roger D. Finchum, Sr. and Barry E. Mitchell, principals of Hendersonville-based corporations Chartered Medical, Inc. (formerly Innova One, Inc.) and Patients Mutual, Inc., were penalized for engaging in securities fraud, selling unregistered securities, and transacting securities business without being registered.
“The Department is committed to protecting Tennessee consumers from investment fraud,” said TDCI Assistant Commissioner for Securities Frank Borger-Gilligan. “We will continue to identify and investigate those found breaking the state’s security laws. We urge consumers to contact us if they believe they have been the victim of fraud.”
Finchum and Mitchell violated state law by failing to register with the Tennessee Securities Division to engage in the offering and selling of securities from or in Tennessee, and by neglecting to properly register the investments they offered. Finchum and Mitchell also employed fraudulent schemes by promising large rates of returns and full repayment of principal to individuals in order to secure additional investment funds and by never repaying the principal investments to individuals as promised in writing. In addition, Finchum engaged in fraud by misappropriating $66,000 in entrusted funds given to him by an investor in June of 2011.
An Initial Order, finalized September 12, 2016, imposes $100,000 in civil penalties against Finchum, Mitchell, Chartered Medical, and Patients Mutual; orders that they, and any persons aiding them, cease and desist all further activities in violation of the Tennessee Securities Act; and permanently bars them from conducting securities transactions in the State of Tennessee.
The order can be found on the TDCI website. Tennesseans are encouraged to visit the Department’s website where they can inspect disciplinary actions and verify licenses of securities and insurance professionals.
If you suspect that you might be a victim of securities or insurance fraud, or if you would like to file a complaint or speak with an investigator, please contact the Tennessee Securities Division – Financial
Services Investigations Unit at (615) 741-5900. To file a complaint online, visit https://tn.gov/commerce/article/securities-file-a-complaint.