Bismarck, ND - North Dakota Securities Commissioner Karen Tyler has ordered Robert H. Medhus of Fargo, ND, to cease and desist from further violations of the North Dakota Securities Act or rules in connection with the offer and/or sale of securities in this state. The Commissioner alleges that Medus directly and indirectly employed devices, schemes and artifices to defraud a North Dakota investor. Respondent Medhus issued a forged 1099-R pertaining to the investor's retirement account, indicating a mandatory distribution to the investor from the account of $17,100 for tax year 2011. Respondent Medhus then attempted to pay the distribution with a $17,100 check drawn on his business account. There were insufficient funds to cover the check. Upon request by the North Dakota investor for liquidation of the retirement plan assets, Respondent Medhus issued the investor a check drawn on his business account in the amount of $319,125. There were insufficient funds to cover the check. Medhus has been unable to account for the investor’s assets. The North Dakota Securities Department and Bureau of Criminal Investigation executed a search of Medhus's home and office in Fargo and West Fargo on June 19, 2012. In January of this year, Commissioner Tyler revoked the registration of Associated Financial Services Inc., the broker-dealer owned by Medhus, thereby also revoking his securities agent registration. Neither Associated Financial Services nor Medhus can legally transact securities business as a broker-dealer or agent in the state of North Dakota. For more information contact the North Dakota Securities Department at 1-800-297-5124 or (701) 328-2910.
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