Bismarck, ND - Securities Commissioner Karen Tyler announced today that more than $70,000 was recovered and returned to six North Dakota resident investors who had purchased securities sold illegally by I2U, Inc., a Bismarck based company, and its founder, Harold Richard (Rick) Mladek.
The funds were recovered through legal and administrative proceedings that were initiated in the fall of 2005.
According to the findings of the Securities Department, Mladek provided false information to potential investors about support from government officials, and family-owned factories in Asia that would be used to manufacture the company's products. Additionally, the investments were not registered with the Securities Department, and Mladek was not properly registered to sell the investments.
Harold Richard (Rick) Mladek was the principle founder of I2U, Inc., a North Dakota company formed for the apparent purpose of developing assistive technology for the visually impaired. Mr. Mladek diverted a significant portion of the invested funds to his personal use, including a down payment on the purchase of his Bismarck home.
Mr. Mladek chose to exploit the desire these North Dakota residents held for helping others, and he used false and misleading information to influence their investment decisions Tyler said.