N.D. Insurance Agent Ordered to Stop Selling Promissory Notes

September 18, 2006

A North Dakota insurance agent has been ordered to stop selling promissory notes or other securities after he failed to repay investors, the state securities commissioner says.

Securities Commissioner Karen Tyler issued the order to David A. Skjerven, 59, earlier this month. He lives in Arizona and could not immediately be reached for comment, according to the Associated Press story.

Skjerven issued promissory notes valued at more than $2 million to residents in North Dakota, Tyler said.

“Many of the notes are outstanding and many investors have not been repaid as required by terms of the investment,” she said.

The Securities Department is investigating a number of complaints, most from the Fargo area, related to the sale of promissory notes issued by Skjerven or companies affiliated with him, Tyler said.

Skjerven violated a 2005 consent order that barred him from selling unregistered securities or from selling any securities while he was not registered, Tyler said.

Court records show civil judgments and tax claims have been filed in recent years against Skjerven in Cass County and in Clay and Becker counties in Minnesota.

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