June 27, 2003
Sean Caine, 410-576-6357
SECURITIES DIVISION BARS ALLEGANY CO. MAN
General J. Joseph Curran, Jr. announced today that his Office's
Securities Division issued an order permanently barring Rodney L.
Hinkle, a resident of LaVale in Allegany County, Maryland, from
the securities and investment advisory business in Maryland, and
fining him and his companies, Money Systems, LLC and Energy Resources,
Inc. $100,000 each.
who was popular among clients for hosting all-expenses paid dinner
seminars at local hotels and restaurants a platform for his
investment sales pitches already was subject to a July 2002
order imposing a four-year bar from the securities and investment
advisory business based on his sales of cash transaction machines
Despite the earlier order, Hinkle again sold interests in CTMs.
In addition, he engaged in fraudulent sales of interests in his
own companies. Hinkle pooled that money in money market accounts
under his control and used subsequent investors' monies to pay promised
returns to earlier investors. Hinkle victimized Marylanders, Pennsylvanians
and West Virginians through these schemes. In at least one case,
Hinkle sold a widow who relied upon Hinkle to assist her in making
financial decisions an investment in Energy Resources, without disclosing
that he was the principal of that company. That same investor trusted
Hinkle to invest in excess of several hundred thousand dollars
the proceeds from her husband's life insurance policy at her husband's
death in other deals. The investor suffered 100 percent losses
on those investments.
maintains an office in LaVale, Maryland; he also resides in Jupiter,