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For Immediate Release
November 18, 2003
Contact: Sean Caine, 410-576-6357
scaine@oag.state.md.us

CURRAN SHUTS DOWN INVESTMENT SCHEME
OPERATING FROM TOWSON AND CAMBRIDGE

Attorney General J. Joseph Curran, Jr., announced today that his office's Securities Division issued a Summary Order to Cease and Desist against Nexstar Communications, LLC of Towson and POSA, LLC of Cambridge. The order charges the companies with violating the Maryland Securities Act by selling investment opportunities in "point of sale" distribution terminals designed to process credit cards and debit cards at merchant locations. According to the order, Nexstar and POSA must immediately cease and desist selling unregistered securities, employing unregistered securities brokers or investment advisers, or continuing the investment scheme in or from Maryland.

The order alleges that Nexstar promised investors a fixed 12 percent return if they purchased the point of sale terminals from Nexstar and then leased the terminals back to POSA, LLC. POSA promised to service the terminals and collect fees from merchants. The order alleges that Nexstar used an Internet website and sales agents to solicit investors throughout the country. According to the order, Nexstar misrepresented the nature of the investment, misrepresented the affiliation between Nexstar and POSA; misrepresented the risks of the investment; and failed to disclose the identity of the owners and managers of the operation.

"By issuing a summary order, we can put an immediate stop to these violations and ensure that additional investors are not harmed by this investment scheme," Attorney General Curran said. “This action shows that my office will not tolerate unlawful securities sold in or from Maryland, and we will act swiftly to stop fraudulent schemes emanating from Maryland.”

Curran noted that his Securities Division brought this action even though Nexstar represented that it had not yet sold the investments in Maryland.

In a related action, the Pennsylvania Securities Commission announced today that it issued an order against Nexstar and POSA, along with two other respondents, Robert Hoffman of New York and James Bowling of Texas alleging violations of the Pennsylvania Securities Act.

Curran emphasized that the Securities Division's investigation of this matter is continuing and urges anyone who invested funds with Nexstar or POSA or who has information concerning their investment programs, call the Securities Division of his office at 410-576-7042.

Investors are reminded to call the Securities Division at 410-576-6360 before they invest to find out whether their investment adviser, broker and securities are registered. Even when an investment program looks reasonable, and friends and family trust the promoter, it's better to take a few minutes to verify the status of the promoters and the investment.

This case was investigated by the Securities Division of the Maryland Attorney General's Office with cooperation from the Pennsylvania Securities Commission.

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