State Senator Thom Goolsby and business associate James Upham have been ordered to stop offering financial services in the state, according to an order issued by the North Carolina Secretary of State's Office.
The final consent order states Goolsby and Upham, operating as Empowered Investor Incorporated, marketed an investment strategy called a "10-20-50 Plan," but did not frequently follow it.
According to a release from the state, the plan was supposed to invest client money in a way where investments that lost more than 10% value would be sold to prevent future loss, investments earning more than 20 percent would be sold to collect money and no more than half of the accounts would be invested in securities at one time.
Since the secretary of state's office maintains the company didn't follow the plan, clients lost more money than if the investments would have been sold once they started losing 10%. Investigators claim the clients were not told their money was being invested differently than advertised.
The secretary of state's office has revoked investment adviser registrations for Upham, Goolsby and the company Empowered Investor, while requiring them to wait ten years before trying to register again. Goolsby and Upham hosted a radio show on financial investments in the Wilmington area at one time.
According to the secretary of state's office website, the business was dissolved in March of this year.
When reached today, Goolsby said he had no comment on the matter, but did offer this statement from his legal counsel.
"This is a business that was ultimately not a success. Thom Goolsby dedicated a great deal of energy and his own money in this venture. He never received even one paycheck. However, he worked hard to see to it that all the debts of the corporation were paid and investors compensated. That's just the kind of person he is," Melissa Gott said. "Thom Goolsby was never a registered investment advisor. For many months he co-hosted a radio show where he talked about trading in the stock market. A lawsuit was filed last year and quickly dismissed. The parties later amicably resolved all matters."
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