Shawn Messner (CRD#: 2759697), a broker in Minnetonka, Minnesota, is currently involved in a pending customer dispute involving shares of OrangeHook, according to his BrokerCheck record accessed on February 24, 2020. The client is seeking $800,000 in damages.
What allegedly happened to lead to this dispute? An individual invested nearly $1 million in OrangeHook, a startup specializing in high-tech student ID cards and other identity solutions. The individual now alleges that he was defrauded and that the company is insolvent.
According to Shawn Messner’s BrokerCheck report, this individual alleges that OrangeHook “devised this investment scam with the help of Northland,” Shawn Messner’s brokerage firm at the time. The client alleges that OrangeHook and Northland conspired to conceal the true financial condition of OrangeHook; far from being “highly profitable,” as the client claims he was originally told, the client alleges that the company is failing. The client alleges that Northland convinced him to invest $150,000 in OrangeHook in 2016 in exchange for licensing agreements for OrangeHook’s technology. As the company struggled, the client inquired as to its financial status, but Northland repeatedly assuaged his fears. The client claims that Steve Dragos, a broker at Northland, told them he would answer their questions about OrangeHook, but instead asked them to invest more money. OrangeHook allegedly solicited the client “to engage in negotiations to enter into a licensing agreement to, among other things, assist certain retailers with the tracking and sale of cannabis products in Colorado.”
The client alleges that OrangeHook and Northland misrepresented the financial condition of OrangeHook, as well as its software permissions, to induce them to enter into this licensing agreement. The client ultimately paid OrangeHook $750,000 in licensing fees, which the client alleges OrangeHook actually used to pay back its loan obligations and pay officer salaries. The client maintains that they were unaware that OrangeHook was “insolvent, delinquent on its tax obligations and facing a number of outstanding lawsuits and judgments.” The client further alleges that, when he refused to provide additional funding to OrangeHook, the company ordered him to stop marketing OrangeHook’s technologies to the cannabis industry (which was the original purpose of the licensing agreement). The client is seeking $750,000 in damages; the dispute is pending.
Shawn Messner has also worked for the following broker-dealers:
- Northland Securities, Inc. (CRD#: 40258)
- Delphi Financial Corp. (CRD#: 25868)
- Piper Jaffray & Co. (CRD#: 665)
- Investment Management & Research, Inc. (CRD#: 6694)
- Dean Witter Reynolds Inc. (CRD#: 7556)
If Shawn Messner was your broker and you have concerns about your investments, don’t hesitate to contact the securities attorneys of Fitapelli Kurta to learn about your options for recovery. Call (877) 238-4175 or email email@example.com for your free case consultation.