Coakley obtains injunction against financial adviser

Drew Smith Sep. 26, 2008, 11:35am

Martha Coakley (D)

BOSTON (Legal Newsline) -- Massachusetts Attorney General Martha Coakley has obtained a preliminary injunction against a Hingham-based company charged with using deceptive business practices.

College Advisors Group (CAG) is a business operated by Kirk Brown that advises parents on how to save for their children's college education.

The firm has been prohibited from operating under its current business model after the company was sued in February 2008 for such things as violating banking laws and insurance regulations, misleading consumers and selling unsuitable investments.

"Consumers went to Mr. Brown seeking guidance on how to pay for college for their children and instead received misleading advice leaving many families facing serious financial harm," Coakley said. "We are pleased with the Court's Order and will continue to litigate this case to ensure no one else is deceived by these misleading practices."

According to the suit, CAG used misleading charts and reports, displayed false information on its Web site, overcharged customers and accepted kickbacks for business referrals related to mortgage financing. The company also knowingly sold customers unsuitable investment they could not afford.

The injunction against CAG was signed earlier this week by Judge Thomas Connolly in the Suffolk Superior Court and stipulates that the company is required to give potential customers notice of the Coakley's pending enforcement action.

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