Opinion ID: 163281
Heading Depth: 3
Heading Rank: 2

Heading: The Nevada Investigation

Text: In early 1994, Nevada began investigating VesCor’s activities. Nevada concluded that the Accrual Notes, Monthly Notes, and MLP Interests were “securities.” Nevada and VesCor entered into a settlement agreement, requiring VesCor to make rescission offers to current holders of the VesCor investment 1 (...continued) subject to Commission oversight. General Bond & Share Co. v. SEC, 39 F.3d 1451, 1453 (10th Cir. 1994). -2- products in the state of Nevada. In conjunction with the rescission offers, VesCor planned to simultaneously offer investors the opportunity to reinvest in the Accrual Notes, Monthly Notes, and MLP Interests. VesCor also decided to send the simultaneous rescissionreinvestment offers to investors in other states. In late 1994, Southwick decided that these transactions should be handled by a broker-dealer registered with the Commission. Accordingly, Southwick encouraged Kunz to leave VesCor to form his own brokerage firm.