Man busted in precious metal scam

Oct. 24, 2013 @ 12:59 PM

A 48-year-old man from Lexington was charged this week in what authorities are calling a precious metals investment scam.
Law enforcement agents with the N.C. Secretary of State Division of Securities charged Rondell Scott Hedrick, 48, with 27 felony counts. Investigators say Hedrick deceived multiple victims from around the country into sending him money. He claimed that he used the investments to buy gold overseas and then resell for large profits within a matter of days.
Hedrick used an Internet website to promote the scheme, saying he would triple what people invested with him.
The charges against Hedrick include 10 counts of securities fraud, five counts of obtaining property by false pretense, five counts of securities dealer registration violation, five counts of security registration violation and two counts of violation of a cease and desist order.
Hedrick wasn’t registered to sell financial securities, according to investigators.
“We always ask people to check before they invest,” Secretary of State Elaine Marshall said in announcing the charges Thursday. “In this case, checking first would have shown a corporation that had been dissolved and that neither the suspect nor his investment offering were registered to be doing this business. Plus, he and the company had already been issued a cease and desist order for pursuing this type of activity.”
The Lexington Police Department assisting in the case. Hedrick was placed in the Davidson County Jail under $150,000 secured bond, according to the Secretary of State’s office.
Anyone with questions about investment offerings or wanting to learn more about wise investing can check the Secretary of State Division of Securities website at sosnc.com or call 1-800-688-4507.