Old Security Financial Group Inc. of Spring was fined $100,000 for selling unregistered investments in a “mortgage note program” supposedly backed by commercial real estate.
The fine, which will be paid to the General Fund of the State of Texas, was assessed against Old Security, its owner and president, Donald Anthony MacKenzie, and Vice President Robert S. Davis Jr.
The Agreed Order, entered by Securities Commissioner John Morgan on Oct. 3, also prohibits the mortgage-note securities from being sold until they are registered or qualify for an exemption from registration.
MacKenzie and Davis violated the Texas Securities Act by offering the investments for sale while not registered as dealers and agents. The pair remains unregistered. Old Security also is not registered to sell securities in Texas.
Since 2001, MacKenzie has been named in other actions, including a state action by the Texas Department of Insurance and a lawsuit brought by a federal court-appointed receiver.