Missouri Secretary of State Robin Carnahan's office has ordered Stephen Coleman and his investment adviser firms, Chicken Little Fund Group and Daedalus Capital, to pay $38,000 in penalties for alleged securities fraud and other violations, the St. Louis Business Journal reports. Missouri regulators first brought forth the allegations in the fall of 2007 (see The MFWire, 11/05/07).

According to regulators, Coleman told clients to purchase stock in his companies, though those securities were not suitable.

Carnahan's office issued enforcement orders against Coleman in October 2007, alleging that he used investors' money for personal expenses and to pay off a $100,000 personal tax lien. Coleman initially requested a hearing to dispute the claims, but eventually withdrew his request.

The Chicken Little Fund Group is the adviser to the Chicken Little Growth Fund. 

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