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Article published Mar 29, 2003
McMaster investigates Carolina
Investors
Jeff Romig
Business
Writer
Attorney General Henry McMaster announced Friday that his
office has launched an investigation into Carolina Investors, its subsidiaries
and related companies.
The Anderson-based company owes its 8,000 customers
about $205 million, according to the Anderson Independent Mail.
McMaster's
office had been reviewing the situation since Monday, when Carolina Investors
suddenly closed its offices in the Upstate.
McMaster said that after
reviewing information provided to his office by almost 1,000 investors and
family members, along with a rapidly declining confidence in the company and
parent company Home Gold's future, he ordered an official
investigation.
"There are just too many unanswered questions surrounding
recent events with Carolina Investors and Home Gold," McMaster said. "As a
result I have determined that a thorough investigation is now
warranted."
Since closing its offices Monday, Carolina Investors has
yet
to make contact with all of its investors.
"Like everyone, I'm holding
out hope that someday investors may recover some of their money," McMaster said.
"In the meantime, we must move quickly to establish whether anything improper,
unethical or illegal was or was not done."
The attorney general said at this
early stage, it would be inappropriate to speculate on possible civil or
criminal violations that may or may not have occurred within Carolina
Investors.
McMaster also encouraged investors to continue submitting their
complaints and information in writing via mail, fax and Internet to the
securities division.
Carolina Investors offices could open as soon as the
first of next week.
Customers will then be able to meet with company
representatives and gain a clearer idea of when their money might come
back.
Jeff Romig can be reached at 562-7270 or
jeff.romig@shj.com.