Company told to stop selling exotic trees
June 26th, 2009 | by admin |Colorado securities regulators have warned a Costa Rican company to stop peddling exotic trees over the Internet to Colorado investors interested in reforesting portions of the Central American country.
The state on Thursday issued a cease-and-desist order against Finca Leola, its manager Fred Morgan of Alajuela, Costa Rica, and Boulder salesman Gregory Fitzpatrick.
According to the state’s allegation, the company was improperly seeking investors over the Internet to buy mahogany and teakwood trees.
The pitch: Investors were told they would have title to the trees planted in the country until they are harvested over a period of 12 to 25 years. They are promised an annual return in addition to ownership of a “socially responsible” investment.
