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Wind turbine maker issued cease and desist order in Arkansas

Arkansas' Securities Commissioner has filed a cease and desist order against a Texas-based company that makes turbines for wind farms. (MGN Online)

LITTLE ROCK, Ark. (AP) - Arkansas' Securities Commissioner has filed a cease and desist order against a Texas-based company that makes turbines for wind farms.

The commission said Thursday that Dragonfly Industries of Frisco, Texas, and company CEO Jody Davis committed securities fraud.

An attorney for Davis denies the allegation.

The securities commission says Dragonfly sold three investment contracts that were not registered; that Davis failed to tell investors he was convicted in 2009 in Oklahoma of wire fraud and money laundering; and that he told investors a $10 million federal grant was imminent when the U.S. Department of Energy had previously said the project was unlikely to receive the grant.

Davis attorney Cole Fegan told KHOG that the company never misled investors and will ask for a formal hearing to clear itself of the allegations.

Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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