Charges filed against five individuals by State of Iowa Insurance Fraud Bureau for selling a registered security without being licensed in Iowa

Allamakee County authorities seeking information from other possible victims

Five individuals from Iowa and Wisconsin have had initial charges filed against them locally by the State of Iowa Insurance Fraud Bureau, and Allamakee County authorities not only want the public to be aware but also would like to hear from anyone who has been in contact with these individuals and possibly even provided money to them.
In complaints and affidavits filed in Allamakee County District Court Thursday, March 27, special investigators with the Iowa Insurance Fraud Bureau have accused those five individuals of Agent Registration Requirements and Exemptions in violation of Iowa Code registration requirements. The filed complaints state that “It is unlawful for an individual to transact business in this state as an agent unless the individual is registered under this chapter (of Iowa Code) or is exempt from registration.”
According to court documents, the five defendants are accused of selling what was “determined to be a registered security without being licensed in the State of Iowa,” which is a Class D Felony. Those five defendants are listed in those filed complaints as Stanley Pophal of Wausau, WI, and four siblings, Debra (Halvorson) Mink of Prairie du Chien, WI, David Halvorson of Galesville, WI, Gary Halvorson, Sr. of McGregor and Casey Halvorson of McGregor, with all of them having been determined to be acting as agents for a company named Bright Silver LLC.
“We had some individuals present themselves to some local folks here in Allamakee County with investment opportunities; we’re looking at, basically, selling a security without a license,” Allamakee County Attorney Anthony Gericke explained. “We have information that they have been active in not only Allamakee County but also five other counties, that we know of. Roughly two dozen people, totaling just slightly over $500,000 at this point.”
Following some initial information shared by an area resident regarding contact with the five individuals and the investment opportunity they were presenting, the Iowa Insurance Fraud Bureau was alerted by Allamakee County authorities, and undercover special investigators from that unit arranged a similar investment meeting. That February 1 meeting of this year, as well as further investigation since that meeting, has led to the initial charges being filed.
Continued investigation uncovered such activity by these five individuals in five other counties in Iowa, including Winneshiek, Clayton, Mitchell, Madison and Wapello Counties. With suspicion that the allegedly fraudulent activity has impacted many others, investigation in the case is continuing, and Allamakee County authorities are asking for any information local residents may have in regard to these five individuals and any proposed investment contact they have had with them.
“This in an ongoing investigation. If anyone does have some information, they should call the Allamakee County Sheriff’s Office (563-568-4521),” Gericke urged. “Our suspicion is there are more people (victims) than what we currently know of, obviously. If anybody knows these people, if you gave them money, we sure would like to hear about it. The (State of Iowa) fraud guys have their stuff on the securities violations, and we’re still actively pursuing exactly how much damage has been done. We don’t know yet, across the state. There are multiple agencies across multiple states looking at what’s been going on here.”
Gericke further explained what some of the presented investments have been, and the way they were presented. “One thing that was floated was emerald mines in Africa, and another thing was coffee futures in Colombia,” Gericke shared. “Their whole thing was to keep it quiet... this is only for a select few people... don’t share it. Unfortunately, some people gave them money. This thing is involved at the federal level. The FBI is aware.”
As outlined in the filed complaints, the February 1 meeting was “held to offer the sale of securities to several individuals present at the meeting.” At the meeting, those individuals received contracts determined to be promissory notes. Although Pophal claimed he was not selling securities, the filed complaints explain that Iowa Code section 502.102(28) states that a security can be defined as a note. None of those in attendance at the meeting were offered a prospectus, which may also be required by Iowa Code.
The filed complaints further explain that the four Halvorson siblings each took part in contacting individuals to see if they were interested in attending a Bright Silver LLC investment meeting, organizing the date, time and location of the meeting. Additionally, it was noted they all shared their own business experience with Bright Silver LLC and with Prophal, in addition to collecting money and providing contracts at the meeting. Prophal is listed as the owner of Bright Silver LLC and entered the meeting later to provide further investment details. None of those five individuals were discovered to be registered in the state of Iowa to sell securities.
Gericke wants anyone who has been impacted by these individuals to be assured that information shared will be used to help put an end to their fraudulent activity. “The basic premise is to get this information out there right now and put a kibosh on these people, just stop them, and put everybody on alert,” he explained. “I think that will drive more people to call us and inform us. We’re very curious to see, once word has spread and people see the photos, how many people have actually come into contact with these people. I think the $500,000 is just the tip of the iceberg. We shall see.”
As of press deadline for the April 2 edition of The Standard, Gericke advised that apprehension of the five individuals was currently in progress by authorities.

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