A Colorado man has been permanently barred from selling securities in Tennessee after he was found to be in violation of state laws, selling investments without properly registering with the Tennessee Department of Commerce & Insurance Securities Division.

Steven S. Boulter paid a $12,277.75 civil penalty and has been permanently barred from selling securities in Tennessee.

Boulter found investors who gave money to Hixson resident Harry Thompson and his company Chattaco between 2012 through 2014 to help purchase new leases on natural gas wells in Magoffin County, KY.

Chattaco’s investors were promised large profits in exchange for their financial backing but never received the rate of return they were promised nor any repayment for their principal investment.

While representing Chattaco, Boulter was never registered with TDCI’s Securities Division, which is a violation of state law.

“In Tennessee, it is unlawful for any person to transact business from or in this state as a broker-dealer, agent, investment advisor or investment advisor representative unless that person is properly registered as such,” said TDCI Commissioner Julie Mix McPeak. “Before making an investment, I urge Tennessee consumers to contact our Securities Division team first and verify that their broker or adviser is registered.”

The $12,277.75 civil penalty equals the total amount Boulter received in commissions and royalties from Chattaco.

The TDIC is seeking sanctions against both Thompson and Chattaco. The Administrative Judge will issue an Initial Order in furtherance of the hearing, expected sometime this fall.