Connexus Corporation (CNXS)

[VeronicaFox]

CONRAD HUSS FINED AND DISCIPLINED BY FINRA

Huss consented to the sanctions and to the entry of findings that he negligently misrepresented material facts in connection with the solicitation and sale of $1.4 million worth of promissory notes issued in a private offering to customers in contravention of Section 17(a)(2) of the Securities Act of 1933. The findings stated the notes were issued by a real estate development company that defaulted under the notes and failed to pay customers the principal due and owing under the promissory notes, resulting in significant losses to many customers.

Huss negligently misrepresented to customers that the notes were fully secured and provided investors with documents in which the company falsely stated that the notes were secured by the sale of certain historic rehabilitation tax credits. Huss used these materials in connection with the sale of the notes to prospective investors, negligently disregarding information indicating that the company’s statements were false and that in reality, there was not any collateral for the notes.