State Auditor files against wife of man accused of securities fraud
The Montana State Auditor’s Office has filed for a temporary order to cease and desist against the wife of a Bonners Ferry man who has been accused of securities fraud, conducting unlicensed financial transactions and exploitation of an older person.
The investigation is ongoing, and being carried out by Montana State Auditor Matt Rosendale’s office. Special Lincoln County Attorney for the State of Montana Brett Olin — who is prosecuting the case — is a member of the state auditor’s office, but to prosecute in Lincoln County, had to be appointed as a special county attorney.
According to the temporary order to cease and desist from Deputy State Auditor Kristin Hansen, Ginny Hartman — the wife of Kip Hartman — has been ordered by the auditor’s office to cease “from engaging in further acts or activity wherein the respondent acts in violation of the insurance code.”
Ginny Hartman, who is licensed in financial transactions, has been accused of allowing her husband, Kip Hartman, to sell financial services under her license. She is accused of signing off on the transactions he was unable to sign off on due to his lack of license.
The order specifies that, “This includes but is not limited to facilitating or otherwise aiding in the negotiation, solicitation or sale of insurance by an unlicensed individual.”
Such activities would already be illegal for Ginny Hartman to engage in. There is no mention in court documents of any other restrictions on her ability to continue to operate in her licensed capacities.
However, according to the order, Ginny Hartman could face up to $25,000 in fines for each instance if she is found in violation of the order.
In a separate notice of proposed agency action and opportunity for hearing, signed by Montana Commissioner of Securities and Insurance attorney Jannell Williams, it is stated that Kip Hartman has not been licensed to sell insurance in Montana since 2010.
According to allegations laid out in the notice, Ginny Hartman told investigators that she had met and explained financial products with at least one individual who claims Kip Hartman alone sold him the products.
The allegations outline an additional seven incidents in which the Montana Commissioner of Securities and Insurance maintains Kip Hartman sold financial products to couples or individuals, using Ginny Hartman’s license to complete the transactions.
In the notice, Williams states that the commissioner’s office also seeks imposition of “a fine not to exceed the maximum allowable by law for each identifiable violation of code,” revocation of Ginny Hartman’s non resident insurance producer license and “such other relief as the commissioner deems appropriate.”