Kenneth Burnt, 69, CEO and CFO of Perimeter Wealth Financial Services, and CFO of KSB Financial, offered guaranteed returns on a covered-call equities trading program - all very impressive, until one "looked under the hood."  Both companies operated as unregistered investment advisers, and Burnt had been the sole advisory employee of both.  Further, the trading program Burnt sold to investors was an unregistered offering of securities.

From at least September 2009 through December 2010, this resident of Buford, GA, raised some $4.5 million from more than 20 investors through the unregistered offering of securities in interests in a covered-call equities trading program.  Investors entered into written agreements with Perimeter Wealth and KSB, which Burnt executed.  In these documents, Burnt represented that 100% of an investor’s funds would be placed into a securities account “to be used to purchase high quality undervalued and income equities,” with the objective of generating "revenues from the trading of covered-calls." 

  Burnt, through Perimeter Wealth and KSB, further guaranteed specified annual returns, ranging from 8% to 12%, regardless of actual trading performance, and further guaranteed all investors against any loss to their investment principal.  For his efforts, Burnt would be compensated based upon investment performance in an amount equal to the investor returns generated above the minimum guaranteed annual returns.  In all cases, “the client is paid first.” 

Burnt instead withdrew investor funds for personal use prior to their earning the minimum guaranteed returns. He was barred from the industry and he is subject to: (a) any disgorgement ordered against the Respondent; (b) any arbitration award related to the conduct that served as the basis for the Commission order; (c) any SRO arbitration award to a customer; and (d) any restitution order by an SRO.  [SEC Investment Adviser Act Release IA-3255; 7/29/11])   [unregistered offering of securities in interests in a covered-call equities trading program]