State officials continue investigating First Americans Insurance Service.

The Department of Banking's Bureau of Securities is investigating whether the agency violated the Securities Act of Nebraska by not registering promissory notes.

They did not register those notes, but sometimes there are exemptions.

Also, they're trying to find out if proper information was given to investors.

Meanwhile, agency heads and their lawyer met in Grand Island Friday to form a strategy to recoup around $105 million in losses.

First Americans' lawyer said it's a case of borrowing that got out of control.

"The problems that are being looked into now arise from loan transactions entered into by the company to provide capital for the company, and over the years those loan obligations have grown and finally to the point where the company just doesn't have the capacity to service the obligations," said lawyer Richard Craig.

Those obligations include the $425,000 Genoa farmer Richard Strnad invested.

Strnad said he received this letter shortly after Christmas, saying the agency was suspending interest payments.

"There are some that said they were misled and there are others who would say, you know, we knew it was high risk and we got great returns. It was wonderful while it lasted," said Craig.

Now, Craig says, First Americans has begun to work on a strategy to recoup those losses. There are several options.

"A sale is one, as an example. A recapitalization is another. There are a number of affiliated businesses and perhaps some combination of those affiliated businesses and their values," said Craig. "Those are all the kinds of things that we're exploring."

But will investors get their money back?

"It's realistic that they will see money back," said Craig. "I think it's unrealistic for anyone to think they're going to, that $100 million is going to get generated. That is just not in the cards."

Craig said it's too early to tell just how much investors will get back.

Some major creditors are owed more than $5 million.

Craig said, as far as he knows, the Native American tribes that are insured have not being affected.

He said, that's because First Americans works with insurance companies, which are all running normally.