Hoss Mortgage Investors Updates
For the latest on the Hoss Mortgage Investors and Todd Allan Hoss case visit our Hoss Mortgage Investors News and Updates webpage.
Thursday, September 10, 2009
Michael E. Stevenson, Director of Securities
PH (360) 902-8797 email@example.com
Jeremy Lushene, Communications & Webmaster
PH (360) 902-0506 firstname.lastname@example.org
FOR IMMEDIATE RELEASE:
State Suspends Securities License Of Seattle Investment Loan Broker And Seeks Fine Of $100,000
Hoss Mortgage Investors, Inc. and President Todd Allan Hoss accused of failing to honor financial guarantees made to numerous investors
OLYMPIA – The Washington State Department of Financial Institutions Securities Division has suspended the securities broker-dealer registration of Hoss Mortgage Investors, Inc. (HMI) and the securities salesperson registration of Todd Allan Hoss (Hoss), the president and sole shareholder of HMI. The Securities Division is also seeking to impose a $100,000 fine against Hoss.
The licenses were suspended on Aug. 26, 2009, when the Securities Division entered a Superseding Statement of Charges and Order against HMI and Hoss.
HMI is in the business of selling their borrowers’ loans to investors. Typically, HMI would receive a deed of trust from a borrower to secure the loan and then would assign all or a portion of the deed of trust to the investor to provide security for the investment. Financial statements filed with the Securities Division early in the year raised concerns with the management of HMI.
HMI and Hoss are each accused of violating the registration provisions of the Securities Act of Washington by offering and selling unregistered investment loan securities and investments in promissory notes and deeds of trust and investor repayment guarantees.
The Securities Division is charging HMI and Hoss with violating state securities anti-fraud and registration laws, alleging that HMI and Hoss:
- Misrepresented to certain investors that their investments would be protected by security interests without securing the investments in real estate;
- Misrepresented to certain investors that their investments would be protected by a first position deed of trust when the investors received a lower priority real property interest;
- Sold the same borrower loan to two different investors;
Failed to disclose material facts, such as:
- the risks of the investments;
- the intended use of the investment proceeds;
- the identity and other information about the borrowers;
- information about the properties that were purported to secure the investments; and
- financial information about HMI and its ability to honor guarantees made to investors; and
- Sold investments that required registration
HMI has also failed to file its most recent quarterly financial statements with the Securities Division as required by state regulations.
“The suspension of a licensee’s registration is a serious matter”, said DFI Director of Securities Michael Stevenson. “Along with misrepresenting the investment, HMI has failed to make monthly interest payments and honor financial guarantees made to numerous investors. By immediately suspending the licenses we are helping to protect Washington investors.”
HMI and Hoss are entitled to a hearing on the allegations.
A copy of the charges against HMI and Hoss can be found at: http://www.dfi.wa.gov/sd/orders/s-09-043-09-to02.pdf.
About DFI’s Division of Securities
www.dfi.wa.gov/sd ▪ 360.902.8760 ▪ 877.RINGDFI (746.4334)
The Division of Securities regulates securities investments, franchises, business opportunities, and off-exchange commodities sold in Washington and the firms and individuals that sell these products or provide investment advice. The Division handles complaints, conducts investigations, and takes appropriate enforcement actions to protect investors and combat fraud.
www.dfi.wa.gov ▪ 360.902-8700 ▪ 877.746-4334
The Washington State Department of Financial Institutions regulates a variety of financial service providers such as banks, credit unions, mortgage brokers, consumer loan companies, payday lenders and securities brokers and dealers. The department has won numerous awards for its financial literacy and outreach programs developed to protect consumers from financial fraud. In addition to posting information about licensees and administrative actions, the DFI’s Web site features consumer tips on a variety of financial fraud-related topics. DFI also hosts a financial education blog http://finlit.blogspot.com, a financial education Twitter page http://twitter.com/fined4all, a financial education YouTube page (where we've compiled a host of financial education videos from a variety of reliable resources) http://www.youtube.com/wadfi, a consumers Twitter page http://twitter.com/dficonsumers and a financial education calendar for Washington State http://dfi.wa.gov/financial-education/calendar.htm.