Washington State Department of Financial Institutions

2002 and Earlier Administrative Orders

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Bailine Scandinavia A/S; Lars Christensen; Lisa Cox; their agents and employees, Respondents -- S-02-381-02-CO01 -- Consent Order

On December 16, 2002 the Securities Division entered into Consent Order S-02-381-02-CO01 with Bailine Scandinavia A/S, Lars Christensen and Lisa Cox for alleged violations of the Franchise Act’s registration and disclosure provisions.  Bailine is in the business of promoting the concept of improving women’s health, beauty and self-image through figure-shaping and weight reduction.  Bailine agreed not to violate the Franchise Act further and will make a rescission offer to all franchisees in the State of Washington.


Cooley Enterprises; Brian Cooley; Kathy Cooley; their agents and employees, Respondents -- S–02-357-02-TO01 – Summary Order to Cease and Desist

On December 16, 2002 the Securities Division entered Summary Order to Cease and Desist S-02-357-02-TO01 against Cooley Enterprises, Brian and Kathy Cooley for alleged violations of the Business Opportunity Fraud Act’s registration, disclosure and antifraud provisions.  Cooley Enterprises offers an in-home envelope stuffing opportunity.  Purchasers pay a $25 “deposit” for training materials.  The materials instruct the purchaser to place newspaper advertisements in various newspapers, set up a toll-free telephone number and then send the callers the same materials that the purchaser received.  The caller sends the purchaser half of the “deposit” and retains the other half.  Purchasers earn money by further encouraging others to become purchasers, thereby setting up a pyramid scheme.


Electronic Billing Systems, Inc.; Ronald Tupps; Robert Ash; their agents and employees, Respondents – S-02-329-02-FO01 – Final Order to Cease and Desist

On October 28, 2002 the Securities Division entered Summary Order to Cease and Desist SDO-87-02 against Electronic Billing Systems, Ronald Tupps and Robert Ash for alleged violations of the Business Opportunity Fraud Act registration, disclosure and antifraud provisions.  Electronic Billing Systems offers an opportunity to purchase a package that will allow a purchaser to begin an in-home medical and dental billing business.  The package includes a certification program, training manuals and videos and lists of doctors and dentists who are in need of these services.  Electronic Billing Systems further offers a 21-day refund policy.  On December 2, 2002, the Securities Division entered Final Order S-02-329-02-FO01.  Robert Ash submitted a written statement waiving his right to a hearing.  Electronic Billing Systems and Ronald Tupps failed to respond to the Summary Order within 20 days.


Espresso Italia Marketing, Inc.; Shadd Vickery; Robert Ashcroft; Whitney Banks; their agents and employees, Respondents - S-02-328-02-FO01 – Final Order to Cease and Desist

On October 28, 2002, the Securities Division entered a Summary Order to Cease and Desist and Revoking Registration, SDO-86-02, against Espresso Italia Marketing, Inc. and its President, Shadd Vickery, for alleged violations of the Business Opportunity Fraud Act registration, disclosure and antifraud provisions.  Espresso Italia offers an opportunity to purchase espresso equipment and locating services.  Espresso Italia was registered as a Business Opportunity with the State of Washington.  This registration has been suspended.


James B. Goodrow, Respondent – S-02-300-02-CO01 Consent Order and Order Vacating SDO-100-02

On December 5, 2002, the Securities Division entered a Consent Order against James B. Goodrow.  The Division had entered a Statement of Charges against Goodrow, an Anacortes resident employed by American Express Financial Advisors, Inc. and IDS Life Insurance Company, alleging he made unauthorized transactions in the account of an elderly investor.  The unauthorized transactions resulted in the surrender of the investor’s fixed annuities, which led to substantial surrender charges.  Mr. Goodrow’s securities salesperson and investment advisor representative licenses were suspended for a period of five days.  Mr. Goodrow also reimbursed the Securities Division $1,000 for its investigative costs, and paid a $1,500 fine.


Brock Contracting and David Creagh Brock, Jr. - SDO-105-02 -- Consent Order and Order Vacating SDO-093-02 as to Brock Contracting and David Creagh Brock, Jr.

Brock Contracting was a timber and logging company located in Colville, Washington.  The Securities Division alleged that Brock Contracting and David Creagh Brock, Jr. violated the registration and anti-fraud provisions of the Washington Securities Act when offering and selling approximately $750,000 worth of investments to nine investors.  On December 21, 2002, the Securities Division entered into a Consent Order with Brock Contracting and Brock, who neither admitted nor denied any violations of the Washington Securities Act.  However, Brock Contracting and Brock each agreed to cease and desist from any further violations of the Securities Act.  In addition, Brock paid $2,500 to the Securities Division for reimbursement of investigative costs.

Grout Doctor Franchising Co. of America, Inc., Barry F. Baruh, their employees and agents, Respondents – SDO-104-02 – Consent Order

On December 16, 2002, the Securities Division entered a Consent Order with Grout Doctor Franchising Co. of America, Inc., and its President, Barry F. Baruh in settlement of alleged violations of the registration and disclosure document provisions of the Franchise Investment Protection Act.  Grout Doctor Franchising Co. of America, Inc. is in the business of granting franchises for the performance of grout cleaning and restoration services.  The company and its president agreed to comply with the registration and disclosure document requirements in the future.  The company is to disclose the existence and contents of the order in any franchise disclosure document and to agents and employees, to refund $2,500 to the Washington purchaser, and reimburse the Division $500 for its costs of investigation.


Richard Thomas Zieske; Grace E-Dat, Inc.; Grace E-Dat02, LP and Grace Capital Investments LLC, Respondents – SDO-103-02 – Amended Summary Order to Cease and Desist and Notice of Intent to Impose a Fine

On December 2, 2002, the Securities Division entered an Amended Order to Cease and Desist and Notice of Intent to Impose Fine against Richard Zieske, who currently resides in Vancouver, Washington.  Zieske allegedly offered and sold more than $1.7 million worth of stock, limited partnership interests and limited liability company interests to approximately 100 investors, most of whom are Washington residents.  Zieske was supposed to use the proceeds from investors for day trading exchange-listed securities.  From January 2001 through April 2002, Zieske appears to have generated a net trading loss of more than $400,000.  Allegedly, Zieske’s trading results were not disclosed to investors.  Zieske also allegedly failed to register the securities and to disclose other material information about the investments.  The Securities Division is seeking a fine of $20,000 from Zieske.


Alpha Telcom, Inc.; American Telecommunications Com;pany, Inc.; Kelley W. Abbott; Wilfred Alvarez; Thomas Durso; Daniel Curtin; Roy Grady; Hans Lorentzen; Fay L. Moyer; Glen Ottmar; Dirk Peterson; Frederick Weatherbee; their agents and employees, Respondents - SDO-102-02 - Consent Order and Order Vacating SDO-76-02 as to Thomas Durso

On November 8, 2002, the Securities Division entered into a Consent Order with Thomas Durso of Bellevue, Washington.  The Securities Division had entered a Statement of Charges against Respondents Alpha Telcom, Inc. (“Alpha”), American Telecommunications, Inc. (“ATC”), Kelley W. Abbott, Wilfrid Alvarez, Jack Chandler, Daniel Curtin, Thomas Durso, Roy Grady, Hans Lorentzen, Fay L. Moyer, Glen Ottmar, Dirk Petersen, and Frederick Weatherbee in January of 2002, and a Final Order to Cease and Desist against Durso in August of 2002.  The Securities Division alleged that Respondents sold $3,922,000 in unregistered securities to at least 100 Washington residents.  The securities sold to Washington residents were in the form of public telephones and telephone service agreements offered by Oregon based companies Alpha and ATC, through several agents.  In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Durso is barred from applying for a securities salesperson or investment adviser representative license for a period of five years.  Mr. Durso reimbursed the Securities Division $2000 for its investigative costs, and is immediately subject to a $55,000 fine in the event the Consent Order is violated.


James B. Goodrow, Respondent – SDO-100-02 – Statement of charges and Notice of Intent to enter an order suspending securities salesperson and investment adviser representative registration.  Also see S-02-300-02-CO01 vacating this order

On November 4, 2002, the Securities Division entered a Statement of Charges against James B. Goodrow.  The Division alleged that Goodrow, an Anacortes resident employed by American Express Financial Advisors, Inc. and IDS Life Insurance Company, made unauthorized transactions in the account of an elderly investor.  The unauthorized transactions resulted in the surrender of the investor’s fixed annuities, which led to substantial surrender charges. The Division gave notice of its intention to suspend Goodrow’s securities salesperson and investment advisor representative registration for a period of thirty days.    


National Communications Marketing, Inc.; Stephen Wolfe; ETS Payphones, Inc.; Charles E. Edwards; Glen L. Ottmar; Earl C. Dennis; their employees and agents, Respondents – SDO-099-02 – Amended Final Order to Cease and Desist as to National Communications Marketing, Inc..; Stephen Wolfe; ETS Payphones, Inc.; and Charles E. Edwards

On October 31, 2002, the Securities Division entered Final Order to Cease and Desist SDO-098-02 in the above matter relating to National Communications Marketing, Inc., Stephen Wolfe, ETS Payphones, Inc., and Charles E. Edwards.  This order was entered to finalize the Securities Division’s Summary Order to Cease and Desist dated February 26, 2001.  This action followed the entry of default order entered on June 14, 2002, by Administrative Law Judge Roosevelt Currie, Jr. for failure of the parties to appear at a pre-hearing conference.  The named respondents were charged in the Summary Order with violating the state securities registration and fraud laws in connection with the sale of pay telephone investments to Washington residents


National Communications Marketing, Inc.; Stephen Wolfe; ETS Payphones, Inc.; Charles E. Edwards; Glen L. Ottmar; Earl C. Dennis; their employees and agents, Respondents - SDO-098-02 - Final Order to Cease and Desist as to National Communications Marketing, Inc.; Stephen Wolfe; ETS Payphones, Inc., and Charles E. Edwards (Also see the Amended Final Order to Cease and Desist - SDO-099-02 - regarding this matter)

On October 31, 2002, the Securities Division entered a Final Order to Cease and Desist relating to the named respondents.  This order was entered to finalize the Securities Division’s Summary Order to Cease and Desist (SDO-012-01) dated February 26, 2001.  This action followed the entry of default order entered on June 14, 2002, by Administrative Law Judge Roosevelt Currie, Jr. for failure of the parties to appear at a pre-hearing conference.  The named respondents were charged in the Summary Order with violating the state securities registration and fraud laws in connection with the sale of pay telephone investments to Washington residents.


Tri-Vision Resources International and Guy Matthew Beatty, Respondents - SDO-097-02 - Summary Order to Cease and Desist and Notice of Intent to Impose a Fine

On November 1, 2002, the Securities Division entered a summary cease and desist order against Guy Matthew Beatty and Tri-Vision Resources International.  The order alleges that Beatty, an Oregon resident, offered and sold more than $130,000 of investments to at least four investors, including a Washington resident.  The investment proceeds were supposed to be used to finance overseas shipments of cement that would supposedly generate a 15% to 30% return on investment.  Beatty and Tri-Vision allegedly misrepresented the safety of the investments and failed to disclose material information about the investments.  The order seeks to impose a $5,000 fine on Beatty.


Consumer Benefits Association; National Care Corp; Our Team Inc; Pickle Corp; Laurence Harrison; Charlene Harrison ; their employees and agents, Respondents -- SDO-095 -02  -- Summary Order to Cease and Desist


Michael M. Miles; MM Miles; their employees and agents, Respondents - SDO-094-02 - Summary Order to Cease and desist and Notice of Intent to Order Affirmative Relief

The Securities Division sent a criminal referral to the King County Prosecuting Attorney regarding Miles M. Miles, a Seattle resident and former Primerica Financial Services insurance sales person.  The Securities Division investigation indicates that Miles raised at least $380,000 from at least six investors (five in Washington) promising to invest in stock and commodity options.  Miles allegedly told the investors that he was a very successful stockbroker and could double or even triple their investment in 3 to 18 months.  The Securities Division investigation shows that Miles did not invest the investor’s funds, rather he used the funds for other purposes.


Brock Contracting; David Creagh Brock, Jr.; and Kenneth John Sjordal, Respondents - SDO-093-02 - Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist and Impose Fines

Brock Contracting was a timber and logging company located in Colville, Washington.  The Securities Division alleged that Brock Contracting and David Creagh Brock, Jr. violated the registration and anti-fraud provisions of the Washington Securities Act when offering and selling approximately $750,000 worth of investments to nine investors.  On December 21, 2002, the Securities Division entered into a Consent Order with Brock Contracting and Brock, who neither admitted nor denied any violations of the Washington Securities Act.  However, Brock Contracting and Brock each agreed to cease and desist from any further violations of the Securities Act.  In addition, Brock paid $2,500 to the Securities Division for reimbursement of investigative costs.


Millennium USA Eastern Washington RLLP; Combined Agency, Inc.; James E. Ady; Respondents – SDO–092-02 Summary Order to Cease and Desist

 On November 26, 2002, the Securities Division entered a summary order to cease and desist against Millennium USA Eastern Washington RLLP; Combined Agency, Inc.; and James Ady.  The Securities Division alleged that James Ady of Spokane, acting on behalf of his insurance agency, Combined Agency, Inc., sold unregistered securities in a series of three limited liability partnerships. Those limited liability partnerships, of which Millennium USA Eastern Washington RLLP was one, were formed to purchase defaulted credit card debt and then to assign that debt to a collections company for collection. The Securities Division also alleged that Combined Agency, Inc. acted as an unregistered broker-dealer and that James Ady acted as an unregistered broker-dealer or an unregistered salesperson.  The Securities Division alleged that the sales of the interests in the limited liability partnerships were made in a misleading manner as investors were not advised of the risks associated with investing.


V2K Window Fashions, Inc. - S-02-321-02-CO01 - Consent Order

On October 5, 2002, the Securities Division entered into a Consent Order with V2K Window Fashions, Inc., a Colorado corporation, in settlement of the Division’s allegations of franchise law violations by the company. V2K Window Fashions is in the business of selling franchises for a custom decorative window treatment business. The Division alleged in the Consent Order that the company had failed to comply with the registration provision of the Franchise Investment Protection Act. V2K Window Fashions agreed, without admitting or denying the findings of fact, to cease offering or selling franchises in violation of this provision. V2K Window Fashions agreed to offer rescission to the Washington resident who purchased a franchise from the company when the offering was not registered. V2K Window Fashions agreed to reimburse the Securities Division $500 for its costs of investigation. V2K Window Fashions also waived its right to a hearing or other further proceedings in the matter.


Nationwide Marketing, Wayne Alexander, their agents and employees, Respondents - SDO-091–02 – Final Order to Cease and Desist

On October 5, 2002, the Securities Division entered Final Order to Cease and Desist SDO-091-02 against Nationwide Marketing and its principal, Wayne Alexander, for alleged violations of the Business Opportunity Fraud Act registration, disclosure document and antifraud provisions. A Summary Order was entered in the matter on August 29, 2002, which allowed for a hearing to be requested but no such request was submitted.  Nationwide Marketing, located in North Fort Myers, Florida, is the seller of an opportunity involving payment for in-home mail processing.


 

National Communications Marketing, Inc.; Stephen Wolfe; ETS Payphones, Inc.; Charles E. Edwards; Glen L. Ottmar; Earl C. Dennis; their employees and agents, Respondents - SDO-088-02 - Consent Order as to Don Alan Bennett

Respondents in the matter were alleged in the Securities Division’s Summary Order to Cease and Desist SDO-12-01 dated February 26, 2001, to have violated the state securities registration and antifraud laws in connection with the sale of payphone investments to Washington residents.  On September 20, 2002, the Securities Division entered into another Consent Order (SDO-088-02) with Don A. Bennett, an agent in the offer and sale of the payphone investments.   Don A. Bennett agreed to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act and is barred from applying for a securities salesperson or investment adviser representative license for a period of three years.  Mr. Bennett also reimbursed the Securities Division $1,500 for its investigative costs, and is subject to a $75,000 fine in the event the Consent Order is violated.


Electronic Billing Systems, Inc.; Ronald Tupps; Robert Ash; their agents and employees - SDO-087-02 - Summary Order to Cease and Desist

On October 28, 2002 the Securities Division entered a Summary Order to Cease and Desist against Electronic Billing Systems and Ronald Tupps for alleged violations of the Business Opportunity Fraud Act registration, disclosure and antifraud provisions.  Electronic Billing Systems offers an opportunity to purchase a package that will allow a purchaser to begin an in-home medical and dental billing business.  The package includes a certification program, training manuals and videos and lists of doctors and dentists who are in need of these services.  Electronic Billing Systems further offers a 21-day refund policy.


Espresso Italia Marketing, Inc.; Shadd Vickery; Robert Ashcroft; Whitney Banks; their agents and employees - SDO-086-02 - Summary Order to Cease and Desist and Revoking Registration

On October 28, 2002, the Securities Division entered a Summary Order to Cease and Desist and Revoking Registration against Espresso Italia Marketing, Inc. and its President, Shadd Vickery, for alleged violations of the Business Opportunity Fraud Act registration, disclosure and antifraud provisions.  Espresso Italia offers an opportunity to purchase espresso equipment and locating services.  Espresso Italia was registered as a Business Opportunity with the State of Washington.  This registration has been suspended.


Epitome, LLC; Robert Neace, Jr.; James Billington; their agents and employees, Respondents - SDO-084-02 - Final Order to Cease and Desist as to James Billington

On October 7, 2002, the Securities Division entered a Final Order to Cease and Desist against James Billington.  The Division had entered a Statement of Charges (SDO-077-02) in August of 2002 alleging that Epitome, LLC, Robert Neace, Jr., and Billington sold $525,000 in unregistered securities to fifteen investors.  (For details, see SDO-083-02 below) Respondent Billington failed to request a hearing in the matter, and therefore the Final Order adopts the Findings of Fact and Conclusions of law set forth in the Statement of Charges.  The Division ordered Billington to permanently cease and desist from violations of the registration and anti-fraud sections of the Securities Act.  The Division has already entered final orders against both Epitome (SDO-082-02) and Neace (SDO-083-02).  

Epitome, LLC; Robert Neace, Jr.; James Billington; their agents and employees, Respondents - SDO-083-02 - Cease and Desist as to Robert Neace, Jr.

 

Epitome, LLC; Robert Neace, Jr.; James Billington; their agents and employees, Respondents - SDO-082-02 - Cease and Desist as to Epitome, LLC

On September 16, 2002, the Securities Division entered a Final Order to Cease and Desist against Epitome, LLC (“Epitome”) (SDO-082-02) and Robert Neace, Jr. (“Neace”) (SDO-083-02).  The Division had entered a Statement of Charges (SDO-077-02) in August of 2002 alleging that Respondents Epitome, James Billington (“Billington”), and Neace sold $525,000 in unregistered securities to fifteen investors.  The securities sold by Billington and Neace were in the form of limited liability company interests in Epitome.   Billington of Vancouver, Washington, and Neace of Wilsonville, Oregon, formed Epitome for the purpose of acquiring restricted stock in Paradigm4, Inc., a Delaware corporation.  Billington and Neace allegedly told investors that Paradigm4, Inc. was going to conduct an initial public offering in the near future.  Within months of Billington and Neace using investor funds to purchase stock in Paradigm4, Inc., the Paradigm4, Inc. filed for bankruptcy protection.  Respondents Epitome and Neace failed to request a hearing in the matter, and therefore the Final Order adopts the Findings of Fact and Conclusions of law set forth in the Statement of Charges.  The Division ordered Epitome and Neace to permanently cease and desist from violations of the registration and anti-fraud sections of the Securities Act.  The charges against Billington are still pending, and the Division is seeking a 30-day suspension of his securities salesperson registration. 


Worldwide Marketing Group, Inc., Marlene Briathwaite, its owners, principals, officers, agents and employees, Respondents - SDO-081-02 - Final Order to Cease and Desist

The Securities Division issued a Final Order which adopted the Findings of Fact and Conclusions of Law as stated in the Summary Order to Cease and Desist (SDO-O53-02) that was issued on July 8, 2002.  The Division concluded that WorldWide Marketing Group violated the Business Opportunity Fraud Act by offering an unregistered envelope-stuffing home business.  Further, WorldWide committed fraud by failing to provide full disclosure of material facts to potential purchasers; including a disclosure document or financial statements.


Nationwide Marketing, Wayne Alexander, their agents and employees, Respondents - SDO-080-02 - Summary Order to Cease and Desist

On August 29, 2002, the Securities Division entered Summary Order to Cease and Desist SDO-080-02 against Nationwide Marketing and its principal Wayne Alexander for alleged violations of the Business Opportunity Fraud Act registration, disclosure document and antifraud provisions. Nationwide Marketing, located in North Fort Myers, Florida, is the seller of an opportunity involving payment for in-home mail processing.


Mario Cuccomarino, Francesco Montalto: their employees and agents, Respondents - SDO-079-02 -  Summary Order to Cease and Desist and Notice of Intent to order fines and affirmative relief.

The Securities Division entered a Summary Cease and Desist Order against Mario Cuccomarino and Francesco Montalto.  The securities Division alleges that the Respondents engaged in a scheme to defraud investors by promising investors that they could earn 40% per year, with no risk, by investing in the production of olive oil.  The Securities Division alleges that Mario Cuccomarino and Francesco Montalto have each violated the securities registration and anti-fraud provisions of the Securities Act.


Epitome, LLC; Robert Neace, Jr.; James Billington; their agents and employees, Respondents -  SDO-077-02 - Statement of Charges and Notice of Intent to Enter a Cease and Desist Order and suspending securities salesperson registration.

On August 19, 2002, the Securities Division entered a Statement of Charges against Respondents Epitome, LLC, James Billington, and Robert Neace, Jr..  The division alleges that Respondents sold $525,000 in unregistered securities to fifteen investors. The securities sold by Billington and Neace were in the form of limited liability company interests in Epitome.  The division alleges that Billington, of Vancouver, Washington, and Neace, of Wilsonville, Oregon, formed Epitome for the purpose of acquiring restricted stock in Paradigm4, Inc., a Delaware corporation, and told investors that Paradigm4, Inc. would conduct an initial public offering in the near future.  Within months of Billington and Neace using investor funds to purchase stock in Paradigm4, Inc., the company filed for bankruptcy.  The Securities Division alleges that the sales in Epitome were made in violation of the securities registration and anti-fraud laws.  Billington is licensed as a securities salesperson and insurance agent in the state of Washington, and the division gave notice of its intent to suspend his securities salesperson registration. 


Alpha Telcom, Inc.; American Telecommunications Company Inc., Respondents - SDO-076-02 - Entry of Findings of Fact and Conclusions of Law and Final Order to Cease and Desist and imposing fines as to Thomas Durso.  See summary of case.


Fitness For Life Franchise Corporation, Respondent - SDO-075-02 - Consent Order

On August 6, 2002, the Securities Division entered a Consent Order with Fitness For Life Franchise Corporation to resolve the concern that it had violated the registration requirement provision of the Franchise Investment Protection Act.  Fitness For Life Franchise Corporation offered and sold one franchise to be located in Washington to operate an individualized personal fitness training business under the names “Fitness Together” and “Fitness Together 1 Client, 1 Trainer, 1 Goal.”  In entering the consent order, the company agreed to comply with the registration requirement in the future and to inform agents and employees of the existence and contents of the order.  The franchisor has reimbursed the Division $500 for costs of investigation in the matter


In the Matter of National Communications Marketing Inc.; Stephen Wolfe; ETS Payphones, Inc.; Charles E. Edwards; Glen L. Ottmar; Earl C. Dennis; their employees and agents.  On July 31, 2002, the Securities Division entered into a Consent Order (SDO-074-02) and Order Vacating SDO-012-01 as to Earl C. Dennis.  He agreed to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act and is barred from applying for a securities salesperson or investment adviser representative license for a period of three years.  Mr. Dennis reimbursed the Securities Division $3000 for its investigative costs, and is subject to a $90,000 fine in the event the Consent Order is violated.

On July 22, 2002, the Securities Division entered into a Consent Order with Ottmar (SDO-065-02).  In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Ottmar is barred from applying for a securities salesperson or investment adviser representative license for a period of seven years.  Mr. Ottmar reimbursed the Securities Division $2000 for its investigative costs, and is immediately subject to a $15,000 fine in the event the Consent Order is violated.

On June 14, 2002, Administrative Law Judge Roosevelt Currie, Jr. entered an Order of Dismissal/Final Order in the above matter relating to Charles Edwards, National Communications Marketing, Inc., and Stephen Wolfe for failure to file applications for adjudicative hearings within the time frame set forth in the Securities Division’s Summary Order to Cease and Desist dated February 26, 2001.  This action followed a request made in January of 2002, by Securities Division for a default order against Edwards, National Communications Marketing, and Wolfe for not appearing at a pre-hearing conference and for failure to perfect appeal with the twenty-day allotted time frame.  Edwards, National Communications Marketing and Wolfe were charged with violating the state securities registration and fraud laws in connection with the sale of pay phone route investments to Washington residents.


Imtek Corporation d/b/a Beneficial Assistance; William R. Evans, Chartered; Daniel Curtin; Frederick Weatherbee; Penny Hansen; Glen Ottmar; Steven Monroe; Roger Grossbohlin: their agents and employees, Respondents - SDO-73-02 - Consent Order and Order Vacating SDO-107-01 as to Roger Grossbohlin. See summary of case.


Alpha Telcom, Inc.; American Telecommunications Company Inc., Respondents - SDO-072-02 - Consent Order and Order Vacating SDO-9-02 as to Kelley W. Abbott.  See summary of case.


Imtek Corporation d/b/a Beneficial Assistance; William R. Evans, Chartered; Daniel Curtin; Frederick Weatherbee; Penny Hansen; Glen Ottmar; Steven Monroe; Roger Grossbohlin; their agents and employees, Respondents - SDO-071-02 - Consent Order and Order Vacating SDO-107-01 as to Steven Monroe.   See summary of case.


Grout Doctor Franchising Co. of America, Inc., Barry F. Baruh, their employees and agents, Respondents - SDO-070-02 - Summary Order to Cease and Desist

On August 7, 2002, the Securities Division entered Summary Order to Cease and Desist SDO-070-02 alleging that Grout Doctor Franchising Co. of America, Inc. and Baruh failed to comply with the Washington Franchise Investment Protection Act registration and disclosure requirement provisions in the offer and sale of a franchise to be located in Washington.  The franchise involved a business performing grout cleaning and restoration services.  Grout Doctor Franchising Co. of America, Inc. may be distinguished from Grout Doctor Global Franchise Corp., a currently registered franchisor in this state.


Dwight Clifford Peterson, Respondent - SDO-068-02 - Consent Order and Order Vacating SDO-026-02

On July 22, 2002, the Securities Division entered into a Consent Order with Dwight Clifford Peterson.  The order vacates, as to Peterson, Summary Order to Cease and Desist and Notice to Impose Fine, SDO-26-02, which related to offers and sales of stock in Advanced Biometrics, Inc., a Washington corporation.  In the consent order, Peterson agreed to cease and desist from violations of the Securities Act of Washington, including violations of the securities registration, broker-dealer and salesperson registration, and anti-fraud provisions.  Peterson also agreed to pay the Securities Division $1,000 for its investigative costs and to the imposition of a $40,000 fine which fine is suspended if Peterson complies with the order.


John Aaron Stiver, Respondent - SDO-067-02 - Consent Order

On July 22, 2002, the Securities Division entered into a Consent Order with John Aaron Stiver.  The order vacates, as to Stiver, Summary Order to Cease and Desist and Notice to Impose Fine, SDO-26-02, which related to offers and sales of stock in Advanced Biometrics, Inc., a Washington corporation.  In the consent order, Stiver agreed to cease and desist from violations of the Securities Act of Washington, including violations of the securities registration, broker-dealer and salesperson registration, and anti-fraud provisions.  Stiver also agreed to pay the Securities Division $1,000 for its investigative costs and to the imposition of a $40,000 fine which fine is suspended if Stiver complies with the order.


National Communications Marketing, Inc.; Stephen Wolfe; ETS Payphones, Inc.; Charles E. Edwards; Glen L. Ottmar; Earl C. Dennis; their employees and agents, Respondents - SDO-065-02 - Consent Order and Order Vacating  SDO-012-01 as to Glen L. Ottmar


Imtek Corporation d/b/a Beneficial Assistance; William R. Evans, Chartered; Daniel Curtin; Frederick Weatherbee; Glen Ottmar; Steven Monroe; Roger Grossbohlin; their agents and employees, Respondents - SDO-064-02 - Consent Order and Order Vacating SDO-107-01 as to Glen Ottmar.


Alpha Telcom, Inc.; American Telecommunications Company Inc., Respondents - SDO-063-02 - Consent order vacating SDO-9-02 as to Glen Ottmar.  See summary of case.


Safe Harbor Financial Services, Inc. and Michael Corey, Respondents - SDO-61-02 - Consent Order and Order Vacating SDO-039-02

On August 2, 2002, the Securities Division entered into a consent order with Michael Corey and Safe Harbor Financial Services, Inc.  The Securities Division had entered a Summary Order to Cease and Desist against Safe Harbor Financial Services, Inc. and Michael Corey, alleging that Safe Harbor Financial Services, Inc., which targets seniors, is acting as an unregistered investment adviser.  In the Consent Order, Corey and Safe Harbor Financial Services, Inc. each agreed to cease and desist from acting as an unregistered investment adviser and Michael Corey agreed to cease and desist from acting as an unregistered investment adviser representative, and they jointly reimbursed the Securities Division $500 for investigative costs. 


Pita Pit, Inc., Respondent - SDO-056-02 - Consent Order 

On June 26, 2002, the Securities Division entered a Consent Order with Pita Pit, Inc. to resolve the principal concern that it had violated the registration requirement provision of the Franchise Investment Protection Act.  Pita Pit, Inc. offered and sold one franchise to be located in Washington to operate a retail establishment devoted to the preparation and sale of pita sandwiches and other food items.  In entering the consent order, the company agreed to comply with the registration requirement in the future and to inform agents and employees as well as current franchisees of the existence and contents of the order.  The franchisor has reimbursed the Division $500 for costs of investigation in the matter.


Imtek Corporation d/b/a Beneficial Assistance; William R. Evans, Chartered; Daniel Curtin; Frederick Weatherbee; Penny Hansen; Glen Ottmar; Steven Monroe; Roger Grossbohlin; their agents and employees, Respondents - SDO-055-02 - Consent Order vacating SDO-107-01 as to Frederick Weatherbee.  See summary of case.


Worldwide Marketing Group, Inc., Marlene Briathwaite, its owners, principals, officers, agents and employees, Respondents - SDO-053-02 - Summary Order to Cease and Desist

 On July 8, 2002, the Securities Division entered a Summary Order to Cease and Desist against Worldwide Marketing Group and Marlene Briathwaite of Miami, Florida for offering an unregistered business opportunity involving an envelope stuffing investment opportunity in which the prospective investor is told that he or she can earn $7 per each mail order catalog stuffed and mailed. Respondents failed to provide material disclosure information regarding the investment to a Washington offeree. The Respondents are ordered to cease and desist from violations of the registration and anti-fraud provisions of the Business Opportunity Fraud Act.


Combined Resource Systems, Inc., Barry Wise, Kevin Hall, its owners, principals, officers, agents and employees, Respondents - SDO-052-02 - Summary Order to Cease and Desist

On July 8, 2002, the Securities Division entered a Summary Order to Cease and Desist against Respondents Combined Resources, Barry Wise and Kevin Hall of Henderson Nevada for the offer of an unregistered business opportunity involving the purchase and resale of earthworms. Respondents failed to provide material disclosure information regarding the investment to a Washington offeree. The Respondents are ordered to cease and desist from violations of the registration and anti-fraud provisions of the Business Opportunity Fraud Act.


Alpha Telcom, Inc.; American Telecommunications Company Inc., respondents - SDO-059-02 - Consent order vacating SDO-9-02 as to Hans Lorentzen.  See summary of case.

Alpha Telcom, Inc.; American Telecommunications Company Inc., respondents - SDO-057-02 - Consent order vacating SDO-9-02 as to Daniel Curtin.  See summary of case.

Alpha Telcom, Inc.; American Telecommunications Company Inc., respondents - SDO-063-02 - Consent order vacating SDO-9-02 as to Glen Ottmar.  See summary of case.

Alpha Telcom, Inc.; American Telecommunications Company Inc., respondents - SDO-054-02 - Consent order vacating SDO-9-02 as to Frederick Weatherbee.  See summary of case.

Alpha Telcom, Inc.; American Telecommunications Company Inc., respondents - SDO-051-02 - Consent order vacating SDO-9-02 as to Dirk Petersen.  See summary of case.

Alpha Telcom, Inc.; American Telecommunications Company Inc., respondents - SDO-050-02 - Consent order vacating SDO-9-02 as to Wilfred Alvarez.  See summary of case.

Alpha Telcom, Inc.; American Telecommunications Company Inc., respondents - SDO-048-02 - Consent order vacating SDO-9-02 as to Jack Chandler.  See summary of case.

Alpha Telcom, Inc.; American Telecommunications Company Inc., respondents - SDO-047-02 - Consent order vacating SDO-9-02 as to Fay L. Moyer.  See summary of case.

Alpha Telcom, Inc.; American Telecommunications Company Inc., respondents - SDO-038-02 - Consent order vacating SDO-9-02 as to Roy Grady.  See summary of case.


Gene David Hart, respondent - SDO-049-02 - Consent Order and order vacating SDO-023-02

On June 3, 2002, the Securities Division entered into a consent order with Gene David Hart.  Mr. Hart was ordered to cease and desist from allegedly violating the registration and anti-fraud provisions of the Washington Securities Act.  Mr. Hart agreed to repay five investors $22,000 and to pay $500 for investigative costs.  Mr. Hart had allegedly placed advertisements in a Bremerton newspaper for 10% certificates of deposit that he allegedly falsely claimed that the CDs were a guaranteed investment. 


General Marketing Associates, Inc., Alan Davis and Steven Chausse, Respondents - SDO-043–02 – Consent Order to Cease and Desist and vacating SDO-44-01 as to Respondent Steven Chausse


Romio’s Franchise Group, Inc., respondent - SDO-42-02 - Consent Order

On May 16, 2002, the Securities Division entered a Consent Order with Romio’s Franchise Group, Inc. to resolve the principal concern that it had violated the registration requirement provision of the Franchise Investment Protection Act.  Romio’s Franchise Group, Inc. offered and sold franchises for the right to operate dine-in pizza restaurants for the retail sale of pizza and other products under the name “Romio’s.”  In entering the consent order, the company agreed to comply with the registration requirement in the future, to properly prefile franchise advertisements to be used in this state, and to inform agents and employees as well as current franchisees of the existence and contents of the order.  The franchisor has reimbursed the Division $700 for costs of investigation and unpaid registration fees.


Robert B. Pyles, Aka R. Bruce Pyles, Aka Stan Taylor, respondent - SDO-40-02 - Statement of Charges, and SDO-40-02(A) - Amended Statement of Charges

The Securities Division Amended SDO-40-02, a Statement of Charges and Notice of Intent to Issue an Order Suspending Registration and Imposing fines against Res pondent Robert B. Pyles, a securities salesperson, presently employed by Morgan Stanley DW, Inc.  The Securities Division alleges that, while acting as a securities salesperson with CIBC Oppenheimer, the Respondent engaged in dishonest and unethical practices by accepting a loan, in the amount of $25,000, from a 77 year old widow, who was one of his brokerage customers.  The Securities Division also alleges that the Respondent failed to repay the funds to the customer.  The amendments allege that the Respondent failed to make timely filings of address changes with the Securities Division.


Global Vending, Inc.; Thomas J. Foley; their agents and employees, respondents - SDO-37-02 - Final Order to Cease and Desist

On May 8, 2002, the Securities Division entered a Final Order to Cease and Desist against Respondents Global Vending and Thomas J. Foley, of Sunrise, Florida.  Global Vending sells equipment that enables purchasers to establish a vending business.  Respondents failed to request a hearing in the matter, and therefore the Final Order adopts the Findings of Fact and Conclusions of law set forth in the Summary Order.  Respondents were ordered to cease and desist from violations of the disclosure document, anti-fraud, and registration sections of the Business Opportunity Fraud Act.  See SDO-20-02 .


Carl M. Ogren; Ogren & Associates, Inc.; Reliance Financial Group, Inc.; Paragon Capital Group, Inc.; Respondents - SDO-35-02 - Final Order to Cease and Desist

The Securities Division entered a final order as to Reliance Financial Group, Inc. and Paragon Capital Group, Inc., both of which are Florida corporations.  Reliance and Paragon sold fractional interests in viatical settlements to Washington residents. The Securities Division alleged that these interests were unregistered securities, that the sales of the interests were made without adequate disclosure of the risks involved, and that Paragon Capital Group, Inc. acted as an unregistered broker-dealer, all in violation of the Securities Act of Washington.


Frederick (“Rocky”) Weatherbee, William Loyd Herron, Paul Vose, Brian Denike, Jeff Wordell and Enerphaze Corporation; Respondents - SDO-034-02 - Summary Order to Cease and Desist and Notice of Intent to Impose Fines

Enerphaze Corporation is a company located in Spokane, Washington that is purportedly in the business of selling a chemically-enhanced shot peening process for treating metal parts to reduce part wear and fatigue.  The company has allegedly offered and sold more than $3.7 million of Enerphaze stock and stock warrants to more than 500 investors, many of whom are Washington residents.  The offering was never registered with the Washington Securities Division.  The salespersons were not registered securities salespersons when selling Enerphaze securities.  The respondents allegedly failed to disclose material information when offering and selling the investments.  Two of the respondents, Frederick Weatherbee and William Loyd Herron, are the subject of prior administrative orders.


International Investors Private Placement Fund, LLC(IIPPF); International Investment Advisors, LLC; William V. Fowler; their agents and employees, Respondents - SDO-33-02 - Final Order to Cease and Desist

The Securities Division alleges that Respondents sold $475,000 in unregistered securities to at least three investors, including two Washington residents.  The securities sold by Fowler were in the form of limited liability company units in IIPPF, for the purported purpose of allowing investors to invest in private placement offerings.  Respondents failed to request a hearing in the matter, and therefore the Final Order adopts the Findings of Fact and Conclusions of law set forth in the Statement of Charges.  The Securities Division ordered Respondents to cease and desist from violations of the registration and anti-fraud sections of the Securities Act. 


Synergy Alliance Group, LLC; Larry W. Tanner; their agents and employees; Respondents - SDO-032-02 - Final Order to Cease and Desist

The Securities Division entered a Final Order to Cease and Desist against Respondents, alleging that they solicited investors via the Internet for investment funds in exchange for equity shares.  Respondents allegedly represented that investors could earn six times their original investment from loans made with investor funds to early stage companies.  Respondents failed to request a hearing in the matter, and therefore the Final Order adopts the Findings of Fact and Conclusions of law set forth in the Summary Order.  Respondents were ordered to cease and desist from violations of the registration and anti-fraud sections of the Securities Act and to pay a fine of $5,000.


Neil T. Adkins; C. John Cannon; Senior Estate Planning Group, Inc.; American National Security, Inc.; American National Security Monitoring, Inc.; American National Safety, Inc.; Research Safety Industries, Inc.; Executive Search, Inc.; Respondents - SDO-31-02 - Consent Order

The Securities Division entered into a Consent Order with Respondents.  The Division issued a Summary Order to Cease and Desist (SDO-30-00) in March of 2000, and amended the Summary Order (SDO-30-00 Amended) in December of 2001.  In that Summary Order, the Division alleged that Adkins and Cannon, two insurance salesmen, sold bonds issued by several of Adkins’ companies to insurance clients who were senior citizens, many of whom had used their life savings to buy the bonds. Adkins and Cannon purportedly misrepresented facts and failed to provide investors with material information about the companies in connection with the sales.  Under terms of the Consent Order, Respondents agreed there was sufficient evidence to find the above facts, and were ordered to cease and desist from violations of the Securities Act.  Adkins and Cannon may not apply to be a securities salesperson or investment adviser representative for seven years.  Respondents also reimbursed the Division $20,000 for investigation costs and will be subject to an $80,000 fine if the Consent Order is violated.


Pacific West Securities, Inc. and Lorretta N. Elderkin, individually and as President of Pacific West Securities, Inc., Respondents - SDO-030-02 - Consent Order

On May 17, 2002, the Securities Division entered into a Consent Order with respondents Pacific West Securities, Inc. of Kent, Washington and its President, Lorretta N. Elderkin.  The Division's case derived from Respondent's alleged failure to supervise a securities salesperson, Dorsey E. Rowan, Jr., who offered and sold unregistered securities to his Pacific West clients.  The Order revoked Elderkin's licenses and barred her from reapplying for licensing for ten years.  Pacific West agreed to hire an independent consultant to review the firm's supervisory systems and procedures, and once the review is complete, to adopt any recommended changes.  In addition, Pacific West paid the Securities Division $80,000 in costs, paid a $40,000 fine, with an additional $40,000 suspended, and made a voluntary donation of $10,000 to the Investor Protection Trust.


Dorsey E. Rowan, Jr., Respondent - SDO-029-02 - Consent Order

On June 7, 2002, the Securities Division entered into a settlement with Dorsey E. Rowan, Jr.  In the Order, Rowan, formerly a salesperson with Pacific West Securities, Inc., admitted to violating the anti-fraud, registration, and suitability provisions of the Securities Act.  Rowan, who is no longer active in the securities industry, was barred from applying for registration as a securities salesperson for a period of five years.  The charges stemmed from Rowan's sale of unregistered Nu West securities to his clients at Pacific West, who lost more than $2 million.  In a related action, the Division recently entered into a settlement with Pacific West Securities, Inc. for failing to reasonably supervise Rowan's activities.

See SDO-011-01.pdf for a copy of the Rowan charges;

SDO-030-02.pdf for a copy of the Pacific West settlement;  SDO-005-01.pdf for a copy of the Pacific West charges; and SDO-87-00.pdf for a copy of the Nu West summary Order.


Pan American Global Group, Inc.; Peter Pintarics; Hampton Bond Program; Hampton, Broadstone & Oliver, Inc.; and Patrick Pogue; Respondents - SDO-28-02 - Final Order to Cease and Desist

The Securities Division entered a final order as to Patrick Pogue, Hampton Broadstone & Oliver, Inc.; and the Hampton Bond program.  The Securities Division alleged that these respondents were all involved in the sale of prime bank type investments as part of an advance fee scheme. Investors paid fees of $50,000 or more in fees in order to secure large loans for their businesses and benefit from profits on lending money to international financial institutions. The respondents are located in Tulsa, Oklahoma. The Washington sales of these investments were made through a Bellevue firm whose principal has fled the country.  The Securities Division alleged that Pogue, Hampton Broadstone & Oliver, Inc.; and the Hampton Bond program have each violated the antifraud and registration of securities sections of the Securities Act of Washington.


EP Food Services, Inc.; Respondent - SDO-027-02 - Consent Order

The Securities Division entered a Consent Order with EP Food Services, Inc. to resolve the concern that it had allegedly violated the registration requirement provision of the Franchise Investment Protection Act.  EP Food Services, Inc. offered and sold franchises to operate pizza restaurants under the name “Eatsa Pizza.”  The company agreed to comply with the registration requirement of the Act and reimbursed the Division $500 for costs of investigation.


Dwight Clifford Peterson, Respondent - SDO-26-02 - Summary Order to Cease and Desist and Notice of Intent to impose fine

The Securities Division entered a Summary Cease and Desist Order against Dwight Clifford Peterson (“Peterson”) for alleged violations of the securities registration, broker-dealer registration and anti-fraud provisions of the Securities Act.  The order alleges that Peterson offered and sold more than $600,000 worth of personal promissory notes secured by shares of Peterson’s Advanced Biometrics, Inc. (“ABI”) stock to approximately 100 investors.  Peterson also sold more than $50,000 worth of his ABI stock to approximately 30 investors.  When offering and selling the notes and stock, Peterson allegedly failed to disclose material information about the investments.  The order gives notice of the Securities Division’s intent to impose a $50,000 fine against Peterson.


Wild on Wireless, Inc; Randal Blue; their agents and employees, Respondents - SDO-25-02 - Statement of charges and notice of intention to enter Order to Cease and Desist, Notice of Intent to revoke exemptions, and notice of intent to impose fines and order affirmative relief

The Securities Division entered a Statement of Charges against Respondents Wild on Wireless, Inc. (“WOW”), and Randal Blue (“Blue”), of Mount Vernon, Washington.  The Securities Division alleges that Respondents sold $107,000 in unregistered securities to at least nineteen investors, including sixteen Washington residents.  The securities sold by Blue were in the form of stock and debentures.  The Securities Division alleges that the sales were made in violation of the securities registration and anti-fraud laws.  The Division intends to impose a fine of up to $95,000 against Respondents.


Leather Medic, Inc.; Kyle Life; their agents and employees, Respondents - SDO-24-02 - Consent Order and Order vacating SDO-19-02

On April 9, 2002, the Securities Division entered Consent Order SDO-024-02 with Respondents Leather Medic and Kyle Life, of Fort Myers, Florida.  The Division alleged that in connection with their offer of a franchise to a Washington resident via their website, Respondents violated the registration and anti-fraud provisions of the Franchise Act.  Respondents agreed to comply with the registration provisions of the Franchise Act and reimbursed the Division $1000 for its investigation costs incurred in investigating the matter.


Gene David Hart and Hart Investing Company, Respondents - SDO-023-02 - Summary Order to Cease and Desist and Notice of Intent to impose fines and costs

The Securities Division entered a Summary Cease and Desist Order against Gene Hart for running a newspaper advertisement in the Bremerton Sun that offered Certificates of Deposit earning 10 percent interest.   The Division alleges that Hart falsely claimed that investors would receive a “guaranteed” return on their investment.  The Division alleges that, in fact, Hart appeared to be collecting investor funds for day trading.  The Securities Division alleges that Hart has violated securities registration and anti-fraud provisions of the Securities Act.


International Investors Private Placement Fund, LLC; International Investment Advisors, LLC; William V. Fowler; their agents and employees, Respondents. - SDO-22-02 - Statement of charges and Notice of Intention to enter Order to Cease and Desist

The Securities Division entered a Statement of Charges against Respondents William V. Fowler, International Investors Private Placement Fund, LLC (“IIPPF”), and International Investment Advisors, LLC (“IIA”).  The Securities Division alleges that Respondents sold $475,000 in unregistered securities to at least three investors, including two Washington residents.  The securities sold by Fowler were in the form of limited liability company units in IIPPF, for the purported purpose of allowing investors to invest in private placement offerings.  The Securities Division alleges that the sales were made in violation of the securities registration and anti-fraud laws, and in violation of Consent Order SDO-24-98.


Alpha Telcom, Inc.; American Telecommunications Company, Inc.; Kelley W. Abbott; Wilfrid Alvarez; Jack Chandler; Daniel Curtin; Thomas Durso; Roy Grady; Hans Lorentzen; Fay L. Moyer; Glen Ottmar; Dirk Peterson; Frederick Weatherbee; their agents and employees, Respondents - SDO-21-02 -  Entry of Findings of Fact and Conclusions of Law and Final Order to Cease and Desist  as to Alpha Telcom, Inc., and American Telecommunications Company, Inc.

The Securities Division entered a Final Order to Cease and Desist against Respondents Alpha Telcom, Inc. (“Alpha”) and American Telecommunications Company, Inc. (“ATC”).  The Securities Division alleges that Respondents sold $3,922,000 in unregistered securities to at least 100 Washington residents.  The securities sold to Washington residents were in the form of public telephones and telephone service agreements offered by Oregon-based companies Alpha and ATC, through several agents.  Both Alpha and ATC failed to request a hearing in the matter, and therefore the Final Order adopts the Findings of Fact and Conclusions of law set forth in the Summary Order.   Alpha and ATC have been ordered to pay disgorgement to investors by the United States District Court Judge for the District of Oregon.  The Securities Division ordered Alpha and ATC to cease and desist from violations of the registration and anti-fraud sections of the Securities Act.  Also see SDO-09-02


Global Vending, Inc.; Thomas J. Foley; their agents and employees, respondents - SDO-20-02

The Securities Division entered a Summary Order to Cease and Desist against respondents Global Vending and Thomas J. Foley, of Sunrise, Florida.  The Division alleges that respondents violated the disclosure document, antifraud, and registration provisions of the Business Opportunity Fraud Act.  Global Vending sells equipment that enables purchasers to establish a vending business.  Respondents were ordered to cease and desist from further violations of the Business Opportunity Fraud Act pending a final determination of the outcome of this matter.


Leather Medic, Inc.; Kyle Life; their agents and employees, respondents - SDO-19-02

The Securities Division entered a Summary Order to Cease and Desist against respondents Leather Medic and Kyle Life, of Fort Myers, Florida.  The Division alleges that in connection with their offer of a franchise to a Washington resident via their website the respondents violated the registration and anti-fraud provisions of the Franchise Act.  Respondents were ordered to cease and desist from further violations of the Franchise Act pending a final determination of the outcome of this matter.


Wilfred Kent; Wilfred Kent & Associates; Wilfred Kent & Associates, LLC; Joshua Patten; Christian Woodhouse-Kent; their employees and agents - SDO-018-02 - Summary Order to Cease and Desist

The Securities Division entered a Summary Cease and Desist Order against Wilfred Kent, Wilfred Kent & Associates, Wilfred Kent & Associates, LLC, Joshua Patten and Christian Woodhouse-Kent.  The Securities Division alleges that the Respondents engaged in a scheme to defraud investors by promising the investor 350 percent annual return on the investment by investing in inter-bank notes through offshore accounts.  The Securities Division alleges that Wilfred Kent, Wilfred Kent & Associates, Wilfred Kent & Associates, LLC, Joshua Patten and Christian Woodhouse-Kent have violated the securities registration and anti-fraud provisions of the Securities Act.                


Aeroseal, Inc., Robert Hageman, Mark Modera, their employees and agents, Respondents - SDO-017-02 - Consent Order

The Securities Division entered a Consent Order with Aeroseal, Inc. to resolve the concern that it had allegedly violated the registration requirement provision of the Franchise Investment Protection Act.  Aeroseal, Inc. offered and sold franchises for businesses utilizing patented technology to provide duct-sealing services for heating, ventilation, and/or air conditioning (HVAC) systems.  The company agreed to comply with the registration requirement in the future and reimbursed the Division $500 for costs of investigation.


Jay D. Kaiser, Senior Advisor, Inc. and Jay D. Kaiser, Respondents - Summary Order to Cease and Desist SD0-015-02 and Consent Order SDO-016-02.

Jay Kaiser, an unregistered investment adviser representative, and his corporation, an unregistered investment adviser, were the subjects of an enforcement action entered on May 16, 2002.  In Summary and Consent Orders entered the same day, the Division charged Respondents with failing to register as required by RCW 21.20.040.  In resolving the case, the Division permitted the respondents to register as required, providing that the firm pay its late registration fees and offer refunds to certain clients.  In addition, the Respondents agreed to and paid $2,150 in late registration fees, paid $6,000 for reimbursement of the Division's investigative costs, and agreed to pay up to $3,000 per year for three years for the costs of future examinations. 


The Samuel Edwards Group, The Sapphire Fund, Mark Alan Wagner, Michael Munkasey; Respondents - SDO-012-02 - Final Order to Cease and Desist


Synergy Alliance Group, LLC; Larry W. Tanner; their agents and employees, Respondents - SDO-11-02

The Securities Division issued a Summary Order to Cease and Desist against respondents Synergy Alliance Group and Larry W. Tanner of Winter Park, Florida.  Respondents allegedly solicited investors via the Internet for investment funds in exchange for equity shares.  Respondents allegedly represented that investors could earn six times their original investment from loans made with investor funds to early-stage companies.  The Securities Division charged Respondents with violating the registration and anti-fraud provisions of the Securities Act.  The Securities Division intends to impose a fine of $5,000.


Caller I-C Technologies, Inc.; Mark Gottschalk; their agents and employees, respondents - SDO-10-02

The Securities Division entered into a Consent Order with Respondents Caller I-C Technologies (“Caller I-C”) and Mark Gottschalk (“Gottschalk”).  Caller I-C was formed for the purported purpose of selling video conferencing equipment.  The Division alleges that Respondents sold unregistered securities in Caller I-C to seven Washington residents.  Prior to the entry of the Consent Order, Gottschalk either repaid or entered into agreements to pay restitution to all seven Washington residents. Pursuant to the terms of the Consent Order, Respondents agreed to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, and reimbursed the Division $500 for its investigation costs in the matter. 


Alpha Telcom, Inc. ; American Telecommunications, Inc. ; Kelley W. Abbott, Wilfrid Alvarez, Jack Chandler, Daniel Curtin, Thomas Durso, Roy Grady, Hans Lorentzen, Fay L. Moyer, Glen Ottmar, Dirk Peterson, and Frederick Weatherbee , respondents.

Alpha Telcom, Inc. ; American Telecommunications, Inc. - SDO-9-02

On January 29, 2002, the Securities Division entered a Statement of Charges against Respondents Alpha Telcom, Inc. (“Alpha”), American Telecommunications, Inc. (“ATC”), Kelley W. Abbott, Wilfrid Alvarez, Jack Chandler, Daniel Curtin, Thomas Durso, Roy Grady, Hans Lorentzen, Fay L. Moyer, Glen Ottmar, Dirk Peterson, and Frederick Weatherbee.  The Securities Division alleges that Respondents sold $3,922,000 in unregistered securities to at least 100 Washington residents.  The securities sold to Washington residents were in the form of public telephones and telephone service agreements offered by Oregon based companies Alpha and ATC, through several agents.  The Securities Division alleges that the sales were made in violation of the securities registration and anti-fraud laws. 

Roy Grady, Respondent (See Alpha Telcom, Inc. order above) - SDO-038-02 - Consent Order

On June 3, 2002, the Securities Division entered into a Consent Order with Roy Grady of Bellingham, Washington.  In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Grady's securities salesperson license was suspended for a period of thirty days.  Mr. Grady reimbursed the Securities division $10,000 for its investigative costs, and is immediately subject to a $10,000 fine in the event the Consent Order is violated.

Fay L. Moyer, Respondent (See Alpha Telcom, Inc. order above) - SDO-047-02 - Consent Order

On June 3, 2002, the Securities Division entered into a Consent Order with Fay L. Moyer of Omak, Washington.  In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Moyer is barred from applying for a securities sales person or investment adviser representative license for a period of five years.  Mr. Moyer also reimbursed the Securities Division $3,000 for its investigative costs, and is immediately subject to a $55,000 fine in the event the Consent Order is violated.

Jack Chandler, Respondent (See Alpha Telcom, Inc. order above) - SDO-048-02 - Consent Order

On June 3, 2002, the Securities Division entered into a Consent Order with Jack Chandler of Edmonds, Washington.  In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Chandler is barred from applying for a securities salesperson or investment adviser license for a period of five years.  Mr. Chandler also reimbursed the Securities Division $10,000 for its investigative costs, and is immediately subject to a $50,000 fine in the event the Consent Order is violated.

Wilfred Alvarez, Respondent (See Alpha Telcom, Inc. order above) - SDO-050-02 - Consent Order

On June 3, 2002, the Securities Division entered into a Consent Order with Wilfred Alvarez of Port Orchard.  In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Alvarez's securities salesperson license was suspended for a period of thirty days.  Mr. Alvarez also reimbursed the Securities Division $750 for its investigative costs, and is immediately subject to a $10,000 fine in the event the Consent Order is violated.

Dirk Petersen, Respondent (See Alpha Telcom, Inc. order above) - SDO-051-02 - Consent Order

On June 12, 2002, the Securities Division entered into a Consent Order with Dirk Petersen of Bellevue, Washington.  In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Petersen's securities salesperson license was suspended for a period of thirty days.  Mr. Petersen also reimbursed the Securities Division $3,000 for its investigative costs, and is immediately subject to a $20,000 fine in the event the Consent Order is violated.

Frederick Weatherbee, Respondent (See Alpha Telcom, Inc. order above) - SDO-54-02 - Consent Order

On June 17, 2002, the Securities Division entered into a Consent Order with Frederick Weatherbee of Spokane, Washington.  In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Weatherbee is barred from applying for a securities salesperson or investment adviser representative license for a period of five years.  Mr. Weatherbee also reimbursed the Securities Division $5,000 for its investigative costs, and is immediately subject to a $40,000 fine in the event the Consent Order is violated.

Kelley Abbott, Respondent (See alpha Telcom, Inc. order above) - SDO-72-02 - Consent Order

On August 1, 2002, the Securities Division entered into a Consent Order with Kelley Abbott of Spokane, Washington.  In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Abbott is barred from applying for a securities salesperson or investment adviser representative license for a period of five years.  Mr. Abbott also reimbursed the Securities Division $750 for its investigative costs, and is immediately subject to a $5,000 fine in the event the Consent Order is violated.

Kelley Abbott, Respondent (See Alpha Telcom, Inc. order above) - SDO-072-02 - Consent Order

On August 1, 2002, the Securities Division entered into a Consent Order with Kelley Abbott of Spokane, Washington.  In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Abbott is barred from applying for a securities salesperson or investment adviser representative license for a period of five years.  Mr. Abbott also reimbursed the Securities Division $750 for its investigative costs, and is immediately subject to a $5,000 fine in the event the Consent Order is violated.

Thomas Durso, Respondent (See Alpha Telcom, Inc. order above) - SDO-076-02 - Entry of Findings of Fact and Conclusions of Law and Final Order to Cease and Desist and imposing fines

On August 14, 2002, the Securities Division entered a Final Order to Cease and Desist against Respondent Thomas Durso.  Mr. Durso failed to request a hearing in the matter, and therefore the Final Order adopts the Findings of Fact and Conclusions of law set forth in the Summary Order.   The Securities Division ordered Mr. Durso to cease and desist from violations of the registration and anti-fraud sections of the Securities Act. The Division also ordered Mr. Durso to pay a fine of $55,000.


Starcash, Inc., Jeanne LeClercq, Frederick Jay Shapiro, Kip Marsique, and Steven C. Searson, respondents - SDO-007-02 - Intent to impose fines and order affirmative relief; Promises Consulting Corporation and Gerald J. Glasser, respondents - SDO-006-02 - Summary Order to Cease and Desist.

On January 24, 2002, the Division issued two related Summary Orders against firms engaged in the offer and sale of unregistered securities.  Starcash, Inc., a Florida check cashing corporation, was order to cease fraudulently offering its unregistered securities using unregistered broker/dealers.  SDO-007-02 Promises Consulting, a Nevada corporation owned and operated by Gerald Glasser of Marina Del Rey, California, was ordered to cease fraudulently offering the Starcash securities.  SDO-006-02 Both firms have been given notice of the Department's intent to impose substantial fines and order affirmative relief, including restitution.


Sun Services, Inc., John T. Jones and John W. Wachsmith, respondents - SDO-05-02

A Summary Order to Cease and Desist and notice of intent to order fines and affirmative relief was issued against Sun Services, Inc., a Nevada corporation having its primary place of business in Palm Springs, California, as well as John T. Jones, who together with his wife controls 80 percent of Sun Services, and John W. Wachsmith, for alleged violations of the Securities Act of Washington.


Skip Clemens and TAC International Ltd., its  employees and agents, respondents - SDO-4-02 - Consent Order.

The Securities Division entered into a Consent Order with Respondent Skip Clemens in which the Division alleged that Clemens offered and sold unregistered securities, violated the anti-fraud provision, and acted as an unregistered broker-dealer and/or salesperson. Clemens represented TAC International that offered an investment in offshore trading of financial instruments called debentures that are purportedly issued or traded among major U.S. and European banks and financial institutions. Since 1993, the Federal Reserve Board, the Securities and Exchange Commission and other regulatory agencies have alerted the public that such debenture trading programs and other similar schemes may be fraudulent and often do not involve bona fide financial instruments or actual trading of securities.


Mr. Plant, Inc.; Lawrence R. McCarthy; their agents and employees, Respondents - SDO-2-02 - Final Order to Cease and Desist.

The Securities Division entered into a Final Order to Cease and Desist against Respondents Mr. Plant and Lawrence R. McCarthy.  The Division alleges that in connection with their offer of a franchise to a Washington resident via their website, Respondents violated the Franchise Act.  Respondents failed to request a hearing in the matter, and therefore the Final Order adopts the Findings of Fact and Conclusions of law set forth in the Summary Order.  Respondents were ordered to cease and desist from violations of the registration and anti-fraud sections of the Franchise Act. 


Lane Funding Association; Bobi Lane; Robert Foust; their employees and agents, Respondents - SDO-109-01 - Summary Order to Cease and Desist

The Securities Division entered a Summary Cease and Desist Order against Lane Funding Association, Bobi Lane and Bob Foust.  The Securities Division alleges that the Respondents engaged in a “Ponzi scheme” to defraud investors by promising the investors 120 percent annual return on their investment.  The Respondents have been criminally charged with securities fraud in Linn County, Oregon. The Securities Division alleges that Lane Funding, Lane and Foust have violated the securities registration and anti-fraud provisions of the Securities Act.


Northwest Best Direct, Inc., d.b.a. Spokane's Best Book, d.b.a. Best Book Publications, Vincent E. Bozzi, and Emily G. Bozzi - SDO-108-01 - Final Order to Cease and Desist and revoke exemptions.

On December 19 the Securities Division entered a Final Order to Cease and Desist against the above firm and its officers, Vincent and Emily Bozzi.  The firm, a Spokane publisher of magazines, allegedly offered unregistered securities to Washington residents.  After a Summary Cease and Desist Order was issued in November, the firm submitted a statement in lieu of a hearing requesting a reduction in fines.  The Division, after considering the evidence in the case, imposed injunctive relief to prevent future violations and imposed a $20,000 fine, with the entire amount suspended based on future compliance with the Securities Act. A copy of the Summary Order issued in November against the firm may be reviewed at the following link: SDO-095-01


Imtek Corporation d.b.a. Beneficial Assistance:  William R. Evans, Chartered; Daniel Curtin; Frederick Weatherbee; Penny Hansen; Glen Ottmar; Steven Monroe; Roger Grossbohlin; their agents and employees, Respondents  - Summary Order to Cease and Desist, Notice of intent to suspend or revoke Securities Salesperson Registration, and notice of intent to impose fines and order affirmative relief - SDO-107-01

The Securities Division entered a Summary Order to Cease and Desist against Respondents Imtek Corporation d.b.a Beneficial Assistance, William R. Evans, Chartered (a corporation); Daniel Curtin, Frederick Weatherbee, Penny Hansen, Glen Ottmar, Steven Monroe, and Roger Grossbohlin.  The Securities Division alleges that Respondents sold more than $1,000,000 in unregistered securities to at least 45 Washington residents.  The securities sold to Washington residents were in the form of viatical settlement contracts and were offered by Beneficial and Evans, both Maryland corporations, through several agents.  The Securities Division alleges that the sales were made in violation of the securities registration and anti-fraud laws.

Daniel Curtin, Respondent (See Beneficial Assistance order above) - SDO-058-02 - Consent Order and Order Vacating SDO-107-01 as to Daniel Curtin.

On July 1, 2002, the Securities Division entered into a Consent Order with Daniel Curtin of Olympia, Washington.  In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Curtin is barred from applying for a securities salesperson or investment adviser representative license for a period of five years.  Mr. Curtin also reimbursed the Securities Division $2,000 for its investigative costs, and is immediately subject to a $15,000 fine in the event the Consent Order is violated.

Frederick Weatherbee, Respondent (See Beneficial Assistance order above) - SDO-055-02 - Consent Order.

On June 17, 2002, the Securities Division entered into a Consent Order with Frederick Weatherbee of Spokane, Washington.  In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Weatherbee is barred from applying for a securities salesperson or investment adviser representative license for a period of five years.  Mr. Weatherbee also reimbursed the Securities Division $2,500 for its investigative costs, and is immediately subject to a $5,000 fine in the event the Consent Order is violated.

On July 22, 2002, the Securities Division entered into a Consent Order (SDO-064-02) and Order Vacating SDO-107-01 as to Glen Ottmar of Bellevue, Washington.  In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Ottmar is barred from applying for a securities salesperson or investment adviser representative license for a period of five years.  Mr. Ottmar also reimbursed the Securities Division $3,000 for its investigative costs, and is immediately subject to a $65,000 fine in the event the Consent Order is violated.


Jeanne A. Perkins SDO-001-02 - Consent Order and Order Vacating SDO-099-01

On January 8, 2001, the Securities Division entered into a Consent Order  with Respondent Jeanne A. Perkins.


Third Eye Systems, LLC; Saliha Miller; Burke Hovde; their employees and agents, Respondents - SDO-106-01 - Consent Order and order vacating sdo-70-00

The Securities Division entered into a Consent Order with Respondents Third Eye Systems, LLC, Saliha Miller, and Burke Hovde for alleged violation of the registration and anti-fraud sections of the Washington Securities Act.  The Division alleged that Respondents offered and sold limited liability company units in Third Eye Systems, LLC (Bellingham, WA) for $5,000 per unit to Washington residents, and failed to provide material information about the investment to Washington residents, including the risk factors associated with the investment.  Third Eye Systems is involved in the research and development of software products for the surveillance industry.  Pursuant to the terms of the Consent Order, Respondents agreed to file an offering circular with the Securities Administrator thirty business days prior to making any offer to sell any security undertaken in reliance upon the exemptions found in RCW 21.20.320.  Respondents also agreed to notify all investors of the Order, reimburse the Division $4,000 in investigation costs, and pay $5,000 to the Investor Protection Trust within six months of entry of the order.


Pan American Global Group, Inc.; Peter Pintarics; Hampton Bond Program; Hampton, Broadstone & Oliver, Inc.; and Patrick Pogue; Respondents - SDO-104-01 - Summary Order to Cease and Desist and Revoking Exemptions.

Pan American Global Group, Inc., headquartered in Bellevue, represented on its website that it arranged for funding of business projects by linking businesses with venture capital firms, private investors, and investment banking firms.  One financing program the company offered was the Hampton Bond Program, which was represented as a "self-liquidating" corporate bond program that allowed companies to raise $5 million to $50 million. In addition to paying for the loan, the program was supposed to provide bonus income for four years. Buyers were required to pay up to $100,000 or more in fees to Pan American Global Group. They were told that their loans would be funded if they provided additional information or documentation, but in reality no loans were funded. None of the corporations or individuals named in the order were registered to sell securities in Washington.


Orbit Enterprises, Inc. d.b.a. The Cybergolf Network; Dan Murnan; Michael Burdett; their agents and employees, Respondents. - SDO-102-01- Consent Order and Order Vacating SDO-88-01             

The Securities Division entered into a Consent Order with Respondents Orbit Enterprises, Inc. and Dan Murnan.  The Division alleges that Respondents sold unregistered stock in Orbit to thirty-three Washington residents.  Orbit was formed to provide e-commerce and e-business opportunities for golf industry participants through Internet websites that Orbit controls, such as http://www.cybergolf.com/.  Pursuant to the terms of the Consent Order, Respondents agreed to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act.  Respondents also agreed to file an offering circular with the Securities Administrator thirty business days prior to making any offer to sell any security undertaken in reliance upon the exemptions found in RCW 21.20.320(1), (9), (11), and (17), unless selling only to accredited investors.  Respondents also agreed to notify all investors of the Order and reimbursed the Division $1,500 for its investigation costs in the matter.


Liberty Vending, Co.; and its agents and employees, Respondents. - SDO-101-01 - Consent Order and order vacating sdo-0 22-01

The Securities Division entered into a Consent Order with Respondent Liberty Vending of Salt Lake City, Utah.  The Division had alleged violations of the disclosure document, antifraud, and registration provisions of the Business Opportunity Fraud Act.  Liberty Vending sells vending equipment that enables purchasers to establish a vending business.  Pursuant to the terms of the Consent Order, Respondents agreed to disclose the Order in any business opportunity registration disclosure document approved for use in the state of Washington, and paid the Division $1000 in investigation costs.


Jeanne A. Perkins, respondent - Statement of Charges and Notice of Intent to Issue an Order Suspending Registration and Imposing Fines - SDO-099-01

The Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order Suspending Registrations and Imposing Fines against Respondent Jeanne A. Perkins.  The Division alleges that Respondent engaged in dishonest and unethical practices in the securities business by executing transactions on behalf of a customer without authorization to do so and without first obtaining written discretionary authority from the customer.


Final Order to Cease and Desist issued against Viatical Funding, Inc., Viatical Marketing, Inc., Viatical Funding LLC-III and Viatical Funding LLC- GI-V. - SDO-01-98

On November 20, 2001, John Bley, Director of the Department of Financial Institutions, issued an ENTRY OF FINDINGS OF FACT AND CONCLUSIONS OF LAW AND FINAL ORDER TO CEASE AND DESIST against two Florida companies and two Nevada limited liability companies (LLCs) for violations of the State securities registration and fraud laws. The Department originally issued a statement of charges against the Respondents and former insurance agent Richard Foster in January 1999. In the statement of charges, the Department alleged that the companies had sold investments in LLCs that would be purchasing viatical settlement to at least two Washington residents. Viatical settlements are contracts in which a terminally ill person sells the expected death benefits from an insurance policy in exchange for cash that can be used during the insured's lifetime. The Respondents were charged with offering and selling the investments without registering the offer with the State Securities Division and for failing to disclose all of the material facts of the investment. Viatical Funding, Inc.'s sales agent Richard Foster did not request a hearing and a Final Order was issued by the Securities Division against him in May 1999. The Office of Administrative Hearings conducted the hearing requested by the Respondents. In the Department's Final Order, Bley ordered the Respondents to cease and desist from violations of the state's registration and fraud laws.


Noir-Cygnus Equities, Inc., Harold Woods, Jr., Lynden P. Bridges, and Richard C. Gravett, Respondents - Summary Order to Cease and Desist, revoking exemptions, and notice of intent to impose fines and order affirmative relief - SDO-097-01

On November 20th the Division issued a Summary Order to Cease and Desist against the above-named Respondents for the alleged offer and sale of unregistered securities, violations of the anti-fraud provision, and acting as unregistered broker-dealers and/or salespersons.  The Colorado firm is a development-stage company that intends to invest in subprime automobile loan portfolios using investor money.  The Order enjoins further offers and/or sales, seeks to impose a $20,000 fine, and seeks restitution for all Washington investors.


Mr. Plant, Inc.; Lawrence R. McCarthy; their agents and employees - Summary Order to Cease and Desist - SDO-096-01

The Securities Division entered a Summary Order to Cease and Desist against Respondents Mr. Plant and Lawrence R. McCarthy.  The Division alleges that in connection with their offer of a franchise to a Washington resident via their website, respondents violated the registration and anti-fraud provisions of the Franchise Act.  Respondents were ordered to cease and desist from further violations of the Franchise Act pending a final determination of the outcome of this matter.


Northwest Best Direct, Inc., d.b.a. Spokane's Best Book, d.b.a. Best Book Publications, Vincent E. Bozzi, and Emily G. Bozzi - Summary Order to Cease and Desist, revoking exemptions, and notice of intent to impose fines and order affirmative relief - SDO-095-01

On November 20th the Securities Division issued a Summary Cease and Desist Order against this Spokane magazine business that was allegedly offering and selling unregistered stocks, bonds, and promissory notes.  Offering documents promised high returns with little risk, and failed to disclose material information about the issuers and their business.  The Summary Order imposes injunctive relief to stop the offer and sale of securities, seeks to impose a $20,000 fine, and seeks restitution for injured investors.


Mark G. Crudge, Respondent - SDO-094-01

The Securities Division entered into a Consent Order with Mark Crudge for alleged violations of the Washington Securities Act.  The Division alleged that while employed as a securities salesperson at Merrill Lynch, Crudge engaged in unethical sales practices, including excessive trading, making unsuitable investment recommendations to customers, and executing unauthorized transactions in the accounts of his customers.  Pursuant to the terms of the Consent Order, Crudge’s securities salesperson and investment adviser representative licenses were revoked.  


Orbit Enterprises, Inc. d/b/a The Cybergolf Network; Dan Murnan; Michael Burdett; their agents and employees, respondents – SDO-93-01 – Final Order to Cease and Desist as to Michael Burdett.

 The Securities Division entered a Final Order to Cease and Desist against Respondent Michael Burdett.  The Division alleges that while acting as an agent for Orbit, Burdett sold unregistered stock in Orbit to at least 17 Washington residents.  Orbit was formed to provide e-commerce and e-business opportunities for golf industry participants through Internet websites that Orbit controls.  Burdett failed to request a hearing in the matter, and therefore the Final Order adopts the Findings of Fact and Conclusions of law set forth in the Summary Order as to Burdett. 


Lady of America Franchise Corp.; Roger Wittenberns, William S. Landman; their agents and employees, Respondents - SDO-092-01 - Consent Order.  See also SDO-77-01

The Securities Division entered into a Consent Order with Respondents Lady of America, Roger Wittenberns, and William S. Landman.  The Division had alleged that in connection with their offer of a franchise to a Washington resident, Respondents violated the anti-fraud provisions of the Franchise Act, and had suspended Respondents’ franchise registration.  Pursuant to the terms of the Consent Order, Lady of America agreed to refund the Washington resident $2500 and the Division reinstated their franchise registration.


Cashier, Inc., d.b.a. Can-Stop, Ltd.; Tom Graves; Corporate Funding Group, Inc.; Victor Kivisels; and Donnie Crecelius - Summary Order to Cease and Desist, revoking exemptions, and notice of intent to impose fines and order affirmative relief - SDO-091-01

An undercover sting investigation into Internet and phone fraud has resulted in charges against Cashier, Inc., an Ontario, Canada check cashing firm.  In a Cease and Desist Order the Securities Division alleges that the company violated the Washington State Securities Act by offering unregistered securities.  Cashier is alleged to have used a Florida telemarketing firm, Corporate Funding Group, Inc., to offer Cashier's unregistered securities to Washington citizens.  The allegations include charges that neither the Respondents nor their securities were registered as required; that the Respondents acted as unregistered broker-dealers and salespersons; and that the Respondents made material misrepresentations and omissions in the offer.  The Cease and Desist Order seeks restitution for Washington investors, injunctive relief to prohibit future violations, and fines of $5,000 against each respondent. 


John Patrick McGinn, Jr., and Earned Freedom Investments - Final Order to Cease and Desist, entry of findings of fact and conclusions of law - SDO-090-01  

On October 31, 2001, the Securities Division entered a Final Order to Cease and Desist against John Patrick McGinn, Jr. and Earned Freedom Investments, located in Bellevue, Washington.  The Securities Division alleged that during 1999, McGinn and other EFI representatives conducted public seminars offering investment advice and securities trading for clients.  Neither McGinn nor EFI are registered investment advisors or securities broker-dealers.


Four Vend, Inc., IV Vend, Ken Finney, its agents and employees, Respondents - Summary Order to Cease and Desist - SDO-089-01

 

The Securities Division entered a Summary Order to Cease and Desist against Respondent Finney.  The Securities Division found that in March 2000 Finney advertised in at least one Newspaper in the state of Washington regarding the purchase and placement of Vending Machines in the state of Washington.  At least one Washington resident purchased the vending opportunity as a result of the advertisement.  The Securities Division alleges that the Respondents violated the anti-fraud and disclosure document provisions of the Business Opportunity Fraud Act.


Orbit Enterprises, Inc. d.b.a. The Cybergolf Network, et al. - SDO-088-01

The Securities Division entered a Summary Order to Cease and Desist against Respondents Orbit Enterprises, Inc. (“Orbit”), Dan Murnan, and Michael Burdett.  The Division alleges that Respondents sold unregistered stock in Orbit to thirty-three Washington residents.  Orbit was formed to provide e-commerce and e-business opportunities for golf industry participants through Internet websites that Orbit controls, such as www.cybergolf.com.  The Securities Division alleges that Respondents violated the registration and anti-fraud provisions of the Securities Act.


Dennis Eugene Kluver, Alyn Richard Waage. Tri-West Investment Club, and Haarlem Universal Corporation, Respondents - Final Order to Cease and Desist, entry of findings of fact and conclusions of law - SDO-087-01; SDO-073-01

The Securities Division entered a Final Order to Cease and Desist against Respondent Kluver.  The Securities Division found that between July 2000 and April 2001, Kluver allegedly solicited at least 41 persons to invest at least $195,000 in fictitious securities.  Over that same time period, Kluver collected at least $65,611.18 in payments for his solicitations.  Such payments were represented as interest payments when, in fact, they consisted of the funds of other investors.  Kluver’s actions constituted violations of the registration and anti-fraud provisions of the Securities Act. 


Clairmont Capitol, Inc.; Geoffrey L. Mann, Charles W. Trench, and Shannon D. Staats, Respondents. - SDO-086-01 - Final Consent Order to Cease and Desist, vacating Summary Order SDO 016-01

On January 8, 2002, Securities Administrator Deborah Bortner entered into a final Consent Order with Clairmont Capitol, Inc.  (See SDO-086-01)  The Consent Order resolves a Summary Order entered May 5, 2001 against Clairmont, Geoffrey L. Mann, Charles W. Trench, and Shannon D. Staats.  (See SDO 016-01)  The Order alleges the Colorado firm violated Washington's Commodity Transactions Act by soliciting Washington investors to invest in foreign currency option contracts.  In fact, Clairmont was not registered as a commodities broker-dealer and never placed any trades on a board of exchange.  Instead, Clairmont took a position opposite its customers and let the option expire worthless.  According to the Commodities Futures Trading Commission, which also brought an action against Clairmont, investors lost 100% of their investment 100% of the time.

Clairmont paid $5,000 in restitution to one injured Washington investor, $1,000 in costs and fees to the Department, and agreed to the imposition of a $10,000 fine, with the entire amount suspended based on future compliance with the Consent Order.  The company agreed to comply with the Commodity Transaction Act and the Division vacated the Summary Order.  Washington investors are cautioned to watch out for claims of easy money in the foreign currency exchanges.  Most of the time, the offers are fraudulent.  (To see a copy of the CFTC's Complaint and Press Release, go to CFTC.)


U.S. Recycling Corporation, Metals Recycling Depot, Inc., Gregory G. White, John H. Malmrose, and Todd A. Simon, Respondents. - SDO-084-01 - Consent Order to Cease and Desist and Vacating Summary Order SDO-028-01

On April 30, 2001, the Securities Division issued a Summary Cease and Desist Order against the owners of a Florida-based recycling company that allegedly used telemarketing to offer and sell its unregistered securities.  The firm made the mistake of calling an undercover "mooch" line staffed by an investigator for the Division.  Offering documents revealed numerous material misrepresentations and omissions, including use of a forged bank reference letter.  On November 7, the Administrator entered into a Consent Order with the Respondents vacating the Summary Order and closing the case.  The terms of the Consent included an admission of the violations, injunctive relief, payment of $5,000 for partial reimbursement of the costs of the investigation, and imposition of a $25,000 fine, with $20,000 suspended based upon future compliance.


Consumer Services, its agents and employees, Respondents - SDO-081-01 - Findings of fact and Final Order to Cease and Desist.  See also SDO-039-01

 

The Securities Division entered a Final Order to Cease and Desist against the above named Respondent.  The Division alleges that Respondent violated the disclosure document, antifraud, and registration provisions of the Business Opportunity Fraud Act through the offer of their envelope stuffing business opportunity.  After the Division entered a Summary Order (SDO-039-01) against the company, Respondent submitted a statement for consideration of the Securities Administrator in lieu of requesting an administrative hearing.  Finding no basis in the statement for a vacation or modification of the Summary Order, the Division entered a Final Order against the company.


Republic Cash Advance, Inc., Quick Cash Advance, Inc., Corporate Asset Group; Ould Investment Group, Curtis J. Billups, and others - Summary Order to Cease and Desist, revoking exemptions, and notice of intent to impose fines and order affirmative relief - SDO-080-01; SDO-082-01; SDO-083-01

On October 17, the Securities Division issued three related cease and desist orders against Florida telemarketing firms that had been preying on Washington investors.  Republic Cash Advance was allegedly offering and selling two different types of unregistered securities: membership units in limited liability companies offering check cashing services, and investment contracts in account receivables (the customer checks cashed at those check cashing stores).  In addition to operating its own boiler rooms, Republic hired at least two independent sales offices (ISOs) to market their securities.  Salespeople from Corporate Asset Group were offering and selling the membership units, while Ould Investment Group offered the account receivable contracts.  The sales pitch failed to mention that Republic and its president, Billups, had been subject to cease and desist orders from other states, and that the check cashing industry faces significant risks.  The Order against Republic seeks injunctive relief, restitution to injured investors, and a $50,000 fine.  The Orders against Corporate Asset Group and Ould Investment Group seek injunctive relief and fines of $10,000.


Lady of America Franchise Corp.; Roger Wittenberns; William S. Landman; their agents and employees - SDO-077-01

The Securities Division entered a Summary Order to Cease and Desist and Suspending Effectiveness and Notice of Intention to Revoke Effectiveness against Lady of America, Roger Wittenberns, and William S. Landman.  The Division alleges that in connection with their offer of a franchise to a Washington resident, Respondents violated the anti-fraud provisions of the Franchise Act.  Lady of America’s franchise registration was suspended pending a final determination of the outcome of this matter.


William Brotherton; International Business Consortium; their agents and employees - SDO-076-01 - Final Order to Cease and Desist, Findings of Fact and Conclusions of Law.  (See  SDO-057-01)


Nu West, Inc., George E. Frey, and Donald W. Jones, Respondents - SDO-075-01 -Consent Order to Cease and Desist and vacating Summary Order SDO-87-00 as to Respondent Nu West, Inc.

On October 25, 2001, the Securities Division issued a Summary Cease and Desist Order against Nu West, Georg Frey, and Donald Jones.  The Summary Order alleged that the Respondents had offered and sold unregistered mortgage paper securities.  Shortly thereafter, the business was revealed as a Ponzi scheme, Georg Frey committed suicide, and Nu West was placed in the hands of a receiver.  On November 20, the Division entered into a Consent Order with the Receiver for Nu West, former Chief Justice Richard P. Guy.  On November 30, the Division entered into a Consent order with Donald Jones.  Both Orders include admissions as to the violations charged in the Summary Order.


D & D Global Enterprises, its agents and employees, Respondents - SDO-074-01 - Consent Order and Order vacating SDO-24-00

The Securities Division entered into a Consent Order with Respondent D & D Global Enterprises of Austin, Texas.  The Division had alleged that Respondents were offering an unregistered business opportunity involving payment for work at home envelope processing.  Respondents allegedly failed to provide complete material information about the company or the envelope processing opportunity.  Pursuant to the terms of the Consent Order, Respondents agreed to disclose the Order in any business opportunity registration disclosure document approved for use in the state of Washington for a period of 5 years, and paid the Division $500 in investigation costs.


Dennis Eugene Kluver, Alyn  Richard Waage, Tri-West Investment Club, and Haarlem Universal Corporation; Summary Order to Cease and Desist - SDO-073-01

The Securities Division entered a summary order to cease and desist against Dennis Eugene Kluver, Alyn Richard Waage, Tri-West Investment Club, and Haarlem Universal Corporation in connection with the offer and sale of prime bank instruments.  The Securities Division charged violations of the registration and anti-fraud provisions of the Securities Act.  The Securities Division is continuing to investigate the practices of Respondents to determine the full extent of the violations of the Securities Act that have occurred in this matter.


Zeotech Mining, Inc; Clifford K. Wood; their agents and employees; Final Order to Cease and Desist - SDO-072-01; also see SDO-066-01, Summary Order to Cease and Desist

The Securities Division issued a Final Order to Cease and Desist against Respondents Zeotech Mining, Inc. and Clifford K. Wood.  Respondents allegedly solicited investors via the Internet for investment funds in exchange for stock in the company.  Zeotech was allegedly formed for the purpose of mining and selling bentonites, diatomaceous earth and zeolites from deposits in Grant County, Washington.  The Summary Order had charged Respondents with violating the registration and anti-fraud provisions of the Securities Act.  Respondents failed to request a hearing in the matter, and therefore the Final Order adopts the Findings of Fact and Conclusions of law set forth in the Summary Order.


Ceiling Pro International Incorporated; Brad Matushak; their agents and employees; Entry of Findings of Fact and Conclusions of Law and Final Order to Cease and Desist - SDO-071-01 (also see SDO-060-01)

The Securities Division entered a Final Order to Cease and Desist against Ceiling Pro International Incorporated and Brad Matushak.  The Summary Order had charged Ceiling Pro and Matushak with selling franchises without being registered to do so and without providing offerees with the proper disclosure.  Respondents failed to request a hearing in the matter, and therefore the Final Order adopts the Findings of Fact and Conclusions of law set forth in the Summary Order.


World-Wide Currency Services Corp.; Jamie Duncanson; George Spivak; Stephen Berg; their employees and agents - SDO-070-01

The Securities Division entered a Summary Order to Cease and Desist against World-Wide Currency Services Corp., Jamie Duncanson, George Spivak and Stephen Berg.  The Respondents allegedly solicited individuals, via the internet, to make investments in foreign currencies.  The Summary Order had charged World-Wide, Duncanson, Spivak and Berg with violating the registration provision of the Commodities Act.  The Summary Order also charged Spivak and Berg with violating the anti-fraud provision of the Commodities Act.


Kelly Ruggles, d.b.a. American Reliance Group - SDO-069-01  (See also SDO-064-01)

The Securities Division entered a Consent Order against Respondent Kelly Ruggles, suspending his investment advisor and securities salesperson licenses for 30 days and imposing a fine of $5,000.  Ruggles offered and sold securities in the form of units of Alliance Leasing Corporation’s equipment leasing program interests to an investment advisory client, an 87 year-old widow.  Ruggles made numerous misrepresentations and omissions of material fact regarding the investment, including, but not limited to, the fact that the United States District Court for the Southern District of California had already determined that Alliance’s owners and agents raised over $46,000,000 from more than 1,500 investors throughout the United States through the fraudulent sale of unregistered equipment leasing investments in Alliance, and the fact that the State of Mississippi had issued a Summary Cease and Desist Order against Alliance Leasing Corporation alleging fraud in connection with the offer and sale of units in its equipment leasing program.  Ruggles also failed to disclose the fact that he was not registered with the state of Washington as a securities broker-dealer or securities salesperson at the time of the offer and sale of the Alliance Leasing interests to Mrs. Broderick.


East-West Investment Corporation; Washington Stocks and Currency Investment Corporation; Viet V. Dang, its agents and employees; Entry of Findings of Fact and Conclusions of Law and Final Order to Cease and Desist - SDO-068-01

The Securities Division issued a Final Order to Cease and Desist against Respondents East-West Investment Corporation, Washington Stocks and Currency Investment Corporation and Viet V. Dang.  Respondents allegedly solicited investors through advertisements placed in a Washington based newspaper.  The Summary Order had charged Respondents with violating the registration and anti-fraud provisions of the Securities Act.  Respondents failed to request a hearing in the matter, and therefore the Final Order adopts the Findings of Fact and Conclusions of law set forth in the Summary Order. 


The Nalanda Group, Inc. d.b.a. Autosense International; G.S. Satya; State Ignition Interlock Services, LLC; Thomas Parmenter; their agents and employees - SDO-067-01 - Consent Order and order vacating SDO-36-01

The Securities Division entered into a Consent Order with the above named Respondents.  The Division alleged that Respondents had violated the registration and anti-fraud provisions of the Franchise Act by offering unregistered franchises involving the sale and distribution of ignition interlock systems.  Respondents agreed to comply with the registration provisions of the Franchise Act and paid $1500 in investigation costs.


Zeotech Mining, Inc; Clifford K. Wood; their agents and employees - Summary Order to Cease and Desist - SDO-066-01 (see SDO-072-01)


Kelly Ruggles, d.b.a. American Reliance Group - SDO-064-01 (See SDO-069-01)


ByteAudio.com, Inc.; Frank M. Dolney; Robert M. Fletcher; and Fred C. Kriss - SDO-063-01 (also see SDO-021-01)

On September 4, 2001, Securities Administrator Deborah Bortner issued final orders against two Florida firms charged with offering and selling unregistered securities in Washington.  The Orders are significant in that they seek fines totaling $100,000 as well as imposing injunctive relief and ordering restitution.

In the case against ByteAudio.com, Inc., the Division issued a final order against Byte's President, Robert M. Fletcher.  (The Division's cases against the firm and other respondents are continuing.)  The order charges Fletcher with violating the registration and anti-fraud provisions of the Securities Act.  Fletcher is liable for a $50,000 fine and has been ordered to pay restitution to Washington investors.

A copy of the summary order, SDO-021-01, which includes the findings of fact and conclusions of law, is also available online.


Undertaking and agreement signed with Preferred Funding, Inc., a Mortgage Broker-Dealer in Kirkland, WA - SDO-061-01  in settlement of matters relating to  SDO-054-01

The Securities Division entered into an Undertaking with Preferred Funding, Inc. (“Preferred”), a mortgage broker-dealer, to resolve allegations of willful and repeated violations by Preferred, including disbursement of funds prior to recording investor’s security interests in which investors were left unsecured for periods of over four weeks, the offer and sale of interests in construction loans to 48 investors without approval of the administrator, and the sale of construction loans having excessive loan to value ratios, some as high as 110%.  Pursuant to the terms of the Undertaking Preferred undertakes not to willfully violate Securities Rules relating to the recordation of investor security interests, investor suitability questions and construction loans and agreed to pay $5,000 to the Securities Division to defray the costs and expenses associated with this matter.  Preferred also agreed to pay an additional $5,000, covering costs of the 12 month follow-up compliance examination if the examination results in a letter notifying Preferred that it is in material non-compliance with the terms of the Undertaking. 


William Brotherton; International Business Consortium; their agents and employees - SDO-057-01

The Securities Division issued a Summary Order to Cease and Desist against International Business Consortium and William Brotherton. Respondents allegedly solicited investors via the Internet and accepted cash investments for shares of stock without taking proper registration measures or providing adequate disclosures. The Securities Division charged violation of the registration and anti-fraud provisions of the Securities Act.


Barbara E. Ferguson; Juliann M. Smith; Gourmetluxe Corporation; their agents and employees - SDO-056-01

The Securities Division issued a Summary Order to Cease and Desist against Gourmetluxe, Inc., Barbara Ferguson and Juliann Smith. Respondents allegedly sold stock in Gourmetluxe, Inc. without proper disclosure or registration. The Securities Division charged violations of the registration and anti-fraud provisions of the Securities Act.


Golden Ag of Whitman, Inc.; Whitman County Straw, LLC - SDO-055-01

The Securities Division entered into a Consent Order with Golden Ag of Whitman County & Whitman County Straw, LLC in which the two entities agreed and were ordered to comply with the registration and anti-fraud provisions of the Securities Act. Whitman County Straw LLC offered and sold unregistered limited liability company interests to investors for the purpose of constructing a straw products manufacturing facility.  Golden Ag of Whitman County offered stock to Washington residents.


Tri-Ject International Corporation; Peter Lemin; their employees and agents - SDO-051-01

The Securities Division issued a Summary Order to Cease and Desist against Tri-Ject International, Inc. and its founder Peter G. Lemin.  The Securities Division alleged violations of the registration and anti-fraud provisions of the Securities Act.


JEI America, Inc., d.b.a. JEI Learning Centers - SDO-050-01

On July 6, 2001, the Securities Division entered Consent Order SDO-050-01 with JEI America, Inc. to resolve the concern that it had violated the registration requirement provision of the Franchise Investment Protection Act.  JEI America, Inc. is a seller of franchises for the operation of neighborhood tutorial or supplemental education classes in such subjects as mathematics, Korean, Chinese Characters, and English.  The company agreed to comply with that registration requirement in the future and reimbursed the Division $200 for costs of investigation.


East-West Investment Corporation; Washington Stocks and Currency Investment Corporation; Viet V. Dang; their employees and agents - SDO-049-01

The Securities Division entered a summary order to cease and desist against East-West Investment Corporation, Washington Stocks and Currency Corporation and Viet V. Dang.  The Securities Division charged violations of the registration and anti-fraud provisions of the Securities Act.


Terrence R. Sprague, Statement of Charges and Notice of Intent to Issue an Order Suspending Registration and Imposing Fines - SDO-048-01

On August 1, 2001, the Division issued a Statement of Charges against Terrence Sprague of Seattle for alleged violations involving the offer and sale of brokered certificates of deposit.  Mr. Sprague, a representative with US Bancorp, sold these "callable" CDs to 33 investors during a one-year period; 11 of those purchasers later complained of misrepresentations and failure to disclose.  In particular, complainants alleged that Sprague misrepresented the similarity of callable CDs to regular CDs, failed to disclose that the callable CDs did not mature for 20 years, and made unsuitable investment recommendations.  The Statement of Charges seeks a six-month suspension of Sprague's license and the imposition of a $50,000 fine.


Arnold Arms Co., Inc. and Douglas E. Arnold - SDO-046-01

The Securities Division entered a statement of charges and notice of intent to order the named Respondents to each permanently cease and desist from allegedly violating the registration provisions of the Securities Act of Washington.


General Marketing Associates, Inc. - SDO-044-01

On June 20 the Division entered a Summary Order to Cease and Desist against General Marketing, its president, Alan Davis, and Steven Chausse, a salesperson, for alleged violations of the Securities Act. 


Kenneth Krull - SDO-43-01

The Securities Division entered into a Consent Order with the above named Respondent to resolve licensing issues arising from Respondent’s violation of mutual fund switching regulations.


Tri-Tron Global Manufacturing Co., Inc., Ron Ewart -   SDO-042-01

The Securities Division entered a final order to cease and desist against Tri-Tron Global Manufacturing Co., Inc., Tri-Tron Global, Inc., Tri-Tron Images Corp., and Ron Ewart. 


Ship Ensure - SDO-041-01

The Securities Division entered a summary cease and desist order against the above parties for alleged violations of the registration and anti-fraud provisions of the Securities Act. 


Inland Northwest Capital Consultants; Deltech Capital, LLC; Vance McFarland; their employees and agents - SDO-040-01

The Securities Division entered a summary order to cease and desist against Vance McFarland, Deltech Capital, LLC and Inland Northwest Capital Consultants in connection with the offer and sale of promissory notes to purchase Historical Bonds.  The Securities Division charged alleged violations of the registration and anti-fraud provisions of the Securities Act.  The Securities Division is continuing to investigate the practices of Respondents to determine the full extent of the violations of the Securities Act that have occurred in this matter.


Consumer Services, its agents and employees - SDO-39-01

The Securities Division entered a Summary Order to Cease and Desist, naming the above party for alleged violations of the disclosure document, antifraud, and registration provisions of the Business Opportunity Fraud Act.


Payday Today USA.com, Inc., and its president, David E. L'Hoir - SDO-038-01 (final order) and SDO-037-01 (summary order including findings of fact and conclusions of law)

In Payday Today USA.com, Inc., the Division issued a final order against the firm and its president, David E. L'Hoir.  The order charges Payday with violating the registration and anti-fraud provisions of the Securities Act.  The Respondents are jointly liable for a $50,000 fine and were ordered to pay restitution to Washington investors.


Nalanda; Parmenter - SDO-036-01

The Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, naming the above parties for alleged violations of the registration and antifraud provisions of the Franchise Act. 


Gseco - SDO-035-01

The Securities Division entered a Final Order to Cease and Desist against GSECO and its agents and employees for alleged violations of the disclosure document, antifraud, and registration provisions of the Business Opportunity Fraud Act.


Resonance Capital Management, LLC - SDO-34-01

The Securities Division entered into an Undertaking and Agreement with Resonance Capital Management, LLC, a federal covered adviser, to resolve licensing and registration issues


Caller I-C - SDO-33-01

The Securities Division entered a Statement of Charges and Notice of Intention to Enter Order to Cease and Desist against the above named Respondents for alleged violations of the Washington Securities Act.


Deren Wolfe, d.b.a. A.J. Investment Group - SDO-030-01

Deren Wolfe Engaged in a Scheme to Defraud Investors - On April 19, 2001, Securities Director Bortner entered a Final Order to Cease and Desist against Deren Wolfe and his company, A.J. Investment Group.  The default order includes conclusions of law finding Wolfe offered and sold unregistered securities, acted as an unregistered securities salesperson, investment advisor, or broker-dealer, and engaged in a scheme to defraud investors.  A copy of the Summary Order on which the final order is based is available at SDO-112-00.


Ident-A-Kid - SDO-29-01

On March 22, 2001 the Division entered a Summary Order to Cease and Desist alleging Ident-A-Kid and its President, Robert King, violated the Business Opportunity Fraud Act.  Ident-A-Kid offers and sells a home-based business involving the marketing, manufacture, and sale of laminated identification cards for children.  The Order prohibits Ident-A-Kid and King from violating the registration and anti-fraud provisions of the Act.


Elizabeth Kelsey - SDO-27-01 

The Securities Division issued  temporary cease and desist order against Elizabeth Kelsey alleging securities fraud and acting as a securities salesperson without being properly registered.


Kevin L. Lawrence and Health Maintenance Centers, Inc., their employees and agents - SDO-26-01

The Securities Division entered a Summary Order to Cease and Desist against Health Maintenance Centers, Inc. (HMC) and Kevin Lawrence for alleged violations of the Securities Act of Washington.  HMC and Lawrence offered and sold to investors HMC stock that was not registered with the Securities Division. HMC and Lawrence allegedly told investors that they would be able to exchange 1 share of HMC for 4 shares of Znetix, Inc.  HMC and Lawrence misled investors by telling them that Znetix would be going public in several months. They also failed to provide investors with a prospectus and material information such as financial statements.


Tri-Tron Global - SDO-025-01

The Securities Division entered a summary order to cease and desist against Tri-Tron Global Manufacturing Co., Inc., Tri-Tron Global, Inc., Tri-Tron Images Corp., and Ron Ewart.  The Securities Division charged violations of the registration and anti-fraud provisions of the Securities Act.


Coastal Publications - SDO-023-01

On March 30, 2001, the Securities Division entered Summary Order to Cease and Desist SDO-023-01 against Coastal Publications for violation of the Business Opportunity Fraud Act disclosure document, antifraud, and registration provisions. Coastal Publications is the seller of an opportunity involving payment for in-home mail processing.


Liberty Vending - SDO-022-01

The Securities Division entered a Summary Order to Cease and Desist naming Liberty Vending for alleged violations of the disclosure document, antifraud, and registration provisions of the Business Opportunity Fraud Act.


Respondents: byteaudio.com, Inc., Frank M. Dolney, Robert M. Fletcher, and Fred C. Kriss - SDO-021-01   (see SDO-063-01 above)


Jorge Alejandro - SDO-20-01

The Securities Administrator issued a Final Order to Cease and Desist against Jorge Alejandro, an Issaquah resident and convicted felon, who allegedly violated the anti-fraud provisions in the sale of promissory notes to two investors.


Ident-A-Kid Services of America, Inc - SDO-19-01

On March 22, 2001 the Division entered a Summary Order to Cease and Desist alleging Ident-A-Kid and its President, Robert King, violated the Business Opportunity Fraud Act. 


Crown Meridian - SDO-018-01

The Securities Division entered a Summary Order to Cease and Desist against Crown Meridian Bank and Janet Carter for violations of the Securities Act of Washington. 


Stephen Pedersen, Secure Capital Short Term Asset Trust I  - SDO-17-01       

The Securities Division entered a final order to cease and desist against Stephen Pedersen and Secure Capital Short Term Asset Trust I, a business trust.   


Clairmont Capital Corp., a Colorado Corporation, Geoffrey L. Mann, Charles W. Trench, and Shannon D. Staats - SDO-016-01 - Summary Order to Cease and Desist


Gibraltar Enterprises; Richard Salter; Brian Moore, its agents and employees - SDO-14-01

The Securities Division entered a Summary Order to Cease and Desist naming Gibraltar Enterprises for alleged violations of the disclosure document, antifraud and registration provisions of the Business Opportunity Fraud Act. 


National Communications Marketing, Inc.; Stephen Wolfe; ETS Payphones, Inc.; Charles E. Edwards; Glen L. Ottmar; Earl C. Dennis; their agents and employees - SDO-12-01

The Securities Division entered Summary Order to Cease and Desist SDO-012-01 against the named parties for alleged violations of the Washington Securities Act.


Dorsey E. Rowan, Jr. - SDO-011-01

On July 27, 2001, the Securities Division charged Dorsey E. Rowan, Jr., of Seattle with violations of the antifraud, suitability, and registration provisions of the Securities Act.  Rowan, a securities broker with Pacific West Securities, Inc., sold more than $2 million in unsuitable Nu West securities to his customers.  The Division has charged both Pacific West (SDO-005-01) and Nu West (SDO-87-00) in separate actions. 


Sandra Lucille Crist, SanMar & Associates, Inc. and Robert Xavier Ayer -   SDO-10-01

The Securities Division issued a final cease and desist order against Crist and SanMar for allegedly offering and selling more than $2 million worth of unregistered securities to at least 35 investors in order to finance high-interest, short-term business loans. 


Jeffrey Beneson - SDO-09-01

The Securities Division entered a final order to cease and desist against Jeffrey Beneson for alleged violations of the Washington Securities Act.


Lennox Investment Group, Ltd; Randall W. Law; Standard Capital Group; Monica Iles -   SDO-08-01

The Securities Division entered a final order to cease and desist against Lennox Investment Group, Ltd.; and its president, Randall Law; and against Standard Capital Group and its president, Monica Iles; in connection with the sale of a prime bank investment program. 


 Maui Wowi Marketing, Inc. - SDO-07-01

On January 30, 2001, the Division entered Consent Order SDO-007-01 with Maui Wowi Marketing, Inc., which is involved in the marketing and distribution of fruit smoothies or fruit drinks and other products, to resolve the concern that the franchisor had violated the registration requirement provision of the Franchise Investment Protection Act. 


Mayer Etkin and Capital Solutions, Inc.     - SDO-06-01

The Securities Division entered a summary order to cease and desist against Mayer Etkin and Capital Solutions, Inc. for alleged violations of the Securities Act of Washington. 


Pacific West Securities, Inc. and Lorretta N. Elderkin - SDO-005-01

On July 27, 2001, the Securities Division charged Pacific West Securities, Inc. of Kent with failure to supervise a securities broker who sold more than $2 million in unsuitable securities to his customers.  The broker, Dorsey E. Rowan, Jr., was charged in a separate action with offering and selling Nu West securities that were not registered with the Division.  The Division has charged both Rowan (SDO-011-01) and Nu West (SDO-87-00) in separate actions. 


Jorge Alejandro d.b.a. J&L Associates - SDO-04-01

Jorge Alejandro, an Issaquah resident, allegedly violated the anti-fraud provisions in the sale of promissory notes to two investors.


Highland Mining Inc.; Midas Mining, LLC; Russell Byers; Robert Engleman - SDO-02-01

The Securities Division entered a Final Order to Cease and Desist against the above parties for alleged violations of the Washington Securities Act.


Jerry A. Martin; Martin Investment Firm; their employees and agents, SDO-116-00


Armaguard Coatings, Inc., d.b.a. Ameraguard - SDO-115-00

On December 26, 2000, the Securities Division entered Consent Order SDO-115-00 to resolve the concerns that the company offered and sold two franchises in the state of Washington in violation of the registration and disclosure document provisions of the Franchise Investment Protection Act.


Auction Network, LLP, Auction Management Ltd - SDO-114-00 

On December 13, 2000, the Securities Division entered a Final Order to Cease and Desist against the above parties for alleged violations of the Washington Securities Act


Satellite Partners, Inc. - SDO-113-00

On December 13, 2000, the Securities Division entered a Final Order to Cease and Desist against Satellite Partners, Inc. d/b/a Satellite Capital Group II, Virtual Vegas, LLC, and Made by Kiddies, Inc. for alleged violations of the Washington Securities Act. 


Deren Wolfe, d/b/a/ A.J. Investment Group - SDO-112-00

The Securities Division entered a Summary Order to Cease and Desist against Deren Wolfe, d/b/a/ A.J. Investment Group for alleged violations of the Securities Act. 


Micro-Budget Video Features IX and Donald G. Jackson - SDO-111-00

On December 13, 2000, the Securities Division entered a Statement of Charges against Micro-Budget Video Features IX and Donald G. Jackson for alleged violations of the Washington Securities Act. 


Poochie's, a business; Stan Sixkiller; Vandie Sixkiller - SDO-110-00


Jerry A. Martin; Martin Investment Firm; their employees and agents, - SDO-108-00

On November 17, 2000, the Securities Division entered a Summary Order to Cease and Desist against Jerry A. Martin d.b.a. Martin Investments for alleged violations of the Washington Securities Act.


Highland Mining, Inc.; Midas Mining, LLC; Russell Byers; Robert Engleman - SDO-105-00

On November 7, 2000, the Securities Division entered a Summary Order to Cease and Desist against the above parties for alleged violations of the Washington Securities Act.


CP Franchising, Inc., d.b.a. Cruise Planners - SDO-103-00

On October 31, 2000, the Securities Division entered Consent Order SDO- 103-00 to resolve the concern that the company offered and sold franchises in violation of the registration provisions of the Franchise Investment Protection Act.


Mark G. Crudge - SDO-101-00

On November 1, 2000, the Securities Division entered a Summary Order against Mark Crudge for alleged violations of the Washington Securities Act.


Atlas Vending and Locating, John B. Peterson - SDO-100-00

On October 23, 2000, the Securities Division entered Summary Order to Cease and Desist SDO-100-00 against the Respondents for violation of the Business Opportunity Fraud Act disclosure document, antifraud, and registration provisions.


Sandra Lucille Crist, SanMar &Associates, Inc. and Robert Xavier Ayer - SDO-99-00

On October 25, 2000, the Securities Division entered a summary cease and desist order against Crist and SanMar for allegedly offering and selling more than $2 million worth of unregistered securities.


BLW, LLC (a former limited liability company) and Arthur D. Bird - SDO-98-00

The Securities Division entered into a consent order with Arthur D. Bird and BLW, LLC in which Bird and BLW, LLC agreed not to violate the registration and anti-fraud provisions of the Securities Act of Washington and Bird agreed not to violate the broker-dealer and salesperson registration provisions of the Act.


Auction Network, LLP; Auction Management, LTD; Russell W. Quick; Bill Porter; and their agents and employees- SDO-97-00

On September 29, 2000, the Securities Division entered a Summary Order to Cease and Desist against the above parties for alleged violations of the registration and anti-fraud provisions of the Washington Securities Act.


Steven Baker Valentine and CSS Funding Inc. - SDO-94-00

The Securities Division entered a Summary Order to Cease and Desist against Valentine and CSS Funding for alleged violations of the registration and anti-fraud provisions of the Washington Securities Act.


Jeffrey Beneson - SDO-93-00

The Securities Division entered a statement of charges against Jeffrey Beneson for alleged violations of the Washington Securities Act. 


Relativity Productions LP - SDO-92-00

On October 23, 2000, the Securities Division entered into Consent Order SDO-92-00 with Respondents Peter Wick and Relativity Productions LP to resolve allegations that they had violated the registration and anti-fraud provisions of the Securities Act of Washington.


Ski-Free Watersports, Inc.; Solo Watersports, Inc. ; Robin Lynn Sells - SDO-91-00

On October 9, 2000, the Securities Division entered a Statement of Charges against Robin Sells, Ski-Free Watersports, and Solo Watersports for violations of the registration and anti-fraud provisions of the Securities Act of Washington.


SDO-90-00

On August 31, 2000, the Securities Division entered a Consent Order with the Respondents to resolve allegations contained in a Summary Order to Cease and Desist entered in July, 2000.


James E. Lake, American Freedom International - SDO-88-00

The Securities Division entered a final order to cease and desist against James E. Lake and American Freedom International of Kent, Washington in connection with the sale of stock in American Freedom International.


Nu West, Inc. - SDO-87-00

On October 25, 2000, the Securities Division issued a Summary Cease and Desist Order against Nu West, its President, Georg Frey, and a salesperson, Donald Jones.  The Order alleges that Frey and Jones violated the antifraud and registration provisions of the Securities Act.  Since the order was issued, it has come to light that many of the promissory notes sold by Frey and Jones had been forged.  It appears that as many as 250 investors may have lost $50 million dollars or more.  In related actions, the Division issued charges against Dorsey Rowan, a broker who sold the Nu West securities (SDO-011-01), and Pacific West Securities, Inc. (SDO-005-01) 


Bruce R. Troxell d/b/a Mountain Top Pictures - SDO-86-00

On August 28, 2000, the Securities Division entered into Consent Order SDO-86-00 with the Respondent to resolve allegations that he had violated the registration and anti-fraud provisions of the Securities Act of Washington.


Laurence Gale Epstein - SDO-85-00

The Securities Division entered a final order to cease and desist against Epstein, a former registered securities salesperson, for allegedly offering and selling more than $100,000 worth of unregistered securities and for failing to disclose the risks of the investments.


Woodstock Securities, Ltd., Rodney Alain, Carol Lawson - SDO-84-00

On March 28, 2001 the Division entered into a Consent Order with Woodstock Securities, Ltd., Rodney Alain, and Carol Lawson, all of Calgary, Alberta, Canada. The Order alleges that Respondents raised $590,000 selling promissory notes to investors by promising big returns when the company went public. In resolving the case, the Respondents admitted to violating the Securities Act, agreed to comply with the law in the future, and agreed to provide refunds to investors. In addition, Alain paid a $4,000.00 fine; Lawson agreed to a $2,000.00 fine (suspended); and the firm paid $2,000.00 in costs.


BLW, LLC; Arthur D. Bird, Paul A. Webber - SDO-83-00

The Securities Division issued a statement of charges and notice of intent to order to cease and desist against BLW, LLC; Arthur D. Bird, and Paul A. Webber. The statement of charges alleges as follows: BLW, LLC was created by Bird in order to purchase an interest in a credit card clearing operation.


Expansion Capital Management, Inc., and Michael Josef Meyer, - SDO-82-00


Dynaquest Corporation, Association of Certified Liquidators, Mitch Klass - SDO-81-00

The Securities Division entered a Final Order to Cease and Desist against the Respondents in connection with their solicitation of Washington residents to purchase a business opportunity entitled "Liquidate Your Way to a Fortune."


Archibald Oil & Gas Operations, Inc., Brian Van Horn, Joseph Van Horn - SDO-80-00

The Securities Division entered Summary Order to Cease and Desist SDO-80-00 alleging Respondents violated the securities registration, antifraud, and broker-dealer or salesperson registration provisions of the Securities Act of Washington.


Ergonomic Consulting Services, Inc. d/b/a COFFEE NEWS USA; Bill Buckley; their agents and employees,   -  SDO-79-00

On September 22, 2000, the Securities Division entered into a Consent Order with the above parties to resolve allegations that they had violated the registration provision of the Franchise Act.


Best Buy Merchandise, Inc., d.b.a. Watches, Watches, Watches - SDO-78-00

On July 25, 2000, the Securities Division entered Consent Order SDO-78-00 to resolve the concerns that the company offered and sold franchises in violation of the registration and disclosure document provisions of the Franchise Investment Protection Act.


PTM Holdings, Inc. d/b/a The Rock Island Private Retirement Plan, Richard Peteroli, John Melcher IV - SDO-76-00

On August 15, 2000, the Securities Division entered into Consent Order SDO-76-00 with the Respondents to resolve allegations that they had violated the registration and anti-fraud provisions of the Securities Act of Washington.


Icon Trading, Inc., First Americap, Corp. et al. - SDO-75-00

On July 19, 2000, the Securities Division entered a Summary Order against a California extreme sporting good firm, Icon Trading, and its unregistered broker dealer from Texas, First Americap.


Alvin L. McGill - SDO-74-00

The Securities Division entered into a Consent Order with Alvin L. McGill, a registered securities salesperson, for alleged dishonest and unethical practices in violation of the Securities Act.


John P. McGuinn Jr., Earned Freedom Investments - SDO-73-00


Laurence Gale Epstein - SDO-72-00

The Securities Division entered a Summary Order to Cease and Desist against Epstein, a former registered securities salesperson, for allegedly offering and selling more than $100,000 worth of unregistered securities and for failing to disclose the risks of the investments.


Lee Douglas Tusberg, Trans-Link Research and Development Group, Inc. - SDO-71-00

The Securities Division entered Findings of Fact and Conclusions of Law and Final Order To Cease and Desist and Revoking Securities Salesperson Registration against Lee Douglas Tusberg and Trans-Link Research & Development Group, Inc.


Third Eye Systems, LLC - SDO-70-00

The Securities Division entered Summary Order to Cease and Desist SDO-70-2000 naming Third Eye Systems, LLC, Saliha Miller, and Burke Hovde for alleged violation of the registration and anti-fraud sections of the Washington Securities Act. Respondents offered and sold limited liability company units in Third Eye Systems, LLC for $5,000 per unit to Washington residents.


Satellite Partners, Inc. - SDO-69-00

The Securities Division entered Summary Order to Cease and Desist SDO-69-2000 naming Satellite Partners, Inc. d/b/a Satellite Capital Group II, Virtual Vegas, LLC, Made by Kiddies, Inc., Silvia Z. Reyes, John Temple, Richard Hines, W. Steven Temple, and Ron Carter for alleged violation of the registration and anti-fraud sections of the Washington Securities Act.


Dynaquest Corporation - SDO-68A-00

The Securities Division entered Summary Order to Cease and Desist SDO-68A-2000 naming Dynaquest Corporation, Association of Certified Liquidators, and Mitch Klass for alleged violations of the disclosure document, antifraud, and registration provisions of the Business Opportunity Fraud Act.


Robert Scott Tolson ; Constance G. Tolson; Cruisers Manufacturing, Inc. - SDO-66-00


Outdoor Lighting Perspectives Franchise Corporation - SDO-65-00

Outdoor Lighting Perspectives, a North Carolina corporation, agreed to enter into a consent order with the Securities Division on June 6, 2000 and agreed to refrain from the offer and sale of unregistered franchises in the state.


Ronald L. Copple - SDO-64-00

The Securities Division entered into a Consent Order with Ronald L. Copple, a registered securities salesperson.


Dale Carnegie & Associates, Inc. - SDO-63-00

Dale Carnegie & Associates, Inc., a New York corporation, agreed to enter into a consent order with the Securities Division and agreed to refrain from the offer and sale of unregistered franchises in the state.


Lee Douglas Tusberg, Trans-Link Research and Development Group, Inc. - SDO-62-00

The Securities Division entered a Summary Order to Cease and Desist and Suspending Securities Salesperson Registration and Notice of Intent to Revoke Securities Salesperson Registration against Lee Douglas Tusberg and Trans-Link Research & Development Group, Inc.


Wishbone Properties, Golden Age Planning and Jerry King - SDO-61-00

The Securities Division entered a Final Order to Cease and Desist against the Respondents for violations of the registration and anti-fraud sections of the Securities Act of Washington. Jerry King, d.b.a. Golden Age Planning and Wishbone Properties offered and sold investment notes to Renton area residents while representing that he was using the loan proceeds to make real estate investments.


Alvin L. McGill - SDO-60-00

The Securities Division entered a Statement of Charges and Notice of Intention to Suspend Securities Salesperson Registration against Alvin L. McGill, a registered securities salesperson, for alleged dishonest and unethical practices in violation of the Securities Act.


Ronald C Hauf – Statement of Charges/Letter of Intention - SDO-58-00

On May 22, 2000, the Securities Division entered SDO-58-00, Statement of Charges and Notice of Intention to Suspend Securities Salesperson Registration against Ronald C. Hauf, a registered securities salesperson, for alleged dishonest and unethical practices in violation of the Securities Act. The matters alleged in SDO-58-00 were settled in August 2000 with the issuance of a letter of caution. Ronald C. Hauf neither admitted or denied the Securities Division’s allegations in the Statement of Charges.


Pinnacle Capital Fund - SDO-57-00

On May 17, 2000, the Securities Division entered Summary Order to Cease and Desist SDO-57-00 naming Pinnacle Capital Fund and Arthur Kilner for violation of the registration and anti-fraud sections of the Washington Securities Act.


Center for Stress Management. - SDO-56-00

On May 17, 2000, the Securities Division entered Summary Order to Cease and Desist SDO-56-00 naming Center for Stress Management and Arthur Kilner for violation of the registration and anti-fraud sections of the Washington Securities Act.


Joie De Vie Ventures, Inc. - SDO-55A-00

On May 17, 2000, the Securities Division entered Summary Order to Cease and Desist SDO-55A-00 naming Joie De Vie Ventures, Inc. and Arthur Kilner for violation of the registration and anti-fraud sections of the Washington Securities Act.


Linda Ann Gilbertson - SDO-54-00


Signature Media Services, Inc.; Great Life Network, Inc.; Mark Beeksma; Erik R. Van Alstine - Consent Order and Order Vacating Summary Order SDO-39-00 - SDO-53-00 and SDO-39-00


Northwest Windshields, Inc. - SDO-52-00

On May 18, 2000, the Securities Division entered Consent Order SDO-52-00 to resolve the concern that the company offered and sold franchises in violation of the registration provisions of the Franchise Investment Protection Act.


Lennox Investment Group, Ltd; James Wardell; Randall Law; Standard Capital Group; Monica Iles - SDO-51-00

The Securities Division entered a statement of charges against Lennox Investment Group, Ltd.; its president, Randall Law; its chairman, James Wardell; and against Standard Capital Group and its president, Monica Iles; in connection with the sale of a prime bank investment program.


Ray Mason and Vend America - SDO-50-00

On May 2, 2000, the Securities Division entered a Final Order to Cease and Desist, SDO-50-00, against Vend America, and its' sales agent Ray Mason, for offering an unregistered business opportunity involving candy vending machines.


Acro-Tech, Inc; Reggie D. Huff - SDO-49-00


Wealth Builders International, LLC; Jeffrey Charlton - SDO-48A-00

The Securities Division entered Summary Order to Cease and Desist SDO-48A-00 against the Respondents for violation of the Business Opportunity Fraud Act disclosure document, antifraud, and registration provisions. Wealth Builders is the seller of an income opportunity involving payment for participating in a direct mail sales program.


Carl Ogren, Ogren & Associates, Inc.; Reliance Financial Group, Inc.; Paragon Capital Group, Inc. - SDO-47-00

The Securities Division entered a summary cease and desist order against Carl Ogren, Ogren & Associates, Reliance Financial Group, Inc.; and Paragon Capital for the sale of unregistered investments in viatical settlements.


Poochie's, a business; Vandie Sixkiller; and Stan Sixkiller - SDO-46A-00

The Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, SDO-46-00, naming the above parties for violation of the registration and antifraud provisions of the Act.


BMD Enterprises, Ltd., Northwest Eagle, Inc., Reliant of America, Inc., Northwest Reliant, Inc., Ronald M. Topping, Roger A. Chinn, E. Arlene Chinn, Donald M. Vories - SDO-45-00


BMD Enterprises, Ltd., Northwest Eagle, Inc., Reliant of America, Inc., Northwest Reliant, Inc., Ronald M. Topping, Roger A. Chinn, E. Arlene Chinn, Donald M. Vories - SDO-44-00

The Securities Division entered into a Consent Order with BMD Enterprises, Ltd., to resolve allegations contained in Statement of Charges SDO 42 - 99 as to BMD Enterprises, which alleged that it sold unregistered securities in BMD Enterprises through its agents Northwest Eagle, Reliant of America, Northwest Reliant, Roger and Arlene Chinn, and Donald Vories. BMD Enterprises has been suspended from trading on the VSE and the BC Securities Commission has entered a Cease Trade Order against BMD Enterprises.


BMD Enterprises, Ltd., Northwest Eagle, Inc., Reliant of America, Inc., Northwest Reliant, Inc., Ronald M. Topping, Roger A. Chinn, E. Arlene Chinn, Donald M. Vories - SDO-43-00

The Securities Division entered into a Consent Order with Northwest Eagle, Reliant of America, and Northwest Reliant to resolve allegations contained in Statement of Charges SDO 42 - 99 as to these entities, which alleged that they sold unregistered securities in BMD Enterprises, Northwest Eagle, Reliant of America, and Northwest Reliant through their agents Roger and Arlene Chinn, and Donald Vories.


Lynda Gilbertson - SDO-42-00

The Securities Division entered a Statement of Charges and Notice of Intention to Revoke Securities Salesperson registration against Lynda Ann Gilbertson, a registered securities salesperson, for alleged dishonest and unethical practices in violation of the Securities Act. Gilbertson allegedly engaged in unauthorized trades in customer's accounts and failed to execute written discretionary agreements.


Kenneth Grammer d.b.a. Vendcorp, Vendcorp Refreshments, Inc. or VSS Refreshments - SDO-41-00

On April 12, 2000, the Securities Division entered Consent Order SDO-41-00 to resolve allegations contained in a Summary Order to Cease and Desist entered in September, 1999, that the parties violated the disclosure document, antifraud, and registration provisions of the Business Opportunity Fraud Act.


Ronald Copple - SDO-40-00

Statement of Charges and Notice of Intention to Revoke Securities Salesperson Registration.


 Senturian Investments, LLC and Stanley J. Kwake - SDO-38-00

The Securities Division entered a Summary Order to Cease and Desist against Senturian Investments, LLC and Stanley J. Kwake for alleged violations of the registration and anti-fraud provisions of the Securities Act.


American Freedom International, Jim Lake - SDO-37-00

The Securities Division entered a Summary Order to Cease and Desist against American Freedom International and Jim Lake for sale of unregistered securities and misrepresentations in connection with the sale of securities.


BMD Enterprises, Ltd., Northwest Eagle, Inc., Reliant of America, Inc., Northwest Reliant, Inc., Roger A. Chinn, E. Arlene Chinn, Donald M. Vories - SDO-36-00

The Securities Division entered into a Consent Order with Roger A. Chinn, and E. Arlene Chinn to resolve allegations contained in Statement of Charges SDO 42 - 99 as to the Chinns, which alleged that the Chinns acted as unregistered securities salespersons and broker-dealers selling unregistered securities in Northwest Eagle, Inc., Reliant of America, Inc., Northwest Reliant, Inc., and BMD Enterprises, Ltd.


 Larry D. Gordon, The Gordon Group International, Inc., and Lo-Go Systems, Inc. -     SDO-35-00


Wishbone Properties, Golden Age Planning and Jerry King, - SDO-34A-00

The Securities Division entered a Summary Order to Cease and Desist against the Respondents for alleged violations of the registration and anti-fraud sections of the Securities Act of Washington.


Arnold Energy Enterprises, Inc., Northwest Tatum Drilling Prospect No. 1-A Jameson, Ltd, Morton S. Kaplan, Ian "Alan" Weiss - SDO-32A-00

The Securities Division entered a Summary Order to Cease and Desist against Arnold Energy Enterprises, Inc., Northwest Tatum Drilling Prospect No. 1-A Jameson, Ltd, Morton S. Kaplan, Ian "Alan" Weiss for alleged violations of the registration and anti-fraud provisions of the Securities Act.


Global Mailing Systems, Independent Marketing Exchange, Inc., Wayne Verderber,

a/k/a Brian West - SDO-31-00

The Securities Division entered a Summary Order to Cease and Desist naming the above Respondents for alleged violations of the antifraud and registration provisions of the Business Opportunity Fraud Act. The opportunity involved payment for work at home envelope processing. Respondents failed to provide complete material information about the company, or the envelope processing opportunity.


Neil T. Adkins, C. John Cannon, Senior Estate Planning Group, Inc., American National Security, Inc., American National Security Monitoring, Inc., American National Safety, Inc., Research Safety Industries, Inc., Executive Search, Inc - SDO-30-00

The Securities Division entered a Summary Order to Cease and Desist against the Respondents for violations of the registration and anti-fraud sections of the Securities Act of Washington.


Mark 5, Inc., Robert D. King - SDO-29-00

On March 8, 2000, the Securities Division entered Summary Order to Cease and Desist naming Mark 5, Inc. and Robert D. King for alleged violations of the disclosure document, antifraud, and registration provisions of the Business Opportunity Fraud Act. The opportunity involved the offer and sale of distributorships for the sale of jewelry.


Investors Associates, Inc., Glenn Lavender, Alex Cherepakhov, Donna Silverman, and Herman Epstein - SDO-28-00


New Vision ATM, Inc., Nick Caro, Albert Bowen - SDO-27-00

On March 1, 2000, the Securities Division entered Summary Order to Cease and Desist naming New Vision ATM, Inc., Nick Caro, and Albert Bowen for alleged violations of the registration and anti-fraud section of the Securities Act of Washington.


Devon Jeannette Alcott - SDO-26-00

The Securities Division entered a final order to cease and desist against Devon Jeannette Alcott for allegedly violating the registration and anti-fraud provisions of the Washington Securities Act.


RBM Merchandising, Robert B. McDonald - SDO-25-00

The Securities Division entered a Summary Order to Cease and Desist, SDO-25-00, against RBM Merchandising, and its' promoter Robert B. McDonald, for offering an unregistered business opportunity.


D & D Global Enterprises - SDO-24-00

The Securities Division entered a Summary Order to Cease and Desist, SDO-24-00, against D & D Global Enterprises for offering an unregistered business opportunity.


Concord Mailers, Inc - SDO-23-00

The Securities Division entered a Summary Order to Cease and Desist, SDO-23-00, against Concord Mailers, Inc. for offering an unregistered business opportunity.


American Publications Co. - SDO-22-00

The Securities Division entered a Summary Order to Cease and Desist, SDO-22-00, against American Publications Co. for offering an unregistered business opportunity.


Lance Winslow, d.b.a. The Car Wash Guys - SDO-20-00

The Securities Division issued Summary Order to Cease and Desist naming the above parties for alleged violation of the registration and antifraud provisions of the Act.


BMD Enterprises, Ltd., Northwest Eagle, Inc., Reliant of America, Inc., Northwest Reliant, Inc., Roger A. Chinn, E. Arlene Chinn, Donald M. Vories - SDO-16-00

The Securities Division entered Findings of Fact and Conclusions of Law and Final Order to Cease and Desist As To Donald M. Vories, for violations of the registration and antifraud provisions of the Securities Act of Washington.


GSECO, its agents and employees - SDO-15-00

The Securities Division entered a Summary Order to Cease and Desist against GSECO for allegedly offering an unregistered business opportunity involving payment for work at home envelope processing.


Ray Mason and Vend America - SDO-14-00

The Securities Division entered a Summary Order to Cease and Desist, SDO-14-00, against Vend America, and its' sales agent Ray Mason, for offering an unregistered business opportunity.


Pangea Petroleum Corp, Donald Goree, Joseph Fontana - SDO-13-00

The Securities Division entered a summary order to cease and desist against Pangea Petroleum Corp, Donald Goree, and Joseph Fontana. Fontana, then a securities salesperson for a New York broker-dealer, allegedly sold stock in Pangea Petroleum Corp., a Colorado corporation based in Texas. The sale was off the books of Fontana's broker-dealer. Pangea, of which Goree was then president, also participated in the sale.


Pacific Northwest Asset Management, Inc. - SDO-12-00

The Securities Division entered into a Stipulated Censure with Pacific Northwest Asset Management ("PNAM"), a registered investment adviser, to resolve findings concerning net capital violations by the firm.


John Wachsmith, ASTA Capital Corporation, American Securities Transfer Agency, Wachsmith & Associates SDO-11-00

The Securities Division entered a final Order to Cease and Desist against John Wachsmith, ASTA Capital Corporation, American Securities Transfer Agency, Wachsmith & Associates for allegedly acting as an unregistered broker-dealer or salesperson, for violating the anti-fraud provisions of the Securities Act of Washington, and for fraudulent conduct by a person advising another about securities for compensation.


Vermiculture, Inc., Jeff Owens SDO-10-00

The Securities Division entered Summary Order to Cease and Desist against Respondents for alleged violation of the Act's registration and disclosure document provisions.


Vendmark, Mark Plotkin - SDO-09-00

The Securities Division entered a Summary Order to Cease and Desist against the Respondents for alleged violation of the Business Opportunity Fraud Act disclosure document, antifraud, and registration provisions.


Jeffrey Nissim Funes - SDO-08A-00

The Securities Division entered a summary cease and desist order against Jeffrey Nissim Funes for allegedly offering and selling unregistered stock and converting the funds of the investors.


Peter W. Woodbridge; Newcastle Financial Group, Inc - SDO-07-00

The Securities Division entered a Consent Order with Peter Woodbridge and Newcastle Financial Group, Inc. for allegedly offering and selling unregistered securities to at least seven investors and for allegedly failing to disclose material information about the securities. Without admitting or denying the allegations, Woodbridge agreed to permanently cease and desist from further violations of the Washington Securities Act.


Mitchell Shook, d.b.a. The Spotted Cow - SDO-06-00

The Securities Division entered into Consent Order SDO-06-00 with the above party to resolve allegations contained in Summary Order to Cease and Desist SDO-77-99.


Biotech Pure Water Systems - SDO-05-00

The Securities Division entered into a Consent Order with Biotoech Pure Water Systems, Inc., Ray G. Bohn, Kenneth W. Brownfield and the Estate of John R. Ryan to resolve allegations contained in Statement of Charges SDO-67-97.


Devon Jeannette Alcott - SDO-04(A)-00

The Securities Division entered a statement of charges alleging that Alcott and Parker offered and sold unregistered securities and failed to disclose the risks of the investments that they were offering.


Dale James Bjornberg - SDO-03-00

The Securities Division entered into a Consent Order SDO-03-00 with Dale James Bjornberg to resolve allegations contained in Statement of Charges SDO-78-99.


Clement Ireo Ejedawe and Bradford Capital Group, Inc. - SDO-02(A)-00

The Securities Division entered a statement of charges alleging that Ejedawe and Bradford Capital offered and sold unregistered securities to at least two Washington investors.


Global Investments Network, Ltd.; Tony Rodriguez - SDO-01-00

The Securities Division entered a final Order to Cease and Desist against Global Investments Network, Ltd and Tony Rodriguez, its U.S. representative, for alleged violations of the registration and antifraud provisions of the Securities Act of Washington.


Varner Technologies, Inc., Clay Varner, Ray Heflin - SDO-080-99

On December 18, 1999, the Division entered into Consent Order SDO- 80 -99 with Varner Technologies, Inc., Clay Varner, and Ray Heflin to resolve allegations contained in Summary Order to Cease and Desist SDO-58-99 against the named parties that they violated the Securities Act's securities, broker-dealer and salesperson registration provisions.


Car Wash Guys International, Inc., Lance Winslow, and their agent and employees, Respondents - SDO-79-99 - Summary Order to Cease and Desist

The Securities Division issued a Summary Order to Cease and Desist alleging that the respondents violated the registration and antifraud provisions of the Franchise Act.  Lance Winslow allegedly sold a franchise to one Washington resident and had discussions with at least three others regarding the sale of a “Car Wash Guys” franchise.  Winslow lives in California and maintains a website from which potential franchisees can contact him for information about purchasing a franchise.


Dale James Bjornberg - SDO-78-99

The Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist against Dale James Bjornberg for allegedly acting as an unregistered broker-dealer salesperson. Bjornberg allegedly signed agreements to act as an introducing agent for Castlerock Investment Group, Ltd., which had not registered its securities with Washington. Bjornberg then allegedly introduced at least 6 residents of Washington to Castlerock for the purpose of purchase investments from Castlerock.


Americard Dispensing, Shevin Goodman, Peter Solo - SDO-75-99

The Securities Division issued Summary Order to Cease and Desist naming the above parties for alleged violation of the disclosure document and registration provisions of the Act. Americard Dispensing sells a prepaid phonecard vending opportunity and provides location assistance to purchasers. A Washington resident attempted to cancel his purchase prior to shipment, and has been unable to obtain a refund.


Priority Marketing, - SDO-072-99

The Securities Division entered Summary Order to Cease and Desist against the named parties for alleged violation of the antifraud, disclosure document and registration provisions of the Business Opportunity Fraud Act.


Richard Douglas Wright - SDO-071-99

The Securities Division entered a Statement of Charges and Notice of Intent to Revoke Securities Salesperson Registration against Richard Douglas Wright for allegedly engaging in dishonest and unethical practices while acting as a registered securities salesperson. Over a period of about five years Wright allegedly used his positions at brokerage firms to gain the trust of his customers and then offered those clients market yields of 9% and 10% in exchange for personal loans. Wright allegedly convinced seven of his brokerage customers to loan him $225,000, a substantial portion of which has not been repaid.


Walter, Scott, Lev & Associates and Arthur K. Ruiz - SDO-070-99

The Securities Division entered a Final Order to Cease and Desist against Walter, Scott, Lev & Associates and Arthur K. Ruiz for alleged violations of the Commodity Act. Respondents allegedly used high-pressure sales tactics, including intensive telephone campaigns and unsolicited telephone calls promising 20 to 30% rates of return with minimal risk for investments in speculative foreign currency transactions traded on foreign exchanges or through the interbank market. In addition, Respondents misrepresented clients account balances telling them that they had profits when the accounts actually showed significant losses.


Alliance Trust, Clifton Wilkinson, U.S. Guarantee Corp., Alvin A. Tang - SDO-068-99

On November 8, 1999, the Division entered Summary Order to Cease and Desist SDO-68-99 against the named parties for violations of the Securities Act's antifraud and securities, broker-dealer and salesperson registration provisions. Alliance Trust had made a mass mailing of promotional materials to current or former insurance agents around the nation to attempt to induce them to market investments in the trust to their clients. The promotional materials contained promises of high annual returns and assurances of safety that were not credible.


Body Balance for Performance, L.L.C. - SDO-067-99

On October 26, 1999, the Division entered into a Consent Order with Body Balance to resolve allegations that it had sold franchises in violation of the registration requirement of the Franchise Investment Protection Act. The franchises involve a golf health, fitness, and performance-training program.


John Wachsmith, ASTA Capital Corporation, American Securities Transfer Agency, Wachsmith & Associates - SDO-066-99

The Securities Division entered a final Order to Cease and Desist against John Wachsmith, ASTA Capital Corporation, American Securities Transfer Agency, Wachsmith & Associates for allegedly acting as an unregistered broker-dealer or salesperson, for violating the anti-fraud provisions of the Securities Act of Washington, and for fraudulent conduct by a person advising another about securities for compensation.


United Community Services of America, International Tesla Electric Company, Better World Technologies, Inc., Dennis Lee, Charles W. McAnlis, Jeffry Otto - SDO-064-99

The Securities Division entered a Summary Order to Cease and Desist against United Community Services of America, International Tesla Electric Company, Better World Technologies, Inc., Dennis Lee, Charles W. McAnlis, Jeffry Otto for alleged violations of the registration and anti-fraud provisions of the Securities Act of Washington.

Lee is purportedly the Director of these companies, Otto is allegedly a "dealer" for UCSA and an ITEC representative, and McAnlis is allegedly a "satellite service station" for UCSA. Respondents offer Washington residents investments in cooperatives to obtain a perpetual motion machine, which will purportedly provide investors free electricity and supply excess electricity to be commercially sold by Lee and his companies to fund the free electricity program. McAnlis also offers loan investments to Washington residents. Respondents allegedly failed to disclose material information in connection with the offer of securities in Washington. The investments are not registered in the State of Washington and Respondents are not registered as securities salespersons or broker-dealers in the State of Washington.


International Trading & Manufacturing, Inc., The Martin Consulting Group, Inc., Martin H. Engelman - SDO - 060 - 99

On September 23, 1999, the Division entered Summary Order to Cease and Desist alleging that there were violations of the Securities Act's disclosure document and antifraud provisions as well as securities, broker-dealer and salesperson registration requirements. International Trading develops and distributes the "Baby Genius™" product line of music, books, and other related items promoting early childhood development and it appeared at the Money Show in part to promote sales of its common stock.

Engleman failed to disclose (1) that he is the subject of an Order of Prohibition and Revocation (File No. S-97187 EX) issued by the Wisconsin Department of Financial Institutions, Division of Securities, dated July 16, 1998, for violations of Wisconsin securities registration and antifraud provisions, and (2) that on May 25, 1995, the United States Securities and Exchange Commission (Administrative Proceeding File No. 3-7719) sustained the order of an administrative law judge barring him and others from association with any broker or dealer and ordering them to cease and desist from violating the antifraud provisions of the federal securities laws.


Blue Ridge Energy, Inc., B.U. Ranch #1 Limited Partnership, Ltd., Ridgemont Securities, Inc., Kevin Cline - SDO - 059 - 99

On September 20, 1999, the Securities Division entered Summary Order to Cease and Desist alleging violations of the Act's securities registration requirement. Blue Ridge appeared at the Money Show to promote the sale of limited partnership units in a partnership intending to acquire a working interest in an oil well.


Varner Technologies, Inc., Clay Varner, Ray Heflin - SDO - 058 - 99

On September 10, 1999, the Division entered Summary Order to Cease and Desist against the name parties for alleged violation of the Act's securities, broker-dealer and salesperson registration provisions. Varner appeared at the Money Show to promote a stock giveaway program.


Bates Int'l Motor Home Rental Systems, Inc., Bates Motor Home Rental Network, Inc. - SDO - 057 - 99

On August 26, 1999, the Division entered a Consent Order to settle allegations that the franchisor sold one franchise in the state of Washington in violation of the registration provision of the Franchise Investment Protection Act. The franchise business involves clearinghouses for the rental of motor homes. The franchisor conducted a rescission offer to the Washington purchaser, which was accepted, and the franchisor is in the process of registering.


Crest Energy, Inc., Edward P. Horan III - SDO - 056 - 99

On September 10, 1999, the Division entered Summary Order to Cease and Desist alleging the parties violated the Securities Act's securities, broker-dealer and salesperson registration provisions. Crest appeared at the Money Show held in Seattle in August to promote the sale of undivided fractional working interests in oil and gas wells.


Internext Idea, Inc., d.b.a. Travel Navigator, Phillip W. Moss - SDO - 051 - 99

On August 4, 1999, the Division entered a Consent Order in settlement of allegations that the parties violated the Act's registration and disclosure document provisions. Internext Idea, Inc., d.b.a. Travel Navigator, is the seller of an opportunity to enable purchasers to become travel consultants and provide Internet-based or online travel services for leisure travelers.


Target Vending Systems, Inc., Barry Richman, Harold Davis - SDO - 048 - 99

On September 10, 1999, the Division entered Summary Order to Cease alleging violations of the registration, antifraud, and disclosure document provisions of the Business Opportunity Fraud Act. The opportunity involved medical product vending machines.


Investment and Estate Strategies, LLC and Ernest Dill - SDO - 047 - 99

The Securities entered a Statement of charges and Notice of Intention to Enter Order Suspending Registration against Investment and Estate Strategies, LLC and Ernest Marion Dill. Dill allegedly liquidated several mutual funds, in the account of at least one customer, without contacting the customer prior to the sale and without having written discretionary authority over the account.


Kenneth D. Grammer, d.b.a. Vendcorp Refreshments, Inc. or VSS Refreshments - SDO - 046 - 99

On September 20, 1999, the Securities Division entered Summary Order to Cease and Desist and Denying Registration Application for alleged violations of the Act's registration, disclosure document, and antifraud provisions. Grammer was the subject of a prior Consent Order (November, 1996) concerning vending machine opportunities in which he agreed to comply with the registration provisions. The parties subsequently violated the terms of the order by offering business opportunities while unregistered, and a recent reapplication for registration for the vending opportunity is being denied.


Peggy L. Maxwell and Lyle Hartford VanDyke, Jr. - SDO - 045 - 99

The Securities Division entered a Statement of Charges and Notice of Intention to Enter Order to Cease and Desist against Peggy L. Maxwell and Lyle Hartford VanDyke, Jr., for alleged violations of the antifraud provisions of the Securities Act of Washington. Maxwell and VanDyke allegedly made misleading statements and omissions of material fact regarding "bearer bonds" offered in lieu of earnest money to secure a real estate sale.


David T. Ramsden - SDO - 044 - 99

The Securities Division entered into a Consent Order with Securities Salesperson David T. Ramsden. Over a three year period, Ramsden, allegedly advised a 74 year old Washington resident to invest a series of high risk limited partnerships, despite the fact that the resident was retired and living off social security income. Ramsden also convinced the resident to loan him over $78,000.


Alpha Capital Group, LLC; Anne DiLeo; Lynn Gordon; Viatical Escrow Services; James Capwill; Linda Y. Demiero-Stull; Robert W. Stull; Joseph C. Voutour; James Michael Metcalf; Donald E. Johnson; Alan Goode; and Michael Barry Russell - SDO - 043 - 99

The Securities Division entered a Summary Order to Cease and Desist against these groups and individuals (hereinafter referred to as "Respondents") for alleged violations of the registration and antifraud provisions of the Securities Act of Washington. Respondents allegedly offered and sold ownership interests in viatical settlement contracts that would purportedly produce a 100-percent return on the investors’ investment. The offer and sale of these viatical investments constitute the offer and sale of securities. These securities are not registered in the state of Washington and have not previously been so registered. None of the Respondents are registered as securities salespersons or broker-dealers. In addition, Respondents allegedly made material misrepresentations and omissions in connection with the offer and sale of the viatical investments.


BMD Enterprises, Ltd., Ronald M. Topping, Northwest Eagle, Inc., Reliant of America, Inc. Northwest Reliant, Inc., Roger A. Chinn. E. Arlene Chinn, Donald M. Vories - SDO - 042 - 99

The Securities Division entered a Statement of Charges and Notice of Intention to Enter Order to Cease and Desist against BMD Enterprises, Ltd., Ronald M. Topping, Northwest Eagle, Inc., Reliant of America, Inc. Northwest Reliant, Inc., Roger A. Chinn. E. Arlene Chinn, Donald M. Vories for alleged violations of the registration and antifraud provisions of the Securities Act of Washington. Respondents allegedly offered and sold more than $3,000,000 in Northwest Eagle stock and royalty agreements, Reliant of America stock, BMD Enterprises stock and warrants, and Northwest Reliant promissory notes to more than 300 investors. These securities were not registered in the state of Washington and no exemptions appear to have been available. None of the Respondents are registered as securities salespersons or broker-dealers. In addition, Northwest Eagle, Reliant of America, Northwest Reliant, Roger and Arlene Chinn, and Vories allegedly made material misrepresentations and/or omissions of fact in connection with the offer and sale of the above stated stocks, royalties, warrants, and promissory notes.


Galardi Group, Inc. et al - SDO - 041 - 99

On June 7, 1999, the Securities Division entered into Consent Order SDO-41-99 with Respondents Garlardi Group, Inc., Galardi Group Franchise Corp., Galardi Group Franchise & Leasing, Inc., and Frank Coyle. The order was entered to settle allegations that the named respondents were continuing to offer franchises in the state of Washington following expiration of a previous registration. Coyle appeared as a representative of the Respondents at a Seattle trade show to promote the franchises, which involved Wienerschnitzel® fast food restaurants. The Respondents agreed to comply with the registration provision of the Franchise Investment Protection Act, disclose the existence and contents of the order in disclosure documents and to prospective franchisees, and reimbursed the Division $300 for costs incurred in its investigation.


Geoffrey A. Schramek - SDO - 039 - 99

The Securities Division entered a Statement of Charges and Notice of Intention to Enter Order to Cease and Desist against Geoffrey A. Schramek for alleged violations of the registration and antifraud provisions of the Securities Act of Washington. Schramek allegedly offered and sold promissory notes issued by Laser Leasing, Inc. and Capital Acquisitions, Inc. that purportedly would produce 20% annual interest for three years. The notes are not registered, and Schramek is not registered as a securities salesperson or broker-dealer in the state of Washington. In addition, Schramek allegedly made material misrepresentations and omissions in connection with the offer and sale of the notes.


The Oxford Savings Club; Gwen McCarter; Tracy Petrie - SDO - 038 - 99

The Securities Division entered a Summary Order to Cease and Desist against The Oxford Savings Club, Gwen McCarter, and Tracy Petrie for alleged violations of the registration and antifraud provisions of the Securities Act of Washington. Respondents solicited approximately 1,400 randomly chosen individuals that reside in various states to invest in Oxford Savings’ loan program. Respondents allegedly made misrepresentations and omissions in connection with the solicitation (e.g., promising 10% interest compounding monthly for 10 years). The offering was not registered and not exempt. Respondents were not registered to sell securities in Washington.


Heath Robert Youell - SDO - 037 - 99

The Securities Division entered into a Consent Order with Heath Robert Youell in settlement of allegations involving the misappropriation of customer funds in violation of the Securities Act of Washington. Youell allegedly received two checks worth $55,000, representing IRA rollover funds belonging to a customer. Instead of depositing those funds to the Customer's account, Youell allegedly deposited the funds into his personal bank account, later using the funds to buy real estate for his own personal use. In order to cover up his actions Youell allegedly gave the customer fictitious account numbers and fictitious reports regarding the return on the Customer's investments. Youell has repaid the Customer in full. Under the terms of the Consent Order Youell's securities salesperson registration has been revoked and all future applications for reinstatement shall be denied.


Walter, Scott, Lev & Associates and Arthur K. Ruiz - SDO - 036 - 99

The Securities Division entered a Summary Order to Cease and Desist against Walter, Scott, Lev & Associates and Arthur K. Ruiz for violations of the Commodity Act. Respondents allegedly used high-pressure sales tactics, including intensive telephone campaigns and unsolicited telephone calls promising 20 to 30% rates of return with minimal risk for investments in speculative foreign currency transactions traded on foreign exchanges or through the interbank market. In addition, Respondents allegedly misrepresented clients account balances telling them that they had profits when the accounts actually showed significant losses. The Respondents are not registered and not exempt from registration.


Global Investments Network, Ltd.; Tony Rodriguez - SDO - 035 - 99

The Securities Division entered a Summary Order to Cease and Desist against Global Investments Network, Ltd and Tony Rodriguez, its U.S. representative, for alleged violations of the registration and antifraud provisions of the Securities Act of Washington. Respondents solicited investors to invest in a "prime bank" type of investment.


Bradley T. Carlson - SDO - 034 - 99

The Securities Division entered a Final Order to Cease and Desist against Bradley T. Carlson. Over a period of two years Carlson, a member and Treasurer of the Monkey Investment Group ("MIG"), used his position to misappropriate funds from the private investment club. Carlson forged co-signatures on 17 checks and deposited the funds to his own personal bank account. Thereafter, Carlson failed to follow the directions of MIG to purchase shares of stock in four companies, since his misappropriations left MIG with insufficient funds to cover the purchases. Carlson then covered up his actions by preparing false financial statements for presentation to the other MIG members. Carlson’s relatives have paid MIG $12,763.58 as compensation for the misappropriations.


Edward B. Winston - SDO - 033 - 99

The Securities Division entered a Final Order to Cease and Desist against Edward B. Winston for alleged violation of the antifraud provisions of the Securities Act of Washington. Mr. Winston solicited an investor to invest with Ariel Productions, Inc., an organizer and promoter of concert events. Winston allegedly made misrepresentations and omissions regarding his employment status with Ariel, and use of the proceeds.


Richard J. Foster and MG Insurance Services - SDO - 032 - 99

The Securities Division entered a Final Order to Cease and Desist to Richard J. Foster and MG Insurance Services for alleged violations of the registration and antifraud provisions of the Securities Act of Washington. Foster, acting as an agent of MG Insurance Services, allegedly offered and sold unregistered interests in Viatical Funding, LLC’s. Viatical Funding, LLC’s are organized for the purpose of purchasing life insurance policies at various discounts from terminally ill policyholders (i.e., viatical settlements). Foster made material misrepresentations and omissions, and neither Foster nor MG Insurance Services are registered as securities salespersons or broker-dealers in the State of Washington.


St. Paul Film Foundation, Steven Jones - SDO - 031 - 99

The Securities Division entered into a Consent Order with St. Paul Film Foundation and Stephen Jones of Vancouver B.C. regarding the offer and sale of investment bonds to investors located throughout the United States. St. Paul and Jones conducted a portion of their business activities and solicitation of investors from Sumas, Washington. The Division alleged that St. Paul and Jones failed to disclose material risks and other information to investors in violation of the anti-fraud provisions of the Securities Act. The Respondents agreed to cease violating the anti-fraud provisions of the Act and reimburse the Division $4,000 for the costs of the investigation.


Vermi-Plex, Inc., David G. Monroe -  SDO - 030 - 99

The Securities Division, on April 30, 1999, entered a Consent Order with Vermi-Plex, Inc. and David G. Monroe. The Order was entered in settlement of allegations made last month in a Summary Order to Cease and Desist that they violated the Act’s registration requirement, disclosure document requirement, and that they failed to disclose a statuary right to cancel. The opportunity involved the growing of earthworms. The Respondents have reimbursed the Division $300 for costs of investigation.


Morgan Stanley, Dean Witter - SDO - 029 - 99

The Securities Division entered into an Undertaking with Morgan Stanley, Dean Witter in settlement of the investigation over the unsuitability of sales to Washington residents involving two Dean Witter Realty Limited Partnerships, during the 1980’s. During the period, 1987-1989 Dean Witter offered and sold two proprietary limited partnerships, Dean Witter Realty Income Fund IV and Dean Witter Realty Yield Plus II to 718 Washington Residents. Sales materials and presentations presented these investments as five to ten year investments yielding between 12 percent to 16 percent annually which were suitable for just about anyone. By the end of 1998 the investments were still not closed out and had yielded approximately 2 percent annually. To avoid the cost and uncertainty of litigation, and without any admission of liability or wrongdoing by Dean Witter, the Securities Division accepted an Undertaking by Dean Witter. Dean Witter has agreed to pay certain investors $102,220.04 as compensation. Dean Witter has also agreed to donate $50,000 to the Investor Protection Trust for Funding of Financial Literacy 2001, a program focusing on educating Washington students about the financial markets and $60,000 to Investor Protection Trust for the development of an interactive web site to educate investors regarding on-line trading.


Circle One, Inc., John S. Destito - SDO - 028 - 99

The Securities Division entered a Summary Order to Cease and Desist against John S. Destito and three of his companies for violations of the Securities Act of Washington. Destito represented to investors that he had discovered a new way of growing plants and that foreign governments and large corporations were prepared to invest millions in his companies in order to develop this technology. He then proceeded to sell stock and stock options to residents of Washington state. Destito failed to register these offerings and withheld material information from investors. Among his omissions was the fact that he was the subject of a prior order to cease and desist by the Securities Division.


David T. Ramsden - SDO - 027 - 99

The Securities Division entered into a Consent Order with Securities Salesperson David T. Ramsden. Over a three year period, Ramsden allegedly advised a 74 year old Washington resident to invest in a series of high risk limited partnerships, despite the fact that the resident is retired and living off a social security income. Ramsden also convinced the resident to loan him over $78,000.


U. S. Emerald Energy company, Inc., Edward A. Benson - SDO - 025 - 99

On August 5, 1999, the Division entered Consent Order SDO-25-99 in settlement of allegations that U.S. Emerald and Edward A. Benson violated the securities, broker-dealer, and securities salesperson registration requirements of the Securities Act. U.S. Emerald agreed to report to the Securities Division any and all future sales of investments to Washington residents and reimbursed the Division $500 for costs of investigation.


Internext Idea, Inc., d.b.a. Travel Navigator, Phillip W. Moss - SDO - 024 - 99

On April 23, 1999, the Division entered a Summary Order to Cease and Desist against these parties for violation of the Act’s registration and disclosure document provisions. Internext Idea, Inc., d.b.a. Travel Navigator, is the seller of an opportunity to enable purchasers to become travel consultants and provide Internet-based or online travel services for leisure travelers.


Bradley T. Carlson - SDO - 023 - 99

The Securities Division entered a Statement of Charges and Notice of Intention to Enter Order to Cease and Desist against Bradley T. Carlson. Over a period of two years Carlson, a member and Treasurer of the Monkey Investment Group ("MIG"), used his position to misappropriate funds from the private investment club. Carlson forged co-signatures on 17 checks and deposited the funds to his own personal bank account. Thereafter, Carlson failed to follow the directions of MIG to purchase shares of stock in four companies, since his misappropriations left MIG with insufficient funds to cover the purchases. Carlson then covered up his actions by preparing false financial statements for presentation to the other MIG members. Carlson’s relatives have paid MIG $12,763.58 as compensation for the misappropriations.


Data Group, Inc.; Wireless Depot of Houston, LLP; David Browning; Mitchell Lipton; Bruce Rawdin; and Lawrence Labell - SDO - 022 - 99

The Securities Division entered a Statement of Charges and Notice of Intention to Enter Order to Cease and Desist against Data Group, Inc., Wireless Depot of Houston, LLP, David Browning, Mitchell Lipton, Bruce Rawdin, and Lawrence Labell. Data Group, acting through their agents and/or employees (Browning, Lipton, Rawdin, and Labell) allegedly offered and sold partnership interests in Wireless Depot of Houston, LLP to at least five Washington residents. The partnership interests constituted securities that were not registered in Washington. None of the above-named Respondents were registered to sell securities in the State of Washington.


Michael E. Jacobson - SDO - 020 - 99

The Securities Division entered into a Consent Order with Michael E. Jacobson for alleged violations of the registration and antifraud provisions of the Securities Act of Washington. Jacobson allegedly solicited two Washington residents to invest in prime bank instruments. In the course of the solicitations, Jacobson engaged in a scheme to defraud by offering a two-month yield of 500% and a guarantee of the investor’s principal investment. Jacobson is not registered to sell securities in Washington. Jacobson has agreed to cease and desist from violating the registration and antifraud provisions of the Securities Act.


AMP Publications, Inc. - SDO - 019 - 99

On March 17, 1999, the Division entered a Summary Order to Cease and Desist against AMP Publications, Inc. for alleged violation of the Business Opportunity Fraud Act's registration and disclosure document provisions. AMP Publications, Inc. is the seller of an opportunity to enable purchasers to work from home doing computer work for local companies. This Order was based on offers, not sales.


Ameritel Payphone Distributors, Inc., Roy B. Goodman, Scott Thenen - SDO - 018 - 99

On March 11, 1999, the Securities Division entered a Consent Order with Ameritel Payphone Distributors, Inc., and Roy B. Goodman in settlement of allegations contained in a Summary Order to Cease and Desist entered last December that the company violated the Act's registration requirement and failed to properly disclose a statutory right to cancel. The opportunity involved the offer of various packages consisting of coin-operated pay telephones and other associated equipment. This Order was based on offers, not sales.


The Geneva Group and Tanna C. Kelly - SDO - 015 - 99

The Securities Division entered a Statement of Charges and Notice of Intention to Enter Order to Cease and Desist against The Geneva Group, acting through Tanna C. Kelly. Geneva and Kelly allegedly made unsolicited telephone calls to at least 6 Washington residents, touting various micro-cap stocks. Neither Kelly nor Geneva are registered to sell securities in the State of Washington. In each case the residents sent Kelly the payments for their stock purchases but never received the shares they had purportedly purchased.


Action Sports, Ltd. and Dale Carone - SDO - 014 - 99

The Securities Division entered a Statement of Charges and Notice of Intention to Enter Order to Cease and Desist against Actions Sports Limited and Dale Carone. Action Sports, through its agent, Carone, allegedly made unsolicited telephone calls to Washington Residents in an attempt to have them purchase shares of stock in Action Sports Limited. The stock was not registered in the Washington, nor did it qualify for an exemption. Carone was not a licensed salesperson or broker-dealer. Carone allegedly mislead, at least one Washington resident, telling him that the stock traded under a trading symbol that did not correspond to Action Sports Limited. Carone also failed to tell the resident that there were two companies trading on the NASDAQ Bulletin Board using the same symbol.



Richard J. Foster; MG Insurance Services; Viatical Capital, Inc.; Viatical Marketing, Inc.; Viatical Funding, LLC-III; Viatical Funding, LLC-GI-V - SDO - 013 - 99

The Securities Division entered a Statement of Charges and Notice of Intention to Enter Order to Cease and Desist against Richard Foster, MG Insurance Services, Viatical Capital, Inc., Viatical Marketing, Inc., Viatical Funding, LLC-III, and Viatical Funding, LLC-GI-V, for alleged violations of the registration and antifraud provisions of the Securities Act of Washington. Foster, acting as an agent of the Respondents, allegedly offered and sold unregistered interests in Viatical Funding, LLCs. Viatical Funding, LLCs are organized for the purpose of purchasing life insurance policies at various discounts from terminally ill policyholders (i.e., viatical settlements). Foster made material misrepresentations and omissions, and none of the above-named Respondents are registered as securities salespersons or broker-dealers in the State of Washington.


B Squared Software, Inc. - SDO - 012 - 99

The Securities Division entered into a Consent Order with B Squared Software, Inc. for allegedly offering unregistered securities to the general public at the Second Annual Seattle Money Show (an annual trade show held at the Washington State Convention Center). B Squared Software, Inc. has agreed to cease and desist from violating the registration provisions of the Securities Act.


Brian J. Jue; Computerized Grading and Authentication, Inc. -  SDO - 011 - 99

The Securities Division entered into a Consent Order with Brian Jue and Computerized Grading and Authentication, Inc. (CGA) for alleged violations of the registration provisions of the Securities Act. Jue offered unregistered CGA stock to the general public at the Second Annual Seattle Money Show (an annual trade show held at the Washington State Convention Center). Jue is not registered as a securities salesperson or broker-dealer in the State of Washington. Respondents have agreed to cease and desist from violating the registration provisions of the Securities Act.


CLS Financial Services, Inc., Gerald C. Vanhook -  SDO - 010 - 99

The Securities Division entered into a Consent Order revoking certain Permits and Licenses held by CLS Financial Services, Inc. and Gerald C. Vanhook, and conditioning certain exemptions with CLS and Vanhook. CLS and Vanhook allegedly violated the anti-fraud provisions of the Securities Act and several of the debenture company provisions of the Securities Act. Without admitting or denying the Securities findings and conclusions, CLS and Vanhook agreed to cease and desist from violations of the Securities Act. They also agreed, among other things, to make certain filings with the Securities Division and to deliver a copy of the Consent Order to CLS investors.


Glenda W. Anderson - SDO - 009 - 99

The Securities Division entered into a Consent Order with Glenda W. Anderson for engaging in dishonest and unethical practices while registered as a Broker/Dealer Salesperson associated with Investment Management and Research. Anderson traded securities in client accounts without prior permission of customers. Anderson also made trades for customers on a discretionary basis on the basis of oral agreements and failed to obtain written authority for such action from customers. Anderson also made unauthorized trades in direct violation of a Consent Agreement with the Securities Division. Pursuant to the Consent Order Anderson has withdrawn her securities license and has agreed not to reapply.


Dan Mollenhauer, Lee Maddux d.b.a. A-MAZ-ING Concepts - SDO - 008 - 99

On March 17, 1999, the Division entered a Summary Order to Cease and Desist against these parties for alleged violation of the Act's registration and disclosure document provisions. The Respondents appeared at the Entrepreneur Magazine Small Business Expo held in Seattle early this year to offer prospective purchasers gumball vending machines. This Order was based on offers, not sales.


R.J. Graham Oil Co., Kenneth A. Mirly - SDO - 007 - 99

The Securities Division entered a Statement of Charges and Notice of Intention to Enter Order to Cease and Desist against the R.J. Graham Oil Co. and Kenneth A. Mirly for alleged violations of the registration and anti-fraud provisions of the Securities Act of Washington. The R.J. Graham Oil Company sought to raise investment capital by selling undivided fractional working interests in oil and gas leases to residents of Washington state. Kenneth Mirly acted as R.J. Graham's sales agent. Both Respondents allegedly made material misrepresentations of fact in connection with the offer and sale of this investment.


Glenda W. Anderson - SDO-006-99

The Securities Division entered a Summary Order Suspending Salesperson Registration with Notice of Intent to Revoke against Glenda W. Anderson for allegedly engaging in dishonest and unethical practices while registered as a Broker/Dealer Salesperson with Investment Management and Research. Anderson allegedly traded securities in client accounts without prior permission of customers and made trades on the basis of oral agreements without obtaining written authority from customers. Anderson also made unauthorized trades in direct violation of a Consent Agreement with the Securities Division.


Cyril W. Randell and Cyril W. Randell & Associates, Inc., Respondents - SDO-98-28 - Consent Order