Washington State Department of Financial Institutions

2008 Administrative Orders

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Bernard L. Madoff, Bernard L. Madoff Investment Securities LLC – S-08-429-08-TO01 – Summary Order

On December 30, 2008, the Securities Division entered a Summary Order Suspending Securities Salesperson and Broker-Dealer Registration and Notice of Intent to Revoke Registration against Bernard L. Madoff and Bernard L. Madoff Investment Securities LLC (collectively “Respondents”). The Summary Order tentatively finds that Bernard L. Madoff operated a ponzi scheme in which investors lost $50 billion. The Summary Order tentatively finds that Bernard L. Madoff, while employed as a securities salesperson for Bernard L. Madoff Investment Securities LLC, engaged in dishonest and unethical practices by offering a fraudulent investment scheme to Bernard L. Madoff Investment Securities LLC’s investment advisory clients. In addition, the Summary Order tentatively finds that Bernard L. Madoff Investment Securities LLC is insolvent and failed to supervise its securities salesperson Bernard L. Madoff, both of which are independent grounds for suspension of broker-dealer registration. The Summary Order suspends the registrations of Bernard L. Madoff and Bernard L. Madoff Investment Securities LLC, and gives notice of the Securities Division’s intent to revoke the registrations. The Respondents have a right to request a hearing on the Summary Order.

A Final Order was entered in this matter on March 5, 2009.


Gary Young - S-08-124-08-CO01 - Consent Order

On December 29, 2008, the Securities Division entered into a Consent Order with Gary Young. The Securities Division had previously entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Impose Fines, and to Charge Costs against Gary Young (“Respondent”) on May 21, 2008. The Securities Division alleged that Respondent offered and sold unregistered securities for Agricultural Commodities Association Northwest, or ACANW, in the State of Washington. The Securities Division alleged that Respondent said the company was in the business of manufacturing a wall panel similar to a cubicle divider and needed funds to build a plant. The Securities Division alleged that Respondent personally guaranteed that the investment would return 100% in thirty days. The Securities Division further alleged that the Respondent violated the registration and anti-fraud provisions of the Securities Act. In settling the matter, the Respondent neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act. The Respondent agreed to pay a fine of $2,500 and investigative costs of $1,000. The Respondent waived his right to a hearing and judicial review of the matter.


Michael J. Devine, International Consulting LLC, Down Under Seafoods LLC, Kimberley Investments, Inc. - S-08-045-08-SC01 – Statement of Charges

On December 9, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Impose Fines, and Recover Costs against Michael J. Devine, International Consulting LLC, Down Under Seafoods LLC, and Kimberley Investments, Inc. (collectively “Respondents”). The Statement of Charges alleges that Respondents offered and sold investments in the form of promissory notes and equity interests while based in Kirkland, Washington. The Statement of Charges alleges that Respondents raised at least $278,000 between 2005 and 2008 to finance various businesses, including an iron ore mining venture, a seafood store and fish and chips restaurant, and a real estate investment company. The Statement of Charges alleges that Respondents offered unregistered securities, acted as unregistered broker-dealers or securities salespersons, and violated the anti-fraud provisions of the Securities Act of Washington. The Securities Division intends to order Respondents to cease and desist from violating the Securities Act of Washington, and gives notice of its intent to collect fines and recover costs. Respondents have a right to request a hearing on the Statement of Charges.

A final order was entered in this matter on January 26, 2009.


Peruvian Resources Management, Machu Picchu Gold Mining Corporation, Douglas Cyr, Douglas Ashworth, Thomas Olson  - S-05-007-05-FO01 - Final Order and Decision Affirming Initial Order of Administrative Law Judge

On December 9, 2008 the Director of the Department of Financial Institutions entered a Final Decision and Order against Peruvian Resources Management USA, LLC; Machu Picchu Gold Mining Corporation; Douglas Cyr; Douglas Ashworth; and Thomas Olson (collectively “Respondents”) affirming the Initial Order of the Administrative Law Judge. The Initial Order was entered after a six-day hearing. The Final Order comes in an administrative action in which the Department entered a Summary Order on May 18, 2005 in which it alleged that Respondents raised at least $35,000 by offering and selling purported capital contributions in a gold dredging operation in Peru to investors in Pierce, Snohomish, and Spokane counties. The Summary Order further alleged that among other things Respondents did not disclose to investors that several states have taken action against Douglas Ashworth for securities violations. The Summary Order further alleged that Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington in connection with the offer and sale of such securities. In the Final Order the Respondents were ordered to permanently cease and desist from violations of the securities registration and antifraud provisions of the Securities Act of Washington. The Final Order also ordered that the Respondents pay fines and costs as follows:

The Respondents have rights to judicial review of the Final Order.


On Tour Inc., dba On Tour Entertainment Inc., and Timothy Bryant - S-08-218-08-SC01 - Statement of Charges

On December 8, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist against On Tour Inc., dba On Tour Entertainment Inc., and Timothy Bryant. On Tour is a concert promotion and production company located in Davenport, Florida. Bryant is president of On Tour. The Securities Division alleges that Respondents each offered and sold unregistered securities and that Bryant was not licensed as a securities broker-dealer or salesperson. The Securities Division also alleges that Respondents each made misrepresentations of material fact or omitted to state material facts when offering and selling securities in the amount of $15,000 to a Washington investor. Respondents each have the right to request a hearing on the Statement of Charges.


Able Mortgage & Investments, Inc. and Barry A. Hammer - S-04-220-08-CO01 – Consent Order

On December 8, 2008, the Securities Division and Able Mortgage & Investments, Inc. (“Able Mortgage”) and Barry A. Hammer (“Hammer”) entered into a Consent Order. Able Mortgage and Hammer each agreed to cease and desist from any violations of securities registration provisions of RCW 21.20.140, broker-dealer and salesperson registration provisions of RCW 21.20.040 and anti-fraud provisions of RCW 21.20.010. Able Mortgage and Hammer each waived their rights to a hearing in the matter and to judicial review of the order.


Stat Investment Strategies Corp. - S-08-371-08-TO01 - Summary Order

On December 1, 2008, the Securities Division entered a Summary Order Suspending Investment Adviser Registration against Stat Investment Strategies Corp. Stat Investment Strategies Corp. is registered with the Securities Division as an investment adviser. The order alleges that Stat Investment Strategies Corp. has failed to file with the Division a year-end balance sheet dated December 31, 2007 or later and it also has not filed an updated Form ADV with the Investment Adviser Registration Depository (IARD) since September 14, 2005 as required. Stat Investment Strategies Corp. has the right to request a hearing on the matter.

A Final Order was entered in this matter on April 13, 2009.


Kirk Capital Management, Inc. - Summary Order - S-08-370-08-TO01

On December 1, 2008, the Securities Division entered a Summary Order Suspending Investment Adviser Registration against Kirk Capital Management, Inc. Kirk Capital Management, Inc. is registered with the Securities Division as an investment adviser. The order finds that Kirk Capital Management has failed to file with the Division a year-end balance sheet dated December 31, 2007 or later and it also has not filed an updated Form ADV with the Investment Adviser Registration Depository (IARD) since February 21, 2007 as required. Kirk Capital Management, Inc. has the right to request a hearing on the matter.

A Final Order was entered in this matter on April 9, 2009.


Wells Fargo Investments, LLC; Wells Fargo Brokerage Services, LLC; and Wells Fargo Institutional Securities, LLC, S-08-141-08-SC01 - Statement of Charges

On November 20, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist, Offer Restitution, Impose Fines, Recover Costs, and Suspend Registrations against Wells Fargo Investments, LLC, Wells Fargo Brokerage Services, LLC and Wells Fargo Institutional Securities, LLC (collectively “Respondents”). At the time of the market failures in February 2008, customers of Respondents were holding an estimated $3.93 billion in frozen auction rate securities (“ARS”). The Statement of Charges alleges that in offering and selling ARS, Respondents misrepresented and failed to disclose material information to their customers, and made unsuitable recommendations. It is also alleged that Respondents failed to reasonably supervise their salespersons in the sale of ARS. The Securities Division ordered Respondents to cease and desist from violating the anti-fraud and suitability provisions of the Securities Act of Washington. The Securities Division gave notice of its intent to order restitution, to impose fines, to recover costs, and to suspend registrations in the event of non-compliance with an order of the Securities Administrator. Respondents have a right to request a hearing on the Statement of Charges.

A Consent Order for Wells Fargo Investments, LLC was issued on April 22, 2010.

A Consent Order for Wells Fargo Securities, LLC (as successor to Wells Fargo Brokerage Services, LLC) was also issued on April 22, 2010.


35, LLC – S-08-375-08-SO01 – Stop Order

On November 19, 2008, the Securities Division entered a Stop Order Denying Effectiveness of Application for Registration against 35, LLC. The Order alleges that the registration statement filed on behalf of 35, LLC is incomplete in a material respect or contains statements which are false or misleading. Among other things 35, LLC fails to disclose certain risks that could negatively affect any return on investment; the need or failure to register the manager of 35, LLC as a securities salesperson or broker-dealer; and the existence of a Securities Division investigation of the unregistered offer of securities by the board of directors of 35, LLC. The Order also alleges that the promoters have contributed an insufficient amount of equity to 35, LLC and that the offering would be made with unreasonable amounts of promoters’ profits or participation. Respondents have a right to request an administrative hearing on the Order.


Justin C. LaSalla – S-08-251-08-CO01 – Consent Order

On November 13, 2008, the Securities Division entered into a Consent Order with Justin C. LaSalla (“LaSalla”). The Division had entered a Statement of Charges on August 26, 2008 which alleged that LaSalla failed to disclose on his securities salesperson application, Form U-4, that he had filed a bankruptcy petition in July 2007. The Statement of Charges further alleged that LaSalla made a false filing with the Securities Division by filing amendments to his salesperson application which stated that he had not filed bankruptcy. LaSalla neither admitted nor denied the Findings of Fact and Conclusions of Law in entering into the Consent Order. Pursuant to the terms of the Consent Order, LaSalla agreed to a suspension of his securities salesperson license for ninety (90) days and agreed to pay a fine of $750. LaSalla waived his right to a hearing and to judicial review of this matter.


Mark 5, Troy A. Whitworth - S-04-025-08-CO01 - Consent Order and Order Vacating S-04-025-04-FO02 as to Troy Whitworth

On November 3, 2008, the Securities Division entered CONSENT ORDER AND ORDER VACATING S-04-025-04-FO02 AS TO TROY WHITWORTH, S-04-025-08-CO01, with Troy Whitworth. The Securities Division had previously entered a Final Order to Cease and Desist (S-04-025-08-FO02) against Mr. Whitworth on May 10, 2004 in connection with the offer and sale of business opportunities by Robert D. King and Mark 5, Inc., a Texas corporation doing business in Houston, Texas. Respondent Whitworth neither admitted nor denied the Findings of Fact and Conclusions of Law in entering into the Consent Order. However, it was agreed and ordered that the Respondent shall cease and desist from any violations of RCW 19.110.050, the registration provision of the Business Opportunities Act of Washington; RCW 19.110.070, the disclosure document provision; and RCW 19.110.120, the anti-fraud provision. Respondent waives his right to a hearing and to judicial review of the matter.


SoccerTots, Incorporated; Edward Kent Gold - S-07-471-08-SC01 - Statement of Charges

On October 23, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, S-07-471-08-SC01, against SoccerTots, Incorporated and Edward Kent Gold (collectively “Respondents”). Respondents operate SoccerTots and SoccerTouch, which are soccer based child development programs. The Statement of Charges alleges that Respondents offered and sold a franchise to operate the SoccerTots and SoccerTouch programs to a Washington resident while not registered under the Franchise Investment Protection Act of Washington, RCW 19.100. The Statement of Charges further alleges that Respondents violated the anti-fraud and disclosure document provisions of the Franchise Investment Protection Act of Washington in connection with the offer of the franchise. The Securities Division intends to order the Respondents to cease and desist from violating the registration, anti-fraud and disclosure document provisions of the Franchise Investment Protection Act of Washington. Respondents have a right to request a hearing on the Statement of Charges.

A Consent Order was entered in this matter on January 26, 2009.


Michael James Gilhooly; RJJ Pasadena Securities, Inc. - S-07-466-08-CO01 - Consent Order

On October 15, 2008, the Securities Division entered into a Consent Order, S-07-466-08-CO01, with Michael James Gilhooly and RJJ Pasadena Securities, Inc. (collectively “Respondents”). The Securities Division had previously entered a Statement of Charges, S-07-466-07-SC01, against the Respondents on February 6, 2008. The Statement of Charges alleges that Respondents effected over an extended period of time the purchase and sale of securities in a customer’s account after the customer moved to Washington, without being properly registered. Respondents neither admitted nor denied the allegations, but agreed to cease and desist from violating the registration provisions of the Securities Act. Respondents agreed to pay a total fine of $6,000. Respondents each waived their right to a hearing and to judicial review of this matter.


Gitan LLC, Mark Moroney, Brian Thompson - S-07-453-08-FO01 - Final Order

On October 9, 2008, the Securities Division entered a Final Order as to Mark Moroney. On April 23, 2008, the Securities Division had entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Charge Costs, and Impose Fines against Gitan LLC, Mark Moroney, and Brian Thompson (collectively “Respondents”). The Statement of Charges alleged that while in Washington Respondents offered and sold unregistered securities in a company that purportedly developed and marketed mold resistant paints and coatings. The Statement of Charges further alleged that Respondents violated the registration and anti-fraud provisions of the Securities Act. The Securities Division orders Respondent Moroney to cease and desist from violating the registration and anti-fraud provisions of the Securities Act. The Securities Division further orders Respondent Moroney to pay a fine of $15,000 and costs of $500. Respondent Moroney has a right to request judicial review of the Final Order. This matter is still pending as to Gitan LLC and Brian Thompson.


CANUSA Capital, LLC; Ross Paterson; and Victoria Mallahan - S-07-393-08-FO02 - Final Order as to Victoria Mallahan

On September 9, 2008 the Securities Division entered Final Order to Cease and Desist, Impose Fines and Charge Costs as to Victoria Mallahan. The Securities Division had previously entered a Summary Order in the same matter on December 27, 2007. The Summary Order alleged that Respondents offered and sold securities in the form of investment contracts or promissory notes in Washington State and told investors the money would be invested in real estate. The Summary Order further alleged that Respondents violated the registration and anti-fraud provisions of the Securities Act while offering the securities. The Securities Division had entered Entry of Findings of Fact and Conclusions of Law and Final Order to Cease and Desist and Notice of Intent to Impose Fines and Charge Costs as to CANUSA Capital, LLC and Ross Paterson on February 12, 2008.


Jack McDonough - Order Affirming Final Order of Director on Review - S-05-090-08-CA01

On September 5, 2008, Thurston County Superior Court Judge Christine Pomeroy issued an order affirming the Final Order of Director on Review of the Department of Financial Institutions in the matter of Jack McDonough under the Business Opportunity Fraud Act of Washington. The respondent did not exercise his right to appeal Judge Pomeroy’s decision to the Court of Appeals.


Valkyrie, Inc., Robert Storseth - S-07-303-08-SC01 - Statement of Charges

On August 26, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Impose Fines, and Recover Costs against Valkyrie, Inc. and Robert Storseth (collectively “Respondents”). Respondents offered investments in the form of stock in a company founded to secure oil licensing rights. Respondents represented that they had political connections in the oil industry in Colombia which would allow them to obtain oil rights there. Respondents raised at least $257,000 from at least 8 Washington residents. The Statement of Charges alleges that Respondents offered unregistered securities, acted as unregistered broker-dealers or securities salespersons, and violated the anti-fraud provisions of the Securities Act of Washington. The Securities Division intends to order Respondents to cease and desist from violating the Securities Act of Washington, and gave notice of its intent to collect fines and recover costs. The Respondents have a right to request a hearing on the Statement of Charges.

A Final Order was entered as to Valkyrie, Inc. on June 30, 2009

A Consent Order was entered as to Robert Storseth on August 13, 2009.


Justin C. LaSalla - S-08-251-08-SC01 - Statement of Charges

On August 26, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Suspend Securities Salesperson Registration and Impose Fines against Justin C. LaSalla (“Respondent”). The Statement of Charges alleges that Respondent failed to disclose on his securities salesperson application, Form U-4, that he had filed a bankruptcy petition in July 2007. It alleges that LaSalla filed amendments to his form U-4 after he had filed bankruptcy but that in those amended forms he continued to answer that he had not filed a bankruptcy petition. It alleges that LaSalla had an obligation under WAC 460-22B-060 to update his application within 30 days of any event that would make his salesperson application inaccurate. The Statement of Charges further alleges that, by filing amendments to his salesperson application, after the date he filed his bankruptcy petition, which stated that he had not filed bankruptcy, LaSalla made a false filing with the Securities Division. The Securities Division seeks a fine of $2,500 and a three month suspension of LaSalla’s salesperson registration in Washington. The Respondent has a right to request a hearing on the Statement of Charges.

A Consent Order was entered in this matter on November 13, 2008.


Global Aviation Fuel Systems and Bob (Neil) Neklewicz - S-08-002-08-CO01 - Consent Order

On August 25, 2008, the Securities Division entered a Consent Order with Global Aviation Fuel Systems and Bob (Neil) Neklewicz (collectively “Respondents”). The Securities Division had previously entered a Statement of Charges (S-08-002-08-SC01) against Respondents on February 1, 2008. Respondents neither admitted nor denied the Findings of Fact and Conclusions of Law in entering into the Consent Order. However, it was agreed and ordered that Respondents cease and desist from any violations of RCW 21.20.010, the anti-fraud provisions of the Securities Act of Washington; RCW 21.20.040, the broker and salesperson registration provision; and RCW 21.20.140, the securities registration provision. Respondents each waived their right to a hearing and to judicial review of the matter.


The Christmas Light Pros, Inc. - S-06-194-08-SC01 - Statement of Charges

On August 14, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist against The Christmas Light Pros, Inc. The Christmas Light Pros are in the business of selling opportunities in the Christmas light hanging business. The Statement of Charges alleges that the company offered a Christmas light hanging franchise, and sold one such opportunity to a Washington resident while not registered under the Franchise Investment Protection Act of Washington (the Act). The Statement of Charges further alleges that the company violated the disclosure document requirement and antifraud provision of the Act in connection with the sale of the Washington franchise. The Securities Division intends to order the company to cease and desist from violating the registration, disclosure document, and antifraud provisions of the Act. The Christmas Light Pros, Inc. has the right to request a hearing on the Statement of Charges.

A Consent Order was entered in this matter on May 1, 2009.


Robert Edwards d/b/a E-Z Unlimited; Robert Pecord; Capital Asset Group, LLC. - S-08-181-08-SC01 - Statement of Charges

On August 11, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist and to Impose Fines and Charge Costs against Robert Edwards d/b/a E-Z Unlimited, Robert Pecord, and Capital Asset Group, LLC (collectively “Respondents”). Capital Asset Group purportedly engages in the business of foreign exchange asset management. The Statement of Charges alleges that Respondents offered and sold investments in the form of promissory notes to at least one Washington resident. Respondents raised at least $100,000. The Statement of Charges further alleges that Respondents offered unregistered securities and acted as unregistered broker-dealers or securities salespersons. The Statement of Charges additionally alleges that the offer and sale of securities by Respondents violated the anti-fraud provisions of the Securities Act of Washington. The Securities Division intends to order Respondents to cease and desist from violating the Securities Act of Washington, and gives notice of its intent to impose fines and to recover costs. Respondents have a right to request a hearing on the Statement of Charges.

A Consent Order as to Robert Pecord and Capital Asset Group, LLC, was entered on January 12, 2011.


Rick Young – S-07-483-08-CO01 – Consent Order

On August 8, 2008, the Securities Division entered a Consent Order with Rick Young (“Respondent”). The Securities Division had previously entered a Statement of Charges (S-07-483-07-SC01) against Respondent on December 26, 2007. Respondent neither admitted nor denied the Findings of Fact and Conclusions of Law in entering into the Consent Order. However, it was agreed and ordered that Respondent cease and desist from any violations of RCW 21.20.010, the anti-fraud provisions of the Securities Act of Washington; RCW 21.20.040, the broker and salesperson registration provision; and RCW 21.20.140, the securities registration provision. Respondent also agreed to pay $2500 for investigative costs. Respondent waived his right to a hearing and to judicial review of the matter.


John M. Erickson - S-06-065-08-CO03 – Consent Order

On August 6, 2008, the Securities Division entered into a Consent Order with John M. Erickson. The Securities Division had previously entered a Summary Order to Cease and Desist and Notice of Intent to Impose Fines and Charge Costs against Malibu Development Corporation; The Meridian on Bainbridge Island LLC; CMHCEH LLC; John M. Erickson; Bruce McCurdy; Christopher M. Heins; and Michael B. Reetz, (collectively “Respondents”) on June 8, 2007. The Division alleged Respondents raised at least $3 million from at least 61 investors, the majority of whom were Washington residents, by offering and selling unregistered promissory notes represented to be secured by real estate. The Securities Division further alleged that certain Respondents acted as unregistered broker-dealers or securities salespersons. The Division also alleged that the offer and sale of securities by the Respondents violated the anti-fraud provisions of the Securities Act of Washington. In settling the matter, Respondent Erickson neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act. Respondent Erickson agreed that he will not to apply for nor be granted a license as a broker-dealer, securities salesperson, investment adviser, or investment adviser representative in the State of Washington for a period of ten (10) years from the date of entry of the consent order. Respondent Erickson agreed to pay a fine of $2,000. Erickson waived his right to a hearing and judicial review of the matter.


Gordon Powers - S-07-044-07-CO01 - Consent Order

On July 31, 2008, the Securities Division entered a Consent Order with Gordon Powers. The Securities Division had previously entered a Statement of Charges against Respondent, Order S-07-044-07-SC01 against EZ Show, Inc., Bernie Day, and Gordon L. Powers Jr. (“Respondents”) on August 20, 2007. The Statement of Charges alleged that Respondents offered and sold securities and a franchise opportunity in Washington State. The Statement of Charges further alleged that Respondents violated the registration and anti-fraud provisions of the Securities Act and the Franchise Investment Protection Act and the disclosure provisions of the Franchise Investment Protection Act while offering and selling the securities and the franchise opportunity. Respondent Powers neither admitted nor denied the allegations, but agreed to cease and desist from violating the registration and anti-fraud provisions of the Securities Act and the Franchise Investment Protection Act and the disclosure provisions of the Franchise Investment Protection Act, not to apply to for an investment adviser representative or securities salesperson license for a period of six (6) months, to pay a fine of $30,000, and to pay costs of $2,500. Respondent Powers waived his right to a hearing and judicial review of the matter.

A Consent Order was entered as to EZ Show, Inc. on November 9, 2009


Corey Pritchett – S-08-060-08-CO01 – Consent Order

On July 30, 2008, the Securities Division entered a Consent Order with Corey Pritchett (“Respondent”). The Securities Division had previously entered a Statement of Charges (S-08-060-08-SC01) against Respondent on February 25, 2008. Respondent neither admitted nor denied the Findings of Fact and Conclusions of Law in entering into the Consent Order. However, it was agreed and ordered that Respondent cease and desist from any violations of RCW 21.20.010, the anti-fraud provisions of the Securities Act of Washington; RCW 21.20.040, the broker and salesperson registration provision; and RCW 21.20.140, the securities registration provision. Respondent waived his right to a hearing and to judicial review of the matter.


James F. Reitan CFP LLC and James F. Reitan - S-08-098-08-FO01 - Final Order

On July 23, 2008, the Securities Division entered a Final Order to Revoke Registration and Impose Fines against James F. Reitan CFP LLC and James F. Reitan (collectively “Respondents”). The Securities Division had entered a Statement of Charges in this same matter on April 21, 2008. Respondents failed to keep the books and records required of investment advisers under WAC 460‑24A‑200(1)(b), WAC 460‑24A‑200(1)(f), and WAC 460‑24A‑200(1)(j). Respondents engaged in an unethical business practice under WAC 460-24A-220(16) by failing to enter into written advisory contracts with clients. Pursuant to RCW 21.20.110(1), the Final Order revokes the investment adviser and investment adviser representative registration of the Respondents and imposes a $5,000 fine. Respondents have a right to request judicial review of this matter.


King Pastry & Deli, Nonna Verd - S-07-302-08-SC01 - Statement of Charges

On July 23, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, To Charge Costs, and To Impose Fines (“Statement of Charges”) against King Pastry & Deli and Nonna Verd (“Respondents”). King Pastry & Deli was a pastry shop and delicatessen located in King County, Washington. The Statement of Charges alleges that Respondents offered and sold unregistered securities in Washington State. The Statement of Charges further alleges that Verd personally guaranteed the investments. The Statement of Charges further alleges that Respondents failed to disclose that much of the investment money went toward paying off previous investors. The Statement of Charges further alleges that Respondents violated the registration and anti-fraud provisions of the Securities Act. Respondents have a right to request a hearing on the Statement of Charges.


Robert D. Brooks and Blaine Marine Services (2000), LLC - S-07-450-08-CO01 - Consent Order

On July 23, 2008, the Securities Division entered a Consent Order with Robert D. Brooks and Blaine Marine Services (2000), LLC (collectively “Respondents”). The Securities Division had previously entered a Statement of Charges (S-07-450-07-SC01) against Respondents on May 14, 2008. Respondents neither admitted nor denied the Findings of Fact and Conclusions of Law in entering into the Consent Order. However, it was agreed and ordered that Respondents cease and desist from any violations of RCW 21.20.010, the anti-fraud provisions of the Securities Act of Washington; RCW 21.20.040, the broker and salesperson registration provision; and RCW 21.20.140, the securities registration provision. Respondents also agreed to pay $1000 for investigative costs. Respondents each waived their right to a hearing and to judicial review of the matter.


New Wave Marine Propulsion, Inc. and Joseph Mueller d/b/a New Wave Propulsion - S-08-043-08-CO01 - Consent Order

On July 18, 2008, the Securities Division entered into a Consent Order with New Wave Marine Propulsion, Inc. and Joseph Mueller d/b/a New Wave Propulsion (“Respondents”) vacating the Final Order (S-08-043-08-FO01) which had been issued against Respondents on June 20, 2008. The Securities Division had previously entered a Statement of Charges (S-08-043-08-SC01) on the same matter on March 4, 2008. Respondents neither admitted nor denied the Findings of Fact and Conclusions of Law in entering into the Consent Order. However, it was agreed and ordered that Respondents cease and desist from any violations of RCW 21.20.010, the anti-fraud provisions of the Securities Act of Washington; RCW 21.20.040, the broker and salesperson registration provision; and RCW 21.20.140, the securities registration provision. Respondents also agreed to pay $1500 for investigative costs. Respondents each waived their right to a hearing and to judicial review of the matter.


Stevens Coffee Company LLC dba Java Girls tm; Steven McDaniel - S-07-560-08-CO01 - Consent Order

On July 17, 2008, the Securities Division entered into a Consent Order with Stevens Coffee Company LLC dba Java Girls tm and Steven McDaniel (collectively “Respondents”). The Securities Division had previously entered a Statement of Charges against the Respondents, S-07-560-08-SC01, on March 7, 2008. The Division alleged that Respondents offered a coffee franchise using the trade-marked name Java Girls to at least three Washington residents while not registered under the Franchise Investment Protection Act of Washington. The Division further alleged that Respondents violated the anti-fraud provision of the Franchise Investment Protection Act of Washington in connection with the offer of the franchise. Respondents neither admitted nor denied the Findings of Fact and Conclusions of Law, but agreed to cease and desist from violating the registration and anti-fraud provisions of the Franchise Investment Protection Act of Washington. Respondents each waived their right to a hearing and to judicial review of the matter.


Gold Coin, Inc., James Emmerling - S-07-220-08-FO01 - Final Order

On July 10, 2008, the Securities Division entered a Final Order against Gold Coin, Inc. and James Emmerling (collectively “Respondents”). The Securities Division previously entered a Statement of Charges against Respondents in the same matter on June 5, 2008. Respondents operated a vending machine business and offered and sold a business opportunity to operate a vending machine business. The Statement of Charges alleged that Respondents sold at least two business opportunities in the State of Washington prior to obtaining a business opportunity license in Washington, and failed to disclose prior sales to the Securities Division during the business opportunity licensing process. The Statement of Charges further alleged that Respondents committed unlawful acts under the Business Opportunity Fraud Act by filing a Disclosure Document with the Securities Division that failed to disclose material information concerning litigation and prior sales, and supplying this Disclosure Document to subsequent purchasers. The Securities Division orders Respondents to cease and desist from violating the registration and unlawful acts provisions of the Business Opportunity Fraud Act of Washington. Respondents have a right to request judicial review of this matter.


Roanan Corporation and Walter Alexander Moa, Jr. - S-08-007-08-CO01 - Consent Order

On July 1, 2008, the Securities Division entered into a Consent Order with Respondents, Roanan Corporation and Walter Alexander Moa, Jr. The Securities Division had previously entered a Statement of Charges against Respondents. The Statement of Charges alleged that from 2006 through 2008, Respondents offered and sold approximately $600,000 worth of stock and promissory notes to approximately 28 investors. Without admitting or denying the Findings of Fact and Conclusions of Law set forth in the Consent Order, Respondents each agreed to cease and desist from offering or selling unregistered securities and from violating the anti-fraud provision of the Securities Act. Walter Alexander Moa, Jr. paid $7,500 for investigative costs. Respondents each waived their rights to a hearing and to judicial review of this matter.


New Wave Marine Propulsion, Inc. and Joseph Mueller d/b/a New Wave Propulsion - S-08-043-08-FO01 - Final Order

On June 20, 2008, the Securities Division entered Findings of Fact and Conclusions of Law and Final Order to Cease and Desist and to Charge Costs against New Wave Marine Propulsion, Inc. and Joseph Mueller d/b/a New Wave Propulsion (“Respondents”). The Securities Division had previously entered a Statement of Charges (S-08-043-08-SC01) on the same matter on March 4, 2008. Respondents solicited Washington investors by placing advertisements on the internet. Respondents offered and/or sold securities in the form of investment contracts or promissory notes. Respondents told potential investors the money would be used for travel and legal expenses in order to close a lucrative deal selling the rights to a marine hybrid system that they had developed that would increase a vessel’s gas mileage to 8 times. Respondents violated the registration and anti-fraud provisions of the Securities Act while offering and/or selling the securities. The Securities Division orders the Respondents to cease and desist from violating the Securities Act of Washington. The Division also orders Respondents to pay investigative costs of $1500. Respondents have the right to request judicial review of this matter.

A Consent Order was entered in this matter on July 18, 2008.


Peter Mooyman and PIPS, Inc. - S-06-234-08-CO01 - Consent Order

On June 19, 2008, the Securities Division entered a Consent Order with Peter Mooyman. The Securities Division had previously entered a Statement of Charges (S-06-234-07-SC01) against Peter Mooyman and PIPS, Inc. on December 31, 2007. Mooyman neither admitted nor denied the Findings of Fact and Conclusions of Law in entering into the Consent Order. However, it was agreed and ordered that Mooyman cease and desist from any violations of RCW 21.20.010, the anti-fraud provisions of the Securities Act of Washington; RCW 21.20.040, the broker and salesperson registration provision; and RCW 21.20.140, the securities registration provision. Mooyman waived his right to a hearing and to judicial review of the matter.


Wayne K. West, Paul A. Burns, Wortham Oil & Gas Enterprises, LLC, Wortham Oil & Gas aka Wortham Realty Inc., and WOGE/WOG Ellison Well #1 Joint Venture, S-07-256-08-FO01 - Final Order

On June 5, 2008, the Securities Division entered a Final Order to Cease and Desist and Impose Fines against Paul A. Burns, Wortham Oil & Gas Enterprises, LLC, Wortham Oil & Gas aka Wortham Realty Inc. and WOGE/WOG Ellison Well #1 Joint Venture (collectively “Respondents”). The Division previously entered a Statement of Charges in the same matter on December 3, 2007. Respondents represent that they engage in oil and gas exploration in Texas. Respondents raised $98,000 from two Washington State residents by offering and selling unregistered interests in an oil and gas drilling project located in Leon County, Texas. Certain Respondents acted as unregistered broker-dealers and/or securities salespersons, and the offer and sale of securities by Respondents violated the anti-fraud provision of the Securities Act of Washington. The Securities Division orders the Respondents to cease and desist from violating the Securities Act of Washington. The Division also orders each Respondent to pay a fine of $5,000. Respondents failed to request a hearing on the Statement of Charges. Respondents have a right to request judicial review of this matter. The charges against Wayne K. West are still pending


Gold Coin, Inc., James Emmerling - S-07-220-08-SC02 - Statement of Charges

On June 5, 2008, the Securities Division entered a Statement of Charges against Gold Coin, Inc. and James Emmerling (collectively “Respondents”). Respondents operate a vending machine business and offer and sell a business opportunity to operate a vending machine business. The Statement of Charges alleges that Respondents sold at least two business opportunities in the State of Washington prior to obtaining a business opportunity license in Washington, and failed to disclose prior sales to the Securities Division during the business opportunity licensing process. The Statement of Charges further alleges that Respondents committed unlawful acts under the Business Opportunity Fraud Act when Respondents filed a Disclosure Document with the Securities Division that failed to disclose material information concerning litigation and prior sales, and when Respondents supplied this Disclosure Document to subsequent purchasers. The Securities Division intends to order Respondents to cease and desist from violating the registration and unlawful acts provisions of the Business Opportunity Fraud Act of Washington. Respondents have a right to request a hearing on this matter.

A Final Order as to Gold Coin, Inc. and James Emmerling was entered on July 10, 2008.


Emerald Coin LLC, Emerald Coin Vending, Inc., Jason Nelson - S-07-220-07-SC01 - Statement of Charges

On June 5, 2008, the Securities Division entered a Statement of Charges against Emerald Coin LLC, Emerald Coin Vending, Inc., Jason Nelson (collectively “Respondents”). Respondents operate a vending machine business and offer and sell a business opportunity to operate a vending machine business. The Statement of Charges alleged that Respondents sold at least one business opportunity in the State of Washington during a period of time the Respondent was not licensed to sell business opportunities in Washington. The Statement of Charges further alleged that Respondent committed an unlawful act by filing documents with the Securities Division that failed to disclose these sales. The Statement of Charges further alleged that Respondents committed unlawful acts under the Business Opportunity Fraud Act when Respondents filed a Disclosure Document with the Securities Division that failed to disclose material information concerning litigation and a restrictive order issued against the Respondents, filed a renewal application which omitted material information, and failed to amend the Disclosure Documents on file with the Securities Division to reflect changes in material information. The Securities Division intends to order Respondents to cease and desist from violating the registration and unlawful acts provisions of the Business Opportunity Fraud Act of Washington. Respondents have a right to request a hearing.

An Amended Statement of Charges was entered in this matter on April 24, 2009.

A Final Order was entered in this matter on July 13, 2009.


Ward R. Brown dba Pacific Sales; Janice R. Brown dba Lavender House; Brown’s Antiques and Furnishings; Ward R. Brown; Janice R. Brown - S-07-170-08-CO01 - Consent Order

On June 5, 2008, the Securities Division entered into a Consent Order with Ward R. Brown and Ward R. Brown dba Pacific Sales (collectively “Respondents”). The Securities Division had previously entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist and Recover Costs against Ward R. Brown dba Pacific Sales; Janice R. Brown dba Lavender House; Brown’s Antiques and Furnishings; Ward R. Brown; and Janice R. Brown. The Division alleged that Respondents offered and sold investments, in the form of promissory notes, to at least five Washington residents. The Division alleged that Respondents raised at least $856,670.67, which was used to finance two antique stores and at least two adult family homes. The Division further alleged that Respondents offered and sold unregistered securities, acted as unregistered broker-dealers or securities salespersons, and violated the anti-fraud provisions of the Securities Act of Washington. Respondents neither admitted nor denied the Findings of Fact and Conclusions of Law. It was agreed and ordered that Respondents shall cease and desist from violating the securities registration, broker-dealer and/or securities salesperson registration and anti-fraud provisions of the Securities Act of Washington. Respondent Ward R. Brown agreed to pay $750 for investigative costs. The Respondents waived their right to a hearing and to judicial review of this matter. The charges against Janice R. Brown, Janice R. Brown dba Lavender House and Brown’s Antiques and Furnishings are still pending.


Michael B. Reetz - S-06-065-07-CO02 - Consent Order

On June 4, 2008, the Securities Division entered into a Consent Order with Michael B. Reetz. The Securities Division had entered a Summary Order to Cease and Desist and Notice of Intent to Impose Fines and Charge Costs against Malibu Development Corporation; The Meridian on Bainbridge Island LLC; CMHCEH LLC; John M. Erickson; Bruce McCurdy; Christopher M. Heins; and Michael B. Reetz, (collectively “Respondents”) on June 8, 2007. The Division alleged Respondents raised at least $3 million from at least 61 investors, the majority of whom were Washington residents, by offering and selling unregistered promissory notes represented to be secured by real estate. The Securities Division further alleged that certain Respondents acted as unregistered broker-dealers or securities salespersons. The Division also alleged that the offer and sale of securities by the Respondents violated the anti-fraud provisions of the Securities Act of Washington. In settling the matter, Respondent Reetz neither admitted nor denied the allegations, but agreed to cease and desist from violating the registration and anti-fraud provisions of the Securities Act. Respondent Reetz agreed to pay a fine of $2,000 prior to entry of the consent order. Respondent Reetz waived his right to a hearing and judicial review of the matter.


Gary Young - S-08-124-08-SC01 - Statement of Charges

On May 21, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Impose Fines and to Charge Costs (“Statement of Charges”) against Gary Young (“Respondent”). The Statement of Charges alleges that Respondent offered and sold unregistered securities in Washington State for Agricultural Commodities Association Northwest or ACANW. The Statement of Charges alleges that Respondent said that the company was in the business of manufacturing a wall panel similar to a cubicle divider and needed funds to build a plant. The Statement of Charges further alleges that Respondent personally guaranteed that the investment would return 100% in thirty days. The Statement of Charges further alleges that Respondent violated the registration and anti-fraud provisions of the Securities Act. Respondent has a right to request a hearing on the Statement of Charges.

A consent order was entered in this matter on December 29, 2008.


Christopher M. Heins, CMHCEH, LLC - S-06-065-07-CO01 - Consent Order

On May 21, 2008, the Securities Division entered into a Consent Order with Christopher M. Heins and CMHCEH, LLC. The Securities Division had entered a Summary Order to Cease and Desist and Notice of Intent to Impose Fines and Charge Costs against Malibu Development Corporation; The Meridian on Bainbridge Island LLC; CMHCEH, LLC; John M. Erickson; Bruce McCurdy; Christopher M. Heins; and Michael B. Reetz, (collectively “Respondents”) on June 8, 2007. The Division alleged Respondents raised at least $3 million from at least 61 investors, the majority of whom were Washington residents, by offering and selling unregistered promissory notes represented to be secured by real estate. The Securities Division further alleged that certain Respondents acted as unregistered broker-dealers or securities salespersons. The Division also alleged that the offer and sale of securities by the Respondents violated the anti-fraud provisions of the Securities Act of Washington. In settling the matter, Respondents Heins and CMHCEH LLC neither admitted nor denied the allegations, but agreed to cease and desist from violating the registration and anti-fraud provisions of the Securities Act. Respondent Heins agreed that he will not to apply for nor be granted a license as a broker-dealer, securities salesperson, investment adviser, or investment adviser representative in the State of Washington for a period of three (3) years following the date of entry of the consent order. Respondent Heins agreed to pay a fine of $7,000, and Respondents Heins and CMHCEH LLC agreed to pay investigative costs of $5,000 prior to entry of the consent order. Respondents Heins and CMHCEH LLC waived their rights to a hearing and judicial review of the matter.


Michael Kerner – S-08-014-08-FO01 – Final Order

On May 20, 2008, the Securities Division entered a Final Order against Michael Kerner (“Respondent”). The Division previously entered a Statement of Charges (S-08-014-08-SC01) in the same matter on April 7, 2008. Respondent offered and sold an investment in Taecan.com stock shares to at least one investor. Respondent raised at least $50,000 from the investor. Respondent offered unregistered securities and acted as an unregistered broker-dealer or securities salesperson. The offer and sale of securities by the Respondent violated the anti-fraud provisions of the Securities Act of Washington. The Securities Division orders Respondent to cease and desist from violating the Securities Act of Washington. The Securities Division also orders the Respondent to pay investigative costs of $2,000. Respondent failed to request a hearing on the Statement of Charges. Respondent has a right to request judicial review of this matter.


Robert D. Brooks and Blaine Marine Services (2000), LLC - S-07-450-07-SC01 - Statement of Charges

On May 14, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist and to Charge Costs against Robert D. Brooks and Blaine Marine Services (2000), LLC (collectively “Respondents”). The Statement of Charges alleges that Respondents offered and sold investments in a boat salvage business to at least five Washington residents. Respondents raised at least $50,000 from Washington residents. The Statement of Charges further alleges that Respondents offered unregistered securities and acted as unregistered broker-dealers or securities salespersons. The Statement of Charges additionally alleges that the offer and sale of securities by the Respondents violated the anti-fraud provisions of the Securities Act of Washington. The Securities Division intends to order Respondents to cease and desist from violating the Securities Act of Washington, and gives notice of its intent to recover costs. Respondents have a right to request a hearing on the Statement of Charges.

A Consent Order was entered in this matter on July 23, 2008.


Clarion Trust Company, Hutchins Development Project, Hutchins Associates, Inc, and American Providence Financial Corp., Randy Maine, Dennis Sharp and Wayne James - S-06-178-08-SC01 - Statement of Charges

On May 7, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, Recover Costs and to Deny Future Securities Registration against Clarion Trust Company, Hutchins Development Project, Hutchins Associates, Inc, and American Providence Financial Corp., Randy Maine, Dennis Sharp and Wayne James. The Division alleges that from June 1996 and continuing through May 2006, Maine, Sharp and James solicited investors for real estate development in Washington and Texas in the companies named above. Maine was securities salesperson with PFS Investments, Inc. from 1994 to 1996 and Sharp was a securities salesperson with PFS Investments, Inc. from 1991 to 2006. The Statement of Charges alleges that the Respondents offered unregistered securities, acted as unregistered broker-dealers or securities salespersons, and violated the anti-fraud provisions of the Securities Act of Washington. The Securities Division ordered the Respondents to cease and desist from violating the securities registration, broker-dealer and/or securities salesperson registration and anti-fraud provisions of the Securities Act of Washington. Respondents have a right to request a hearing on the Statement of Charges.

A Consent Order was entered as to Dennis Sharp on April 8, 2009.


Roanan Corporation and Walter Alexander Moa, Jr. - S-08-007-08-SC01 - Statement of Charges

On May 7, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist against Respondents, Roanan Corporation and Walter Alexander Moa, Jr. Roanan Corporation is a Washington corporation that owns mining claims and land near Hyder, Alaska. The Statement of Charges alleges that Respondents each violated the registration provisions of the Washington Securities Act by offering and selling unregistered promissory notes and stock totaling approximately $600,000 to approximately 28 investors from January 2006 through February 2008. The Statement of Charges also alleges that each Respondent violated the anti-fraud provisions of the Securities Act by failing to disclose material information about the investments. The Securities Division is seeking costs of $15,000 from Walter Alexander Moa, Jr. Each Respondent has the right to request a hearing on the Statement of Charges.

A Consent Order was issued in this matter on July 1, 2008.


Arlan Galbraith and Pigeon King International, Inc. – S-08-040-08-CO01 - Consent Order

On May 2, 2008, the Securities Division entered a Consent Order with Arlan Galbraith and Pigeon King International, Inc. (collectively “Respondents”). The Securities Division had previously entered a Statement of Charges (S-08-040-08-SC01) against Respondents. The Statement of Charges alleged that Respondents offered a business opportunity to own and operate a pigeon breeding stock business while not registered as a business opportunity under the Washington State Business Opportunity Fraud Act. Respondents neither admitted nor denied the Findings of Fact and Conclusions of Law, but they agreed to cease and desist from violating the registration and anti-fraud provisions of the Business Opportunity Fraud Act of Washington. Respondents also agreed to pay $1000 for investigative costs. Respondents each waived their right to a hearing and to judicial review of the matter.


Morgan Stanley & Co. Incorporated - S-08-103-08-CO01 - Consent Order

On April 30, 2008, the Securities Division entered into a consent order with Morgan Stanley & Co., Inc. in connection with Morgan Stanley’s failure to register certain equity and fixed income securities that were offered in Washington State. Morgan Stanley discovered the failure to register the securities and reported it to the Securities Division. The failure to register securities began in 1997 after Morgan Stanley merged with Dean Witter and continued for eight years. In the consent order Morgan Stanley, without admitting or denying the consent order’s findings of fact, agreed to cease and desist from sales of unregistered securities in violation of Washington law and further agreed to change its policies to ensure compliance with the law. It paid $207,953 as a civil monetary penalty. In the entry of the consent order, Morgan Stanley waived its right to a hearing and judicial review of this matter.


Gitan, LLC; Mark Moroney; Brian Thompson - S-07-453-08-SC01 - Statement of Charges

On April 23, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Charge Costs, and Impose Fines (“Statement of Charges”) against Gitan, LLC; Mark Moroney; and Brian Thompson, (“Respondents”). The Statement of Charges alleges that while in Washington State Respondents offered and sold unregistered securities in a limited liability company that purportedly developed and marketed mold resistant paints and coatings. The Statement of Charges further alleges that Respondents violated the registration and anti-fraud provisions of the Securities Act. Respondents have a right to request a hearing on the Statement of Charges.

A Final Order was entered October 9, 2008 as to Mark Moroney.


Fenco USA, Inc., Ui Sup Lee - S-07-008-07-CO01 - Consent Order

On April 23, 2008, the Securities Division entered into a Consent Order with Fenco USA, Inc. and Ui Sup Lee. The Securities Division had entered a Statement of Charges against Fenco USA, Inc. and Ui Sup Lee (collectively “Respondents”) on April 11, 2007. The Statement of Charges alleged that Respondents sold an unregistered cigar and wine store franchise opportunity to a Washington State resident and failed to disclose material information concerning the franchise opportunity. The Respondents neither admitted nor denied the Findings of Fact or Conclusions of Law, but agreed in the Consent Order to cease and desist from violating the registration and anti-fraud provisions of the Franchise Investment Protection Act of Washington. Respondents waived their rights to a hearing and judicial review of the matter.


 
Day-By-Day Gourmet, LLC - S-07-469-08-CO01 - Consent Order

On April 22, 2008, the Securities Division entered into a Consent Order with Day-By-Day Gourmet, LLC. (Consent Order No. S-07-469-08-CO01) in settlement of a prior Statement of Charges and Notice of Intent to Enter Stop Order Revoking Registration entered on December 31, 2007.  Day-By-Day Gourmet, LLC is the seller of franchises that entail the retail sale of deli items as well as pre-assembled meals and other items for customers to take home to finish preparing.  The Division had alleged in the Statement of Charges that the company had failed to disclose in its franchise registration documentation that its Chief Executive Officer is the subject of a previous Securities Division Consent Order (Consent Order Number S-05-236-06-CO01 in the matter of Alternative Capital, LLC and Bradford Vorhees entered November 13, 2006) to settle allegations that the named respondents violated the investment adviser and investment adviser representative registration requirements of the Securities Act of Washington.  Day-By-Day Gourmet, LLC, among other things, agreed in the Consent Order to disclose this matter in registration documentation and to the company’s employees and agents who offer the franchise as well as to reimburse the Securities Division $700 for its costs of investigation.    Day-By-Day Gourmet, LLC also waived its right to a hearing or other further proceedings in the matter.


 
Patricia Weis - S-08-011-08-CO03 - Consent Order

On April 22, 2008, the Securities Division entered a Consent Order with Patricia Weis.    The Securities Division had previously entered a Statement of Charges (SC-08-011-08-SC01) against Corps Investment Group, LLC, Hezekiah Corppetts, Patricia Weis and Milton Johnson (collectively “Respondents”).  The Statement of Charges alleged that Respondents offered a business opportunity to own and operate a mail-order classified advertising business system while not registered as a business opportunity under the Washington State Business Opportunity Fraud Act of Washington.  Patricia Weis neither admitted nor denied the Findings of Fact and Conclusions of Law, but agreed to cease and desist from violating the registration and anti-fraud provisions of the Business Opportunity Fraud Act of Washington.  Patricia Weis waived her right to a hearing and to judicial review of this matter.


James F. Reitan CFP LLC and James F. Reitan - S-08-098-08-SC01 - Statement of Charges

On April 21, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Revoke Registration and Impose Fines against James F. Reitan CFP LLC and James F. Reitan (collectively “Respondents”). Respondents are in the business of providing financial planning services. The Statement of Charges alleges that Respondents failed to keep the books and records required of investment advisers under WAC 460 24A 200(1)(b), WAC 460 24A 200(1)(f), and WAC 460 24A 200(1)(j). The Statement of Charges further alleges that Respondents engaged in an unethical business practice under WAC 460-24A-220(16) by failing to enter into written advisory contracts with clients. The Securities Division gave notice of its intent to revoke the investment adviser and investment adviser representative registration of the Respondents and impose a $5,000 fine pursuant to RCW 21.20.110(1). Respondents have a right to request a hearing on the Statement of Charges.

A Final Order was issued in this matter on July 23, 2008


 
Donna Jean Parker - S-07-230-08-CO01 - Consent Order

On April 21, 2008, the Securities Division entered into a Consent Order with Donna Jean Parker (“Respondent”).  The Securities Division had previously entered a Summary Order Suspending Securities Salesperson and Investment Adviser Representative Registration and Notice of Intent to Revoke Registration against Respondent on February 1, 2008.  The Division alleged that Parker, while employed as a securities salesperson and investment adviser representative for Merrill Lynch, engaged in dishonest and unethical practices by forging signatures of employees at Merrill Lynch, forging the signature of a customer, converting $20,000 in customer funds, and executing a transaction on behalf of a customer without authorization to do so.  Respondent neither admitted nor denied the Findings of Fact and Conclusions of Law.  It was agreed and ordered that Respondent’s securities salesperson and investment adviser representative licenses shall be revoked.  It was further agreed and ordered that Respondent shall not apply for registration as a broker-dealer, investment adviser, securities salesperson, or investment adviser representative for ten years from the date of entry of the Consent Order.  The Respondent agreed to pay $2,000 for investigation costs.  Respondent waived her right to a hearing and to judicial review of this matter.



Milton Johnson - S-08-011-08-CO02 - Consent Order

On April 16, 2008, the Securities Division entered a Consent Order with Milton Johnson.  The Securities Division had previously entered a Statement of Charges (S-08-011-08-SC01) against Corps Investment Group, LLC, Hezekiah Corppetts, Patricia Weis and Milton Johnson (collectively “Respondents”).  The Statement of Charges alleged that Respondents offered a business opportunity to own and operate a mail-order classified advertising business system while not registered as a business opportunity under the Washington State Business Opportunity Fraud Act of Washington.  Milton Johnson neither admitted nor denied the Findings of Fact and Conclusions of Law, but agreed to cease and desist from violating the registration and anti-fraud provisions of the Business Opportunity Fraud Act of Washington.  Milton Johnson waived his right to a hearing and to judicial review of the matter.
 


Corps Investment Group, LLC and Hezekiah Corppetts - S-08-011-08-CO01 - Consent Order

On April 16, 2008, the Securities Division entered a Consent Order with Corps Investment Group, LLC and Hezekiah Corppetts.  The Securities Division had previously entered a Statement of Charges (S-08-011-08-SC01) against Corps Investment Group, LLC, Hezekiah Corppetts, Patricia Weis and Milton Johnson (collectively “Respondents”).  The Statement of Charges alleged that Respondents offered a business opportunity to own and operate a mail-order classified advertising business system while not registered as a business opportunity under the Washington State Business Opportunity Fraud Act of Washington.  Corps Investment Group, LLC and Hezekiah Corppetts neither admitted nor denied the Findings of Fact and Conclusions of Law, but agreed to cease and desist from violating the registration and anti-fraud provisions of the Business Opportunity Fraud Act of Washington.  Corps Investment Group, LLC and Hezekiah Corppetts agreed to pay $400 for investigation costs.  Corps Investment Group, LLC and Hezekiah Corppetts each waived their right to a hearing and to judicial review of the matter.



Kevin P. Dilley, Respondent - S-07-392-08-SC01 - Statement of Charges              

On April 9, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Charge Costs, and Impose Fines (“Statement of Charges”) against Kevin P. Dilley (“Respondent”).  Respondent, a former registered securities salesperson in the State of Washington, received money from customers, did not make the promised investments, and failed to return their money. The Statement of Charges alleges that Respondent offered and sold unregistered securities in Washington State.  The Statement of Charges further alleges that Respondent violated the registration and anti-fraud provisions of the Securities Act.  Respondent has a right to request a hearing on the Statement of Charges.

A Consent Order was entered in this matter on February 25, 2010.



Michael Kerner - S-08-014-08-SC01 - Statement of Charges

On April 7, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist and to Charge Costs against Michael Kerner (“Respondent”). Respondent offered and sold an investment in Taecan.com stock to at least one investor. Taecan.com Inc. was ostensibly a private internet start-up company involved in providing on-line services. Respondent received at least $50,000 from the investor. The Statement of Charges alleges that Respondent offered unregistered securities and acted as an unregistered broker-dealer or securities salesperson. The Statement of Charges further alleges that the offer and sale of securities by the Respondent violated the anti-fraud provisions of the Securities Act of Washington. The Securities Division intends to order Respondent to cease and desist from violating the Securities Act of Washington, and gives notice of its intent to recover costs. Respondent has a right to request a hearing on the Statement of Charges.

A Final Order was entered in this matter on May 20, 2008.


The Institute For Financial Learning Group of Companies, Inc.; Strategic Metals, Inc.; Merendon Mining Corporation, Ltd.; Milowe A. Brost; Ward K. Capstick; Kristina J. Katayama; Ronald R. Case; Warren L. Bosma, - S-04-124-08-SC01 - Statement of Charges

On March 21, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order To Cease and Desist, To Impose Fines, and To Charge Costs (“Statement of Charges”) against The Institute For Financial Learning Group of Companies, Inc.; Strategic Metals, Inc.; Merendon Mining Corporation, Ltd.; Milowe A. Brost; Ward K. Capstick; Kristina J. Katayama; Ronald R. Case; and Warren L. Bosma (“Respondents”). The Institute For Financial Learning was organized in Alberta, Canada, held itself out as an educational service corporation, and facilitated “wealth building seminars” in the State of Washington. The Statement of Charges alleges that Respondents offered and sold over $10,000,000 of unregistered securities in mining or mining related businesses to 49 investors, including 43 Washington residents. The Statement of Charges further alleges that Respondents violated the licensing, registration, and anti-fraud provisions of the Securities Act while offering the securities. Respondents have a right to request a hearing on the Statement of Charges.

A Consent Order as to Kristina J. Bass was entered on April 19, 2013.

A Consent Order as to Ward K. Capstick was issued on December 3, 2012.

A Consent Order as to Ronald R. Case was issued on October 22, 2012.

A Consent Order as to Warren L. Bosma was entered on September 19, 2012.


Arlan Galbraith and Pigeon King International, Inc. - S-08-040-08-SC01 - Statement of Charges

On March 19, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist (“Statement of Charges”) against Arlan Galbraith and Pigeon King International, Inc. (collectively “Respondents”). The Statement of Charges alleges that Respondents offered a business opportunity to own and operate a pigeon breeding stock business while not registered as a business opportunity under the Washington State Business Opportunity Fraud Act of Washington. The Securities Division intends to order Respondents to cease and desist from violating the registration, disclosure and anti-fraud provisions of the Business Opportunity Fraud Act of Washington. Respondents have a right to request a hearing on the Statement of Charges.

A Consent Order was entered in this matter on May 2, 2008.


American Fiber Green Products and Ken McCleave, Respondents - S-05-193-07-FO01 - Final Order

On March 13, 2008, the Securities Division entered Findings of Fact and Conclusions of Law and Final Order to Cease and Desist and to Impose Fines. The Securities Division had previously entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist and Impose Fines (“Statement of Charges”) against American Fiber Green Products and Ken McCleave (“Respondents”). S-05-193-07-SC02. The Statement of Charges alleged that American Fiber Green Products, which purportedly manufactured products out of recycled fiberglass using a patented process, held three meetings in King County where it offered and sold shares of American Fiber Green Products to Washington residents. The Statement of Charges further alleged that Respondents violated the registration and anti-fraud provisions of the Securities Act when offering and selling the securities. Respondents may seek judicial review of the matter.


William Doman - S-06-085-07-SC01 - Statement of Charges

On March 13, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order To Suspend Securities Salesperson License, To Impose Fines and To Charge Costs (“Statement of Charges”) against William Doman (“Respondent”). The Statement of Charges alleges that in a two year period Respondent offered and sold to customers, some of whom were elderly, variable annuities through the means of unsuitable recommendations and misrepresentations of facts. It is also alleged that Respondent failed to disclose true and complete information on variable annuity product applications and annuity replacement forms. The Statement of Charges alleges that Respondent violated the licensing, suitability, and anti-fraud provisions of the Securities Act while offering these securities. Respondent has a right to request a hearing on the Statement of Charges.

An Amended Statement of Charges was entered on May 19, 2009.

A Consent Order was entered on June 18, 2009.


Glen Stroud, Dan Hammond, Interlake Chemicals International Ltd. Corp. - S-07-293-07-CO01 - Consent Order.

On March 12, 2008, the Securities Division entered into a Consent Order with Glen Stroud, Dan Hammond, and Interlake Chemicals International Ltd. Corp. (collectively “Respondents”). The Securities Division had previously entered a Statement of Charges against Respondents, S-07-293-07-SC01, on December 3, 2007. The Division alleged that Respondents offered and sold two business opportunities while not registered under the Business Opportunity Fraud Act of Washington. The Securities Division further alleged that Respondents violated the disclosure document and anti-fraud provisions of the Business Opportunity Fraud Act of Washington. Respondents neither admitted nor denied the Findings of Fact and Conclusions of Law, but agreed to cease and desist from violating the registration, disclosure document, and anti-fraud provisions of the Business Opportunity Fraud Act of Washington. The Respondents agreed to pay $1,200 for investigation costs. Respondents each waived their right to a hearing and to judicial review of the matter.


United Business Solutions, Inc. dba UBS Group, Inc.; Johnathan Ahlf - S-07-244-08-SC02 - Amended Statement of Charges

On March 10, 2008, the Securities Division entered an Amended Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist (“Amended Statement of Charges”), which amended the Statement of Charges S-07-244-07-SC01 entered on October 8, 2007 against United Business Solutions, Inc. dba UBS Group, Inc. and Johnathan Ahlf (collectively “Respondents”). The Statement of Charges was amended to include a second purchaser of the UBS Group, Inc. opportunity and it was modified to reflect that Ahlf is believed to be the CEO and/or President of UBS Group, Inc. The Amended Statement of Charges alleges that Respondents sold an unregistered tax recovery and related business services franchise opportunity to two Washington State residents. The Amended Statement of Charges further alleges that Respondents failed to disclose material information concerning the franchise opportunity, Respondent Ahlf misrepresented that the franchise was registered in Washington, and Respondent Ahlf did not provide a reasonable basis upon which projections for earnings were based. The Securities Division intends to order Respondents to cease and desist from violating the registration, anti-fraud, and disclosure.

A Final Order regarding this matter was entered on June 18, 2009.


Ward R. Brown dba Pacific Sales; Janice R. Brown dba Lavender House; Brown’s Antiques and Furnishings; Ward R. Brown; Janice R. Brown -
S-07-170-07-SC01 - Statement of Charges.

On March 7, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist and Recover Costs against Ward R. Brown dba Pacific Sales; Janice R. Brown dba Lavender House; Brown’s Antiques and Furnishings; Ward R. Brown; and Janice R. Brown (collectively “Respondents”). The Statement of Charges alleges that Respondents offered and sold investments, in the form of promissory notes, to at least five Washington residents. Respondents raised at least $856,670.67, which was used to finance two antique stores and at least two adult family homes. The Statement of Charges alleges that Respondents offered unregistered securities, acted as unregistered broker-dealers or securities salespersons, and violated the anti-fraud provisions of the Securities Act of Washington. The Securities Division ordered Respondents to cease and desist from violating the securities registration, broker-dealer and/or securities salesperson registration and anti-fraud provisions of the Securities Act of Washington. The Securities Division gave notice of its intent to charge costs. Respondents have a right to request a hearing on the Statement of Charges.

A Consent Order as to Ward R. Brown and Ward R. Brown DBA Pacific Sales was issued June 5, 2008.


Stevens Coffee Company LLC dba Java Girls tm; Steven McDaniel, S-07-560-08-SC01 - Statement of Charges

On March 7, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist against Stevens Coffee Company LLC dba Java Girls tm and Steven McDaniel (collectively “Respondents”). The Statement of Charges alleges that Respondents offered a coffee franchise using the trade-marked name Java Girls to at least three Washington residents while not registered under the Franchise Investment Protection Act of Washington. The Statement of Charges further alleges that Respondents violated the anti-fraud provision of the Franchise Investment Protection Act of Washington in connection with the offer of the franchise. The Securities Division intends to order Respondents to cease and desist from violating the registration and anti-fraud provisions of the Franchise Investment Protection Act of Washington. Respondents have a right to request a hearing on the Statement of Charges.

A Consent Order was issued in this matter on July 17, 2008.


Dale E. Bohnet, Braggdisc Incorporated, and Braggdisk, Inc. - S-07-006-08-FO01 - Final Order

On March 4, 2008, the Securities Division entered a Final Order to Cease and Desist, Bar Registrations, and Impose Fines against Dale E. Bohnet, Braggdisc Incorporated, and Braggdisk, Inc. (collectively “Respondents”). The Division previously entered a Statement of Charges in the same matter on October 11, 2007. Respondents engaged in the business of marketing sales presentation compact disks to mortgage and insurance companies. Respondents raised at least $140,000 from at least five investors, by offering and selling unregistered promissory note and ownership interest investments. Respondent Bohnet acted as an unregistered broker-dealer or securities salesperson. The offer and sale of securities by the Respondents violated the anti-fraud provisions of the Securities Act of Washington. The Securities Division orders the Respondents to cease and desist from violating the Securities Act of Washington and bars any future securities registration. The Division also orders Respondent Bohnet to pay a fine of $20,000. Respondents failed to request a hearing on the Statement of Charges. Respondents have a right to request judicial review of this matter.


New Wave Marine Propulsion, Inc. and Joseph Mueller, dba New Wave Propulsion – S-08-043-08-SC01 – Statement of Charges

On March 4, 2008, the Securities Division entered a Statement of Charges to Cease and Desist and Notice of Intent to Charge Costs against New Wave Marine Propulsion, Inc. and Joseph Mueller d/b/a New Wave Propulsion (collectively “Respondents”). Respondents solicited Washington investors by placing advertisements on the internet. The Statement of Charges alleges that Respondents offered and/or sold securities in the form of investment contracts or promissory notes. The Statement of Charges further alleges that Respondents told potential investors the money would be used for travel and legal expenses in order to close a deal selling the rights to a marine system developed to increase navigational range and gas mileage. The Statement of Charges further alleges that Respondents violated the registration and anti-fraud provisions of the Securities Act while offering and/or selling the securities. Respondents have a right to request a hearing on the Statement of Charges.

A Final Order in this matter was issued June 20, 2008.

A Consent Order was entered in this matter on July 18, 2008.


Boyd Real Estate Investments, Inc.; Kevin G. Boyd; and Marc A. Boyd – S-06-131-07-SC01 – Statement of Charges

On February 29, 2008, the Washington Securities Division entered a Statement of Charges against Boyd Real Estate Investments, Inc. (“BREI”); Kevin G. Boyd; and Marc A. Boyd, Respondents. BREI has its principal place of business in Seattle, Washington. Respondents have each offered and sold promissory notes and deeds of trust to investors. From 2001 to present, Respondents have offered and sold more than $30 million worth of promissory notes to more than 90 investors, many of whom are retired. BREI is not registered to sell its securities in Washington and Respondents are not registered with the Securities Division as securities broker-dealers or securities salespeople. When offering and selling BREI notes and deeds of trust, the Securities Division alleges that Respondents failed to disclose material risks and information about the investments. The Securities Division is seeking an order against Respondents to cease and desist from violations of the anti-fraud and the registration provisions of the Securities Act of Washington. The Securities Division is seeking to revoke Respondents’ exemptions for the offer or sale of notes and evidences of indebtedness. The Securities Division also is seeking a fine of $100,000 against Kevin G. Boyd, a fine of $15,000 against Marc A. Boyd, and costs of $25,000 from Respondents, jointly and severally. Respondents each have the right to request a hearing on the Statement of Charges.

A Consent Order was entered April 30, 2009 as to Boyd Real Estate Investments, Inc and Kevin G. Boyd.

A Consent Order was entered April 30, 2009 as to Marc A. Boyd.


Corey Pritchett – S-08-060-08-SC01 – Statement of Charges

On February 25, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Impose Fines and Charge Costs against Corey Pritchett (“Respondent”). Respondent offered and sold a real estate related investment in the form of a promissory note to at least one Washington resident. Respondent raised at least $2,000 from Washington investors. The Statement of Charges alleges that Respondent offered unregistered securities and acted as an unregistered broker-dealer or securities salesperson. The Statement of Charges further alleges that the offer and sale of securities by the Respondent violated the anti-fraud provisions of the Securities Act of Washington. The Securities Division intends to order Respondent to cease and desist from violating the Securities Act of Washington, and gives notice of its intent to collect fines and recover costs. Respondent has a right to request a hearing on the Statement of Charges.

A Consent Order was issued in this matter on July 30, 2008.


Bernie Day - S-07-044-07-CO03 - Consent Order

On February 25, 2008, the Securities Division entered a Consent Order with Bernie Day. The Securities Division had previously entered a Statement of Charges against Respondent, Order S-07-044-07-SC02 against EZ Show, Inc., Bernie Day, and Gordon L. Powers Jr. (“Respondents”) on August 20, 2007. The Statement of Charges alleged that Respondents offered and sold securities and a franchise opportunity in Washington State. The Statement of Charges further alleged that Respondents violated the registration and anti-fraud provisions of the Securities Act and the Franchise Investment Protection Act and the disclose provision of the Franchise Investment Protection Act while offering and selling the securities and the franchise opportunity. Respondent Day neither admitted nor denied the allegations, but agreed to cease and desist from violating the registration and anti-fraud provisions of the Securities Act and the Franchise Investment Protection Act and the disclose provision of the Franchise Investment Protection Act. Respondent Day waived her right to a hearing and judicial review of the matter.

A Consent Order was entered as to EZ Show, Inc. on November 9, 2009


Corps Investment Group, LLC; Hezekiah Corppetts; Patricia Weis and Milton Johnson – S-08-011-08-SC01 – Statement of Charges

On February 25, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist (“Statement of Charges”) against Corps Investment Group, LLC; Hezekiah Corppetts; Patricia Weis and Milton Johnson (collectively “Respondents”). The Statement of Charges alleges that Respondents offered a business opportunity to own and operate a mail-order classified advertising business system while not registered as a business opportunity under the Washington State Business Opportunity Fraud Act of Washington. The Securities Division intends to order Respondents to cease and desist from violating the registration, disclosure and anti-fraud provisions of the Business Opportunity Fraud Act of Washington. Respondents have a right to request a hearing on the Statement of Charges.


Poulson Investing, LLC; Joshua Poulson and Mayela Poulson - S-07-565-08-SC01 – Statement of Charges

On February 25, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Impose Fines and Charge Costs against Poulson Investing, LLC, Joshua Poulson and Mayela Poulson (collectively “Respondents”). The Statement of Charges alleges that Respondents offered and sold securities in the form of promissory notes. Respondents told investors that they would earn 2% per month and that the investments would be secured by real estate. Respondents raised at least $90,000 from at least 3 Washington investors. The Statement of Charges further alleges that Respondents violated the registration and anti-fraud provisions of the Securities Act while offering and selling said securities. Respondents have a right to request a hearing on the Statement of Charges.

A Consent Order was issued in this matter on February 24, 2010.


CANUSA Capital, LLC; Ross Paterson; and Victoria Mallahan - S-07-393-08-FO01 - Final Order

On February 12, 2008, the Securities Division entered Entry of Findings of Fact and Conclusions of Law and Final Order to Cease and Desist and Notice of Intent to Impose Fines and Charge Costs as to CANUSA Capital, LLC; Ross Paterson; and Victoria Mallahan (“Final Order”). The Securities Division had previously entered a Summary Order in the same matter on December 27, 2007. The Summary Order alleged that Respondents offered and sold securities in the form of investment contracts or promissory notes in Washington State told investors the money would be invested in real estate. The Summary Order further alleged that Respondents violated the registration and anti-fraud provisions of the Securities Act while offering the securities. CANUSA Capital, LLC and Ross Paterson have a right to request judicial review of the Final Order. This matter is still pending as to Respondent Victoria Mallahan.


M & W Charitable Foundation, M & W Charitable Trust, The Clarke 2001 Subscriber Trust, Russell F. Kenaga, Jr., and Victor Clarke Respondents; - S-04-187-08-FO01 - Final Order

On February 12, 2008, the Securities Division entered a Final Order against M & W Charitable Foundation, M & W Charitable Trust, The Clarke 2001 Subscriber Trust, Russell F. Kenaga, Jr., and Victor Clarke (collectively “Respondents”). The Securities Division previously entered a Statement of Charges in the same matter on December 28, 2007. Between October 2000 and November 2001, Russell Kenaga, through M & W Charitable Foundation and M & W Charitable Trust, solicited investors for a high-yield investment program run by Victor Clarke called The Clarke 2001 Subscriber Trust. Respondents made material misrepresentations regarding the purported investment opportunity. The Securities Division orders Respondents to cease and desist from violating the Securities Act of Washington and to pay fines of $50,000 and costs of $2,000. Respondents have a right to request judicial review of this matter.


Legacy Capital Group Ltd., Pacific Capital Development LLC, Guy Beatty - S-05-015-06-CO01 - Consent Order

On February 12, 2008, the Securities Division entered into a Consent Order with Legacy Capital Group Ltd., Pacific Capital Development LLC, and Guy Beatty (collectively “Respondents”). The Securities Division had entered a Statement of Charges against the Respondents on September 9, 2005. The Division alleged that Guy Beatty offered and sold $50,000 of unregistered investments relating to Legacy Capital Group Ltd. and Pacific Capital Development LLC to a Washington state resident. The Division further alleged that the Respondents violated the anti-fraud provisions of the Securities Act of Washington. Respondents neither admitted nor denied the allegations, but agreed to cease and desist from violating the registration and anti-fraud provisions of the Securities Act. Respondents agreed to pay a fine of $5,000. Respondents waived their rights to a hearing and judicial review of the matter.


Michael James Gilhooly, RJJ Pasadena Securities, Inc. - S-07-466-07-SC01 - Statement of Charges

On February 6, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines and Charge Costs against Michael James Gilhooly and RJJ Pasadena Securities, Inc. (collectively “Respondents”). The Statement of Charges alleges that Respondents effected over an extended period of time the purchase and sale of securities in a customer’s account after the customer moved to the state of Washington, without being properly registered. The Securities Division ordered Respondents to cease and desist from violating the registration provisions of the Securities Act of Washington. The Securities Division gave notice of its intent to collect fines and charge costs. Respondents have a right to request a hearing on the Statement of Charges.

A Consent Order was entered in this matter on October 15, 2008.


Global Aviation Fuel Systems and Bob (Neil) Necklewicz - S-08-002-08-SC01 - Statement of Charges

On February 1, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Impose Fines and Charge Costs against Global Aviation Fuel Systems and Bob (Neil) Necklewicz (collectively “Respondents”). Respondents offered an investment opportunity in their “Boeing Fuel Pump Inventory Investment Program” to at least one Washington resident. The Statement of Charges alleges that Respondents offered unregistered securities and acted as unregistered broker-dealers or securities salespersons. The Statement of Charges further alleges that offer or sale of securities by the Respondents violated the anti-fraud provisions of the Securities Act of Washington. The Securities Division intends to order Respondents to cease and desist from violating the Securities Act of Washington, and gives notice of its intent to collect fines and recover costs. Respondents have a right to request a hearing on the Statement of Charges.

A Consent Order was entered in this matter on August 25, 2008.


Donna Jean Parker - S-07-230-08-TO01 - Summary Order Suspending Securities Salesperson and Investment Adviser Representative Registration and Notice of Intent to Revoke Registration

On February 1, 2008, the Securities Division entered a Summary Order Suspending Securities Salesperson and Investment Adviser Representative Registration and Notice of Intent to Revoke Registration against Donna Jean Parker (“Respondent”). The Summary Order tentatively finds that Parker, while employed as a securities salesperson and investment adviser representative for Merrill Lynch, engaged in dishonest and unethical practices by forging signatures of employees at Merrill Lynch, forging the signature of a customer, converting $20,000 in customer funds, and executing a transaction on behalf of a customer without authorization to do so. The Respondent has a right to request a hearing on the Summary Order.


WLOPT, Inc., World Online Poker Players Association, Steve Olinger - S-07-067-08-SC01 – Statement of Charges

On January 28, 2008, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Impose Fines, and Recover Costs against WLOPT, Inc., World Online Poker Players Association, and Steve Olinger (collectively “Respondents”). Respondents offered promissory notes and stock in an online gaming venture known as the World Online Poker Players Association or World’s Largest Online Poker Tournament. Respondents raised at least $5,500 from selling investments to at least two Washington residents. The Statement of Charges alleges that Respondents offered unregistered securities, acted as unregistered broker-dealers or securities salespersons, and violated the anti-fraud provisions of the Securities Act of Washington. The Securities Division intends to order Respondents to cease and desist from violating the Securities Act of Washington, and gave notice of its intent to collect fines and recover costs. Respondents have a right to request a hearing on the Statement of Charges.


JoAnn Jagroop and Coffee Times – S-07-363-07-CO01 – Consent Order

On January 16, 2008, the Securities Division entered into a Consent Order with JoAnn Jagroop and Coffee Times (collectively “Respondents”). The Securities Division had previously entered a Statement of Charges against Respondents, Order S-07-363-07-SC01. The Securities Division alleged that Respondents advertised on the internet a franchise opportunity that involved printing and distributing a local or district edition of the Coffee Times newspaper. The Securities Division further alleged that Respondents offered to sell an unregistered franchise opportunity to Washington residents. Respondents neither admitted nor denied the Findings of Fact and Conclusions of Law in entering into the Consent Order. However, it was agreed and ordered that Respondents should cease and desist from any violations of RCW 19.100.020, the registration section of the Franchise Investment Protection Act of the State of Washington. Respondents each waived their right to a hearing and to judicial review of the matter.


Keith Robertson - S-05-008-07-CO01 - Consent Order

On January 10, 2008, the Securities Division entered into a Consent Order with Keith Robertson. The Securities Division had entered a Statement of Charges against Michael Paloma, Pine Canyon Enterprises, Inc., and Keith Robertson on June 29, 2007. A Final Order was entered as to Michael Paloma and Pine Canyon Enterprises, Inc. on August 29, 2007. The Division alleged that Respondent Robertson made omissions or misleading statements of material fact in connection with advice provided to Courtside Products, Inc. for compensation concerning taking the company public. The Division alleged that Respondent Robertson acted as an unregistered investment adviser and violated the anti-fraud provisions of the Securities Act. Respondent Robertson neither admitted nor denied the allegations, but agreed to cease and desist from violating the registration and anti-fraud provisions of the Securities Act. Respondent Robertson agreed to pay a fine of $5,000. In addition, Respondent Robertson agreed not to apply for a license as an investment adviser, broker-dealer, investment adviser representative, or securities salesperson in the State of Washington for a period of two years. Respondent Robertson waived his right to a hearing and judicial review of the matter.

DFI