2017 Division of Securities Enforcement Actions

Orders From Other Years

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Kevin Bonner - S-17-2117-17-CO01 - Consent Order

On July 5th, 2017, the Securities Division (“Division”) entered a Consent Order and Order Vacating Order No. S-17-2117-17-FO01 with Kevin Bonner (“Respondent”). The Securities Division previously entered a Final Order to Deny Future Registrations, to Cease and Desist, to Impose Fines, and to Recover Costs against Bonner (“Respondent”) on April 20, 2017. The Securities Division previously entered a Statement of Charges and Notice of Intent to Deny Future Registrations, to Cease and Desist, to Impose Fines, and to Recover Costs against Respondent on March 10, 2017.

In the Consent Order, the Securities Division agreed to vacate its Final Order against Respondent. In the Consent Order, Respondent admitted that he engaged in dishonest or unethical business practices when he borrowed money from a securities client and when he misrepresented to his firm that he had not borrowed money from a securities client. Respondent further admitted that he misrepresented his regulatory disciplinary history to the Division and failed to inform the Division of his regulatory disciplinary history within thirty days of the disciplinary action.

The Securities Division and Respondent agreed that any broker-dealer, securities salesperson, investment adviser, or investment adviser representative registration applications that Respondent may file in the future will be denied and that Respondent is to cease and desist from violating the Securities Act of Washington. Respondent also agreed to pay the Securities Division a fine of $5,000 and costs of $1,000.


Aegis Oil, LLC – S-16-1958-17-SC01 – Statement of Charges

On June 29, 2017 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 Aegis Oil, LLC, Aegis Disposal Systems, LLC, Patrick Reagan Beason, Ranald James Moran, III, Michael Louis Stokes, Sr., Thierry Jean Hennequin, Mark David Long, and Frank August (“Respondents”). The Statement of Charges alleges that Respondents offered and sold approximately $1.5 million of unregistered securities to twelve Washington investors in violation of the registration provisions of the Securities Act of Washington. Further, the Statement of Charges alleges that Respondents violated the anti-fraud provision of the Securities Act of Washington when they failed to disclose material information to the investors. The Securities Division intends to order Respondents to cease and desist from violating the Securities Act of Washington, to impose administrative fines, and to charge investigative costs. Respondents each have a right to request a hearing on the Statement of Charges.


Citium Wealth Management, LLC and J. Todd Larson – S-17-2222-17-TO01 – Summary Order

On June 22, 2017 the Securities Division entered Summary Order S-17-2222-17-TO01 against Citium Wealth Management, LLC (CRD no. 138593) and J. Todd Larson (CRD no. 5073565) (“Summary Order”). Respondent Citium Wealth Management is registered as an investment adviser and Respondent J. Todd Larson is registered as an investment adviser representative in Washington. The Summary Order alleged that Respondents willfully violated WAC 460-24A-060 by failing to file a 2016 year-end balance sheet and WAC 460-24A-205 by failing to file an annual updating amendment to its Form ADV. The Summary Order suspends Respondents’ registrations; gives notice of an intent to revoke registration, impose a fine; and charge costs. Respondents have a right to request judicial review of the matter.


Imyers Corporation and Seth Myers – S-17-2230-17-TO01 – Summary Order

On June 22, 2017 the Securities Division entered Summary Order S-17-2230-17-TO01 against Imyers Corporation (CRD no. 148149) and Seth Myers (CRD no. 4390286) (“Summary Order”). Respondent Imyers Corporation is registered as an investment adviser and Respondent Seth Myers is registered as an investment adviser representative in Washington. The Summary Order alleged that Respondents willfully violated WAC 460-24A-060 by failing to file a 2016 year-end balance sheet. The Summary Order suspends Respondents’ registrations; gives notice of an intent to revoke registration, impose a fine; and charge costs. Respondents have a right to request judicial review of the matter.


Franchise Development, L.P. and Freddy O’Pry, - S-17-2189-17-CO01 - Consent Order

On June 21, 2017, the Securities Division entered into a Consent Order with Respondents Franchise Development, L.P. and Freddy O’Pry (“Respondents”) of Richmond, Texas. The Securities Division had previously alleged in Statement of Charges S-17-2189-17-SC01 that the Respondents offered and/or sold franchises to Washington residents in violation of state franchise law. The Securities Division alleged that the Respondents offered and/or sold franchises to Washington residents while not registered as a franchise broker and published a misleading financial performance claim in violation of state franchise law. Without admitting or denying the Securities Division’s allegations, the Respondents agreed to cease and desist from violations of RCW 19.100.020 and RCW 19.100.170, the franchise broker registration and violations sections of the Franchise Investment Protection Act. Respondents also agreed to pay investigative costs of $2,000 and waived their right to a hearing and judicial review of the matter.


Artnova Social Purpose Corporation and Lou F. Marzeles – S-16-2086-17-CO01 - Consent Order

On June 1, 2017, the Securities Division entered into a Consent Order with Respondents, Artnova Social Purpose Corporation (“Artnova”) and Lou F. Marzeles (“Marzeles”). The Securities Division alleged that Artnova and Marzeles had violated the securities registration provision of the Securities Act of Washington. Without admitting or denying the Securities Division’s allegations, Artnova and Marzeles each agreed to cease and desist from any violations. Artnova agreed to pay investigative costs of $750. The Respondents each waived their right to a hearing and to judicial review of this matter.


Timothy Dion Wetzel; Robert Thomas Kelly; Wetzel Energy Technology Company Inc.; Wetzel Oil Inc.; Better Fuel North West, A WETCO Company, Inc; and Better Fuel Group NW, Inc. - S-14-1479-17-SC01 - Statement of Charges

On June 1, 2017 the Director of the Washington Department of Financial Institutions entered a Statement of Charges against Timothy Dion Wetzel (“Wetzel”); Robert Thomas Kelly (“Kelly”); Wetzel Energy Technology Company Inc. (“WETCO”); Wetzel Oil Inc.; Better Fuel North West, A WETCO Company, Inc. (“BFNW”); and Better Fuel Group NW, Inc. (collectively, “Respondents”). In the Statement of Charges, the Securities Division alleged that Respondents sold at least $829,500 in stock, promissory notes, and business opportunities to at least 26 investors, most of whom were Washington residents, using a purported renewable fuel that Wetzel claimed to have invented. Almost all, if not all, of these investors have lost their investments. The Securities Division alleged that the offer and sale of these investments were in violation of the registration and anti-fraud sections of the Securities Act of Washington and the Business Opportunity Fraud Act of Washington (collectively, the “Acts”). The Statement of Charges gave notice of the Securities Division’s intent to order Respondents to cease and desist from violating the Acts, and to impose fines and to charge costs against Wetzel, Kelly, WETCO, and BFNW. Respondents have the right to request a hearing on the Statement of Charges


Franchise Development, L.P. and Freddy O’Pry, - S-17-2189-17-SC01 - Statement Of Charges

On May 24, 2017, the Securities Division entered a Statement of Charges against Respondents Franchise Development, L.P. and Freddy O’Pry (“Respondents”) of Richmond, Texas. The Securities Division alleges that the Respondents offered and/or sold franchises to Washington residents while not registered as a franchise broker and published a misleading financial performance claim in violation of state franchise law. The Securities Division intends to order the Respondents to cease and desist from violations of RCW 19.100.140 and RCW 19.100.170, the franchise broker registration and violations sections of the Franchise Investment Protection Act. The Respondents each have an opportunity for a hearing in this matter.

A Consent Order was entered on June 21, 2017.


Fresh & Healthy Brands, LLC d.b.a. Go-Grill, Pure Health,Yo-Good, and Juice Zone; Chad Charles Parker; Juice Zone Franchising, Corp.; Cole Parker; and Go-Grill - S-17-2156-17-FO01 – Final Order

On May 25, 2017, the Securities Division entered a Final Order to Cease and Desist to Respondents Fresh & Healthy Brands, LLC d.b.a. Go-Grill, Pure Health,Yo-Good, and Juice Zone; Chad Charles Parker; Juice Zone Franchising, Corp.; Cole Parker; and Go-Grill. On March 28, 2017, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist against Respondents Fresh & Healthy Brands, LLC d.b.a. Go-Grill, Pure Health,Yo-Good, and Juice Zone; Chad Charles Parker; Juice Zone Franchising, Corp.; Cole Parker; and Go-Grill alleging that they violated the Franchise Investment Protection Act by offering unregistered franchises in Washington and misrepresented a material fact in connection with the offer of a franchise. The Final Order ordered the Respondents to cease and desist from future violations of RCW 19.100.020 and RCW 19.100.170, the registration and anti-fraud portions of the Franchise Investment Protection Act. The Respondents have the right to petition the superior court for judicial review of the Final Order.


InvestingCI, LLC - S-16-1925-17-FO01 – Final Order

On May 23, 2017, the Securities Division entered a Final Order against InvestingCI, LLC. In February 2017, the Securities Division entered a Statement of Charges against InvestingCI, LLC that alleged that InvestingCI, LLC sold approximately $238,000 in binary option trades to Washington residents between 2015 and 2016. The Statement of Charges further alleged that, in doing so, InvestingCI, LLC violated the Washington Securities Act’s (the “Act”) anti-fraud provision. The Final Order orders InvestingCI, LLC to cease and desist from violating the Act, imposes a fine, and orders InvestingCI, LLC to reimburse the Securities Division its investigative costs. InvestingCI, LLC may request judicial review of the Final Order.


Emaids Franchising, LLC - S-17-2141-17-CO01 - Consent Order

On May 8, 2017, the Securities Division entered into a Consent Order with Emaids Franchising, LLC (“E-Maids”). The Securities Division alleged that E-Maids violated the registration provision of the Franchise Investment Protection Act of Washington. Without admitting or denying the Securities Division’s allegations, E-Maids agreed to cease and desist from violations of RCW 19.100.020, the registration section of the Franchise Investment Protection Act of Washington. E-Maids further agreed to pay $100 in investigative costs and waived its right to a hearing and judicial review of the matter.


Fresh & Healthy Brands, LLC; d.b.a. Go-Grill, Pure Health, Yo-Good, and Juice Zone; Chad Charles Parker; Juice Zone Franchising, Corp.; and Cole Parker – S-17-2156-17-SC01 - Statement of Charges

On March 28 , 2017, the Securities Division entered a Statement of Charges against Respondents Fresh & Healthy Brands, LLC; d.b.a. Go-Grill, Pure Health, Yo-Good, and Juice Zone; Chad Charles Parker; Juice Zone Franchising, Corp.; and Cole Parker(“Respondents”). The Securities Division alleges that the Respondents offered and/or sold unregistered restaurant franchises to Washington residents in violation of state franchise law. The Division alleges that Respondents Chad Charles Parker, Cole Parker, and Juice Zone Franchising, Corp. made misrepresentations to a Washington resident in connection with the offer and sale of a franchise. The Securities Division intends to order the Respondents to cease and desist from violations of RCW 19.100.020 and RCW 19.100.170, the registration and anti-fraud sections of the Franchise Investment Protection Act. The Respondents each have an opportunity for a hearing in this matter.

A Final Order was entered regarding this matter on May 25 2017.


Dean Sproles - S-14-1415-17-FO05 - Final Order

On March 16, 2017, the Director of the Washington Department of Financial Institutions entered a Final Order against Dean Sproles (“Respondent”). The Securities Division had previously alleged in Statement of Charges S-14-1415-15-SC01 that Respondent helped raise over $19 million for Iverson Genetic Diagnostics, Inc., a genetic testing company, through the sale of unregistered common stock and convertible debt. The Securities Division further alleged that Respondent used unregistered salespersons to solicit the investments and that those salespersons typically had prior administrative orders for violating securities laws and/or criminal records involving theft or fraud. The Securities Division further alleged the Respondent made material misrepresentations or omissions in the offer and sale of the securities. The Final Order ordered Respondent to cease and desist from violations of RCW 21.20.140, RCW 21.20.040, and RCW 21.20.010. The Final Order further ordered Respondent to pay a fine of $60,000 and to pay investigative costs of $10,000. The Respondent has the right to petition the superior court for judicial review of the Final Order.


Sharon Herbst – S-16-1889-16-CO01 - Consent Order

On March 14, 2017, the Securities Division entered a Consent Order S-16-1889-16-CO01 with Sharon Herbst (“Consent Order”). Ms. Herbst (CRD # 847172) was a registered securities salesperson at Edward Jones from May 2002 to October 2015. The Consent Order states that Ms. Herbst was terminated from Edward Jones after it was discovered that she entered trades contrary to Edward Jones’ policy prohibiting discretionary orders, provided inaccurate information to the firm, and entered inaccurate information into the firm’s notes system. The Consent Order further states that Ms. Herbst provided inaccurate information to the Securities Division during its investigation of this matter. The Consent Order further states that these acts violated RCW 21.20.110(1) and WAC 460-22B-090. The Consent Order includes a $30,000 fine and costs of $5,000. The Securities Division and Ms. Herbst also agreed that Ms. Herbst will obtain a passing score on the series 66 examination within one year of the entry of the Consent Order; Ms. Herbst obtain and document specific client trade authorization information for each trade; and Ms. Herbst will be subject to a special plan of supervision for at least six months. Ms. Herbst waived her right to request judicial review of the matter.


Kevin Bonner – S-17-2117-17-SC01 - Statement of Charges

On March 10, 2017, the Securities Division (“Division”) entered a Statement of Charges and Notice of Intent to Enter Order to Deny Future Registrations, to Cease and Desist, to Impose a Fine, and to Charge Costs against Kevin Bonner (“Respondent”). The Statement of Charges alleges that Respondent engaged in dishonest or unethical business practices when he borrowed money from a securities client and when he misrepresented to his firm that he had not borrowed money from a securities client. The Statement of Charges further alleges that Respondent misrepresented his regulatory disciplinary history to the Division and failed to inform the Division of his regulatory disciplinary history within thirty days of the disciplinary action. The Statement of Charges gives notice to Respondent of the Division’s intent to enter a permanent order against Respondent to deny him future securities registration applications, to order him to cease and desist from violating the Securities Act of Washington, to impose upon him a fine, and to charge him costs. Respondent has a right to request a hearing on the Statement of Charges.

A Consent Order was entered regarding this matter on July 5, 2017.


Regal Energy, L.L.C.; Regal Blessing #1 Joint Venture; Regal Boonsville #2 Joint Venture; Regal Waggoner #1 Joint Venture; Regal Waggoner #2 Joint Venture; Regal Cosper #1 Joint Venture; Regal Pierce #1 Joint Venture - S-14-1508-17-CO01 - Consent Order

On March 7, 2017, the Securities Division entered into a Consent Order with Regal Energy, L.L.C.; Regal Blessing #1 Joint Venture; Regal Boonsville #2 Joint Venture; Regal Waggoner #1 Joint Venture; Regal Waggoner #2 Joint Venture; Regal Cosper #1 Joint Venture; and Regal Pierce #1 Joint Venture (collectively “Respondents”). The Securities Division previously entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Charge Costs against the Respondents. The Statement of Charges alleges that the Respondents raised approximately $661,978 from five Washington residents by offering and selling interests in six oil and gas drilling projects located in Texas. The Respondents neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act of Washington. The Respondents waived their right to a hearing and to judicial review of the matter.


Purple Forte, LLC d/b/a Maids by Trade - S-16-2064-17-CO01 - Consent Order

On March 7, 2017, the Securities Division entered into a Consent Order with Purple Forte, LLC, which does business as Maids by Trade. The Securities Division alleged that Purple Forte violated the registration provision of the Franchise Investment Protection Act of Washington. Without admitting or denying the Securities Division’s allegations, Purple Forte agreed to cease and desist from violations of the Franchise Investment Protection Act of Washington. Purple Forte further agreed to pay $625 in investigative costs and waived its right to a hearing and judicial review of the matter.


UCI Wealth Advisors, LLC; Travis Higgins - S-16-2049-16-CO01 - Consent Order

On March 3, 2017 the Securities Division entered into Consent Order S-16-2046-16-CO01 with UCI Wealth Advisors, LLC (CRD # 0154884) (UCI) and Travis Higgins (CRD # 04460566) wherein Respondent UCI’s investment adviser registration was revoked. Respondent Higgins withdrew his registration as an investment adviser representative in lieu of revocation and agreed to not apply for registration as an investment adviser representative or securities salesperson for 2 years. Higgins also agreed to not apply for registration as an investment adviser or broker-dealer for 5 years. Respondents paid costs of $750 and waived their right to request a hearing in the matter.


SoloMatrix, Inc.; Robert Solomon - S-15-1672-16-CO01 - Consent Order

On March 3, 2017, the Securities Division entered into a Consent Order with SoloMatrix, Inc. and Robert Solomon. 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 Charge Costs against SoloMatrix, Inc.; Robert Solomon, and James Lisowsky (collectively Respondents) on August 1, 2016. The Securities Division alleged that the Respondents raised over $600,000 for SoloMatrix, Inc., a cell phone accessory company, through the sale of various unregistered debt instruments and common stock. The Securities Division further alleged that SoloMatrix used an unregistered salesperson to solicit some of the investments and that the Respondents made material misrepresentations or omissions in the offer and sale of the securities. Without admitting or denying the Securities Divisions allegations, SoloMatrix, Inc. and Robert Solomon have agreed to cease and desist from violating the Securities Act of Washington. SoloMatrix, Inc. and Robert Solomon waived their right to a hearing and judicial review of this matter.


Northwest Crest, LLC; NW Crest Capital, LLC; Scot Reynolds - S-14-1528-16-CO01 - Consent Order

On March 3, 2017, the Securities Division entered into a Consent Order with Northwest Crest, LLC; Northwest Crest Capital, LLC; and Scot R. Reynolds (“Respondents”). The Securities Division had previously entered a Statement of Charges against Respondents on May 4, 2016. The Securities Division alleged that Respondents offered and sold approximately $650,000 of investments to fifteen investors in violation of the registration provisions of the Securities Act of Washington (“the Act”). The Division also alleged that Respondents violated the anti-fraud provision of the Act when they failed to disclose material information to the investors, including that Respondents would use new investor funds to repay prior investors. Without admitting or denying the Division’s allegations, Respondents agreed to cease and desist from violating the Securities Act of Washington, and to pay administrative fines and costs totaling $10,000. Respondents waived their right to a hearing and judicial review of this matter.


David Barr - S-14-1603-16-CO09 - Consent Order

On March 2, 2017, the Securities Division entered into a Consent Order with Respondent David Barr. The Securities Division previously entered a Statement of Charges against Barr and various other respondents on March 7, 2016.

In the Statement of Charges, the Securities Division alleged that Barr violated the securities registration, securities salesperson, and antifraud provisions of the Securities Act of Washington in the offer and sale of Life Partners, Inc. life settlements. Without admitting or denying the Securities Division’s allegations, Barr agreed to cease and desist from violating the Securities Act of Washington, to pay a fine of $2,500, and to pay investigative costs of $500. Barr waived his right to a hearing and judicial review of this matter.


Big Spring Gold, LLC - S-16-2078-17-CO01 - Consent Order

On March 2, 2017, the Securities Division entered into a Consent Order with Big Spring Gold, LLC (“Big Spring”). The Securities Division had previously entered a Statement of Charges against Big Spring. The Statement of Charges alleged that Big Spring had offered and sold unregistered securities and violated the anti-fraud provision of the Securities Act of Washington. Big Spring neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act of Washington. Big Spring waived its right to a hearing and to judicial review of the matter.


Louis A. Christensen – S-16-2078-17-CO02 - Consent Order

On March 2, 2017, the Securities Division entered into a Consent Order with Louis A. Christensen (“Christensen”). The Securities Division had previously entered a Statement of Charges against Christensen. The Statement of Charges alleged that Christensen had offered and sold unregistered securities, had been an unregistered securities salesperson, and had violated the anti-fraud provision of the Securities Act of Washington. Christensen neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act of Washington. Christensen waived his right to a hearing and to judicial review of the matter.


InvestingCI, LLC – S-16-1925-16-SC01 – Statement of Charges

On February 27, 2017 The Securities Division entered a Statement of Charges against InvestingCI, LLC. The Statement of Charges alleges that InvestingCI, LLC sold over $200,000 of binary options to Washington residents. The Statement of Charges alleges that, in doing so, InvestingCI, LLC violated the anti-fraud provision of the Washington State Securities Act. The Statement of Charges gives notice of the Division’s intent to order InvestingCI, LLC to cease and desist, to pay a fine, and to reimburse the Division’s investigative costs. InvestingCI, LLC may request an administrative hearing on this matter.

A Final Order was entered regarding this matter on May 23, 2017.


Gary Cassill – S-14-1603-16-CO07 – Consent Order

On February 27, 2017, the Securities Division entered into a Consent Order with Respondent Gary Cassill. The Securities Division previously entered a Statement of Charges against Cassill and various other respondents on March 7, 2016.

In the Statement of Charges, the Securities Division alleged that Cassill violated the securities registration, securities salesperson, and antifraud provisions of the Securities Act of Washington in the offer and sale of Life Partners, Inc. life settlements. Without admitting or denying the Securities Division’s allegations, Cassill agreed to cease and desist from violating the Securities Act of Washington, to pay a fine of $500, and to pay investigative costs of $500. Cassill waived his right to a hearing and judicial review of this matter.


Creative Money and Mindy Crary - S-16-1931-17-CO01 - Consent Order

On February 16, 2017, the Securities Division entered into a Consent Order with Respondents Creative Money LLC and Melinda Janelle Crary, a.k.a. Mindy Crary. In the Consent Order, the Securities Division alleged that Creative Money and Crary violated the Securities Act by acting as an investment adviser and/or an investment adviser representative while not registered to do so. Without admitting or denying the Securities Division’s allegations, Respondent agreed to cease and desist from violations of RCW 21.20.040, the registration provisions of the Securities Act. Respondents Creative Money and Crary agreed to pay a fine of $10,000 and investigative costs of $5,000. Respondents Creative Money and Crary waived their right to a hearing and judicial review of the matter.


R. Scott Peden – S-14-1603-16-CO05 – Consent Order

On February 8, 2017, the Securities Division entered into a Consent Order with Respondent R. Scott Peden (“Peden”). The Securities Division previously entered a Statement of Charges against Peden and various other respondents on March 7, 2016.

In the Statement of Charges, the Securities Division alleged that Peden violated the securities registration and antifraud provisions of the Securities Act of Washington in the offer and sale of Life Partners, Inc. life settlements. Without admitting or denying the Securities Division’s allegations, Peden agreed to cease and desist from violating the Securities Act of Washington, to pay a fine of $6,250, and to pay investigative costs of $3,750. Peden waived his right to a hearing and judicial review of this matter.


Gary Meier – S-15-1759-16-SC01 – Statement of Charges

On February 3, 2017 the Securities Division issued a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Revoke Registration, to Impose Fines, and to Charge Costs (Statement of Charges) against Gary Meier.

The Statement of Charges alleges that Gary Meier engaged in the following unethical business practices as an investment adviser representative in Washington: executing transactions in client accounts without obtaining prior authority to do so; making unsuitable investment recommendations through the purchase of speculative penny stock in client accounts; misrepresenting to clients the future value of their penny stock holdings; and engaging in unregistered investment advisor activity.

The Securities Division intends to order Gary Meier to cease and desist from violating the Securities Act of Washington, to revoke his registration as an investment adviser representative, and to assess him fines and costs. Gary Meier has a right to request a hearing on the Statement of Charges


Ecocruise Electric Transportation, Inc. and Steven D. Leighty - S-16-1945-17-CO01 - Consent Order

On February 2, 2017 the Securities Division entered into a Consent Order with Respondents, Ecocruise Electric Transportation, Inc. (“Ecocruise”) and Steven D. Leighty (“Leighty”). The Securities Division alleged that Ecocruise and Leighty had violated RCW 21.20.010 and RCW 21.20.140 and that Leighty had violated RCW 21.20.040. Without admitting or denying the Securities Division’s allegations, the Respondents both agreed to cease and desist from violating the Securities Act of Washington. Leighty agreed to pay a fine of $1,000 and costs of $2,000. The Respondents waived their right to a hearing and to judicial review of this matter.


EquipLinx Sales & Service, LLC; Kirk Frankish – S-17-2116-17-CO01 – Consent Order

On January 31, 2017, the Securities Division entered Consent Order S-17-2116-17-CO01 with EquipLinx Sales & Service, LLC and Kirk Frankish (collectively “the Respondents”). In the Consent Order, the Securities Division alleged that the Respondents had violated the Franchise Act of Washington by offering franchises to Washington residents without being registered to do so. Without admitting or denying the Securities Division’s allegations, the Respondents agreed to cease and desist from violating the Franchise Act and to pay $500 in investigative costs. The Respondents agreed to waive their right to a hearing and judicial review of the matter.


James Brian Hill and Sound Leasing Corporation – S-13-1192-16-CO01 – Consent Order

On January 31, 2017, the Securities Division entered a Consent Order with James Brian Hill and Sound Leasing Corporation (collectively, “Respondents”). In this Consent Order, the Securities Division alleged that Respondents raised approximately $2 million through the sale of promissory notes from twenty-five investors to fund an equipment leasing business. The Securities Division alleged that Respondents sold unregistered securities in violation of RCW 21.20.140. The Securities Division also alleged that Respondents violated RCW 21.20.010, the anti-fraud provision of the Securities Act of Washington. Further, the Securities Division alleged that James Brian Hill violated 21.20.040 by offering or selling securities while not registered as a securities salesperson or broker-dealer in the state of Washington. Without admitting or denying the Securities Division’s allegations, Respondents have agreed to cease and desist from violating the Securities Act of Washington. Respondents also agreed to pay a fine of $1,500. Respondents waived their rights to a hearing and judicial review of this matter.


Champs Chicken Franchising LLC - S-16-2008-17-CO01 - Consent Order

On January 25, 2017, the Securities Division entered into a Consent Order with Respondent Champs Chicken Franchising LLC of Holts Summit, Missouri. In the Consent Order, the Securities Division alleged that Champs Chicken violated the Franchise Investment Protection Act by offering and selling franchises to two state residents while not registered to do so and failed to provide prospective franchisees with a franchise disclosure document with current material information about the franchise offering. Without admitting or denying the Securities Division’s allegations, Respondent agreed to cease and desist from violations of RCW 19.100.020 and RCW 19.100.080, the registration and disclosure document portions of the Franchise Investment Protection Act. Respondent Champs Chicken Franchising LLC agreed to pay investigative costs of $3,000 and waived its right to a hearing and judicial review of the matter.


Troy Van Sickle – S-14-1550-16-CO02 – Consent Order

On January 25, 2017, the Securities Division entered a Consent Order with Troy Van Sickle ("Respondent"). The Securities Division previously entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Recover Costs against Respondent and others on January 7, 2016 in connection with the offer and sale of investments in investment contracts and evidence of indebtedness. The Securities Division alleged that Respondent violated RCW 21.20.010, the anti-fraud provision of the Securities Act of Washington. The Securities Division alleged that Respondent offered or sold unregistered securities in violation of RCW 21.20.140. The Securities Division alleged that Van Sickle violated RCW 21.20.040 by acting as an unregistered broker-dealer and/or securities salesperson. Without admitting or denying the Securities Division’s allegations, Respondent has agreed to cease and desist from violating the Securities Act of Washington. Respondent agreed to pay a fine of $20,000 and investigative costs of $10,000. Respondent waived his right to a hearing and judicial review of this matter.


MiniHYA Corporation; Raymond Willis - S-15-1624-17-FO02 - Order Denying Petition for Reconsideration and Affirmation of Final Order Dated November 16, 2016

On January 12, 2017, the Acting Director of the Washington State Department of Financial Institutions entered an Order Denying Petition for Reconsideration and Affirmation of Final Order Dated November 16, 2016 (“Order Denying Petition for Reconsideration”) against MiniHYA Corporation and Raymond Willis (collectively, “Respondents”). Respondents had filed a Petition for Reconsideration requesting that the Acting Director reconsider the Final Order entered against Respondents on November 16, 2016. The Order Denying Petition for Reconsideration affirmed the Final Order’s findings that Respondents violated the Securities Act of Washington (“Act”) in connection with the offer and sale of stock, and the Acting Director’s order that the Respondents to cease and desist from further violations of the Act. The Order Denying Petition for Reconsideration also affirmed the assessment of fines and costs against Respondents. Respondents have the right to petition the superior court for judicial review of the Order Denying Petition for Reconsideration.


Lodge at McKenzie Meadow Village, LLC; Pinnacle Alliance Group LLC; Mark Adolf; Anita Adolf – S-15-1669-16-CO01 – Consent Order

On January 11, 2017 the Securities Division entered Consent Order S-15-1669-16-CO01 with Lodge at McKenzie Meadow Village, LLC; Pinnacle Alliance Group LLC; Mark Adolf; and Anita Adolf (collectively “the Respondents”). In the Consent Order, the Securities Division alleged that the Respondents violated the antifraud section of the Securities Act of Washington by misrepresenting or failing to disclose material information in connection with the offer and sale of investments in a proposed senior housing facility, and violated the securities registration section of the Securities Act of Washington by offering and selling unregistered securities with no valid claim of exemption. The Securities Division further alleged that Respondents Pinnacle Alliance Group LLC, Mark Adolf, and Anita Adolf violated the Securities Act of Washington by offering and selling such investments while unregistered as a broker-dealer or securities salesperson in Washington. Without admitting or denying the Securities Division’s allegations, the Respondents agreed to cease and desist from violating the Securities Act and to pay $10,000 in fines and $5,000 in investigative costs. The Respondents agreed to waive their right to a hearing and judicial review of the matter.


FlikMedia, Inc.; Nicola “Nick” Bicanic; and Arben Kryeziu – S-15-1764-16-AG01 – Stipulation and Order of Dismissal

On January 5, 2017 after an adjudicative hearing, the Securities Division entered a Stipulation and Order of Dismissal with FlikMedia, Inc.; Flikdate, Inc.; Nicola “Nick” Bicanic; and Arben Kryeziu dismissing the charges in Statement of Charges S-15-1764-15-SC01.