2017 Division of Securities Enforcement Actions

Orders From Other Years

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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.