Orders From Other Years
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Peter I. Hwang, Respondent - S-02-245-03-CO01 - Consent Order
On December 29, 2003, the Securities Division entered into a Consent Order with Peter I. Hwang (“Hwang”). The Division alleged that Hwang contacted an elderly Washington resident and told her that he was in the securities business for himself and that she should invest her money with him. Between January of 2000 and January 2001, the Division alleges the victim gave Hwang $98,250 for investment purposes. The Division alleges Hwang misled the victim by telling her that he had invested her funds in Microsoft and Cisco stock. The Division alleges Hwang, in fact, did not invest the funds as promised. Pursuant to terms of the Consent Order, the Division ordered Hwang to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act. Hwang is barred from being licensed as a securities professional in the state of Washington for five years. Hwang also agreed to reimburse the victim $10,000. Hwang waived his right to a hearing and further proceedings in the matter.
Northwest Best Direct, Inc., Vincent E. and Emily G. Bozzi, Respondents - S-03-115-03-SC01 - Statement of Charges
On December 19, 2003, the Washington Securities Division entered a Statement of Charges against Northwest Best Direct, Inc. and its owners, Vincent E. and Emily G. Bozzi of Spokane. The Division alleges that the Respondents violated an existing Order of the Division by offering and selling unregistered securities, by acting as unregistered broker-dealers and/or securities salespersons, and by violating the anti-fraud provision of the Securities Act. The Statement of Charges provides notice of the Division's intent to order Respondents to cease and desist from the violations, permanently withdraw exemptions, order restitution, and impose $60,000 in fines and costs. Each Respondent has an opportunity to request a hearing on the matter.
State Wide Escrow LLC, Diane Gates, and Michael Templeton, Respondents - S-03-195-03-CO01 - Consent Order
On December 12, 2003, the Securities Division entered into a Consent Order with State Wide Escrow LLC, Diane Gates, and Michael Templeton, Respondents, for alleged violations of the state Escrow Act in which Respondents conducted escrow transactions without a valid escrow agent license and failed to have a designated escrow officer supervise transactions. In the Consent Order, Respondents neither admitted nor denied the allegations. In addition to agreeing to cease and desist from violations of the Escrow Act, Respondents agreed to pay a $5,000 fine that is suspended based on future compliance with the order. Respondents reimbursed the Division $500, with an additional $1,000 suspended, for the cost of investigating this matter. Respondents waived their right to a hearing and further proceedings in the matter.
Todai Franchising LLC and Hyung Min Kim, Respondents - S-03-167-03-CO01 - Consent Order
On December 3, 2003, the Securities Division entered into a Consent Order with Todai Franchising LLC and Hyung Min Kim, Respondents. The Division alleged that in 2003, Respondents sold two unregistered restaurant franchises in the state. Respondents failed to provide the franchisees with a current financial statement. In the Consent Order, Respondents neither admitted nor denied the allegation but agreed to cease violating the Franchise Investment Protection Act in the future. Respondents agreed to reimburse the Division $2,500 for the cost of investigating this matter. Respondents waived the right to a hearing or further proceedings in this matter.
Dan D. Dyer, Jr., Respondent - S-03-009-03-SC01 - Statement Of Charges And Notice Of Intent To Enter An Order To Cease And Desist, Revoke Registration, Impose Fines, And Charge Costs
On December 8, 2003, the Securities Division entered a Statement Of Charges And Notice Of Intent To Enter An Order To Cease And Desist, Revoke Registration, Impose Fines, And Charge Costs against Dan D. “Duff” Dyer, Jr. (“Duff Dyer”). The Division alleges that Duff Dyer, while employed as a securities salesperson for CJM Planning, a New Jersey broker-dealer, offered purported pre-initial public offering shares of Indian Motorcycle Company to at least ten Washington residents, raising a total of approximately $164,375. Investors were actually purchasing membership interests in Washington Motorcycle Partners LLC (“WMP”). Duff Dyer’s father, Tacoma businessman Dan Dyer, controlled WMP. The Division alleges that Duff Dyer violated the registration provisions of the Washington Securities Act by offering and selling unregistered securities. The Division also alleges that Duff Dyer violated the anti-fraud provisions of the Securities Act of Washington by failing to disclose significant information about WMP, including the fact that WMP did not own any Indian Motorcycle Company stock and that the investment proceeds were used to make payments to Dan Dyer and his personal creditors, to Dan Dyer’s company’s creditors and to Duff Dyer himself. Further, the Division alleges that Duff Dyer engaged in dishonest and unethical sales practices in the securities business by effecting securities transactions not recorded on the regular books and records of CJM Planning without CJM Planning’s prior written authorization. The Division gave notice of its intent to order Duff Dyer to cease and desist from violations of the Securities Act, revoke Duff Dyer’s registration as a securities salesperson, fine Duff Dyer $30,000, and charge costs. The Respondent has the right to request a hearing in this matter.
Michael F. Dobbs, Respondent - S-03-150-03-FO10 - Final Order to Cease and Desist
On December 2, 2003, the Securities Division issued a Final Order to Cease and Desist against Michael F. Dobbs of New York. The Final Order adopted the Findings of Fact and Conclusions of Law as laid out in the September 22, 2003 Statement of Charges. The Order alleges that Dobbs, a registered securities salesperson, made unsolicited, high-pressure sales calls to at least one Washington resident while Dobbs was not registered in Washington State. Dobbs, who was working for a now-expelled broker-dealer, GIT Securities, represented to a Washington State resident that the securities he was touting were a “sure-fire” investment, and that Dobbs had a top-ranked team of securities analysts. Dobbs’s failure to disclose his lack of Washington registration, as well as his misrepresentations concerning the securities and the team of analysts, violated the anti-fraud provision of the Securities Act. Dobbs was not licensed in Washington at the time of the solicitations.
Though the Respondent was offered the right to request a hearing in this matter, he did not request a hearing. Dobbs has been ordered to pay a $5,000 fine, and has been barred for five years from registering as a securities salesperson, broker dealer, investment adviser representative, or investment adviser in the State of Washington.
Robert DeGroot, Equity Programs Corporation, Barton Switzer, Santa Clarita Ventures LP, BSD Real Estate Equities LLC, Wes Development Company, Brenton Rothschild Group Ltd., Booth Colorado Corporation, Respondents - S-03-072-03-SC01 - Statement of Charges
On December 2, 2003, the Securities Division entered a Statement of Charges against Robert DeGroot, Equity Programs Corporation, Barton Switzer, Santa Clarita Ventures LP, BSD Real Estate Equities LLC, Wes Development Company, Brenton Rothschild Group Ltd., and Booth Colorado Corporation. The Securities Division alleges that Equity Programs Corporation, a California broker-dealer, offered and sold a series of securities offerings through Robert DeGroot, the branch manager of its Everett, Washington office, by making misleading statements to investors about, among other things, the safety of the investments in questions, the existence of collateral backing the investments, and by omitting to advise the investments in later offerings that the investments sold in the earlier offerings were in default. The Securities Division also alleges that Robert DeGroot made unsuitable recommendations of securities to his customers and that he made unauthorized transactions in customer accounts. The Securities Division gave notice of its intention to suspend the securities salesperson registration of Robert DeGroot, to impose fines on him and on Barton Switzer, president of Equity Programs Corporation. The Securities Division also gave notice of its intent to enter cease and desist orders against each of the respondents for violation of the registration and anti-fraud provisions of the Securities Act of Washington. Each Respondent has an opportunity to request a hearing on the matter.
James B. Duncan & The Henson Group, Inc., Respondents - S-02-259-03-FO02 - Final Order to Cease and Desist
On December 2, 2003, the Securities Division issued a Final Order to Cease and Desist against James B. Duncan and The Henson Group, Inc. The Final Order adopted the Findings of Fact and Conclusions of Law as laid out in an August 5, 2003 Statement of Charges. The Order alleges that Duncan acted as an unregistered securities salesperson, that The Henson Group acted as an unregistered broker-dealer, and that both violated the anti-fraud provisions of the Securities Act of Washington. Duncan represented to a Washington State resident that Henson, a closely held California corporation, would invest the resident’s funds in a high-yield, low risk fund. Instead, Duncan, the sole officer of Henson, misappropriated the funds for his personal use and refused to return the investor’s funds upon request. Duncan made material misrepresentations in the offer of the securities and failed to disclose adverse information. Neither Henson nor Duncan was licensed in Washington.
Though the Respondents were offered the right to request a hearing in this matter, neither requested a hearing. Respondents have been ordered to pay restitution of $68,439. In addition, Respondents have been ordered to permanently cease and desist violating the registration and anti-fraud provisions of the Securities Act, and the availability of certain exemptions from registration have been permanently withdrawn.
Jamison J. Banks, Respondent - C-03-168-03-SC01- Statement of Charges and Notice of Intent to Prohibit Participation in the Escrow Industry and Impose Fines
On November 10, 2003, the Securities Division entered a Temporary Order to Cease and Desist, Statement of Charges, and Notice of Intent to Prohibit Participation in the Escrow Industry and to Impose Fines against Jamison J. Banks. The Division alleged that Banks, a former employee of Alta Escrow, LLC, in Bellevue, fraudulently signed and negotiated at least 46 unauthorized checks drawn on Alta’s trust account for an amount exceeding $14,800. The Division ordered Banks to cease and desist from violations of the Escrow Agent Registration Act’s prohibitions against fraud, unfair or deceptive practices, and obtaining property by fraud or misrepresentation. The Division also gave notice of its intention to seek fines against Banks and prohibit his participation in the escrow industry. Banks has the right to request a hearing in this matter.
Terri L. Gammons, Respondent - C-02-088-02-SC01- Statement of Charges and Temporary Order to Cease and Desist
On November 12, 2003, the Securities Division entered a Temporary Order to Cease and Desist, Statement of Charges, and Notice of Intent to Prohibit Participation in the Escrow Industry and to Impose Fines against Terri L. Gammons. The Division alleged that Gammons, formerly a designated escrow officer for Admiral Escrow Inc. in Bellevue, fraudulently prepared at least 15 unauthorized checks drawn on Admiral’s trust account for an amount exceeding $7,000. The Division ordered Gammons to cease and desist from violations of the Escrow Agent Registration Act’s prohibitions against fraud, unfair or deceptive practices, conversion, and disbursements of trust funds without written instructions. The Division also gave notice of its intention to seek fines against Gammons and prohibit her participation in the escrow industry. Gammons has the right to request a hearing in this matter.
CLS Financial Services, LLC and its affiliates and Gerald Clark Vanhook, Respondents - S-03-166-03-TO01 - Amended Order to Cease and Desist and suspending permit for sale of mortgage paper securities
On November 6, 2003, the Securities Division entered an amended order against CLS Financial Services, LLC (“CLS”) and its affiliates and against Gerald Clark Vanhook, its managing member. CLS is located in Lynnwood, Washington. The amended order alleges that CLS has violated registration and debenture company provisions of the Securities Act. The prior order, entered October 20, 2003, suspends the permit for the sale of mortgage paper securities by CLS. The order requires Respondents to cease and desist from violating the anti-fraud provisions of the Washington Securities Act and conditions certain exemptions from registration for securities offered or sold by CLS or its affiliates. The order alleges that, in connection with the Granite Northwest L.L.C. mortgage paper securities offering, Respondents misrepresented that investors would have a first deed of trust securing their investment. Respondents allegedly failed to disclose the status of the conditional use permit application for the land that was securing the investment and failed to disclose the environmental concerns that would need to be addressed before a granite quarry could be operated on the land. Respondents also allegedly misled investors about the value of the land securing their investment and failed to escrow investor funds. Respondents have requested a hearing in this matter.
DRDATA, Inc. and William Arthur Hitsman, Jr., Respondents - S-03-111-03-TO01 - Summary Order to Cease and Desist
On October 30, 2003, the Washington Securities Division entered a Summary Order to Cease and Desist against DRDATA, Inc. and William Arthur Hitsman, Jr. (“Hitsman”) and a Notice of Intent to Impose a $5,000 Fine against Hitsman, a Washington resident. The order alleges that DRDATA, Inc. was purportedly in the business of developing and marketing software for analyzing organizational costs. Allegedly, Hitsman and DRDATA, Inc. each violated the registration provisions of the Washington Securities Act by offering and selling unregistered securities. The respondents each allegedly violated the anti-fraud provisions of the Washington Securities Act by failing to disclose significant information about the investments. Hitsman allegedly guaranteed the repayment of investments that were not repaid when due. DRDATA and Hitsman may request a hearing on the order and charges.
City Escrow, Inc.; Frances D. Buck, Respondents - C-03-182-03-SC01 - Temporary Order to Cease and Desist
On October 29, 2003, the Securities Division entered a Temporary Order to Cease and Desist, Statement of Charges, and Notice of Intent to Revoke Licenses, Prohibit Participation in the Escrow Industry, and Impose Fines against City Escrow, Inc. and Frances D. Buck. The Division alleged that City Escrow, located in University Place, Washington and its owner and designated escrow officer, Frances Buck, misappropriated at least $1,190 from the trust account; improperly disbursed at least $8,100; failed to reconcile the trust account; and had several overdue checks and a closed trust account with outstanding funds. The Division ordered Buck and City Escrow to cease and desist from violations of the Escrow Agent Registration Act’s prohibitions against conversion, disbursements of trust funds exceeding the amount on deposit, disbursements of trust funds without written instructions, inadequate trust account records, and failure to perform required acts expeditiously. The Division also gave notice of its intention to seek fines against Buck and City Escrow and to prohibit Buck’s participation in the escrow industry. City Escrow and Buck have the right to request a hearing in this matter.
Dave A. Green (CGF Securities LLC) - S-03-006-03-CO01 - Consent Order
On October 29, 2003, the Securities Division entered into a Consent Order with Dave Augustus Green (“Green”) for alleged violations of the Washington Securities Act. The Division alleges that from October through December 2002, while employed as a securities salesperson at CGF Securities LLC in Florida, Green engaged in unethical sales practices, including executing unauthorized transactions in the accounts of at least two Washington customers and excessive trading. In the Consent Order, Green neither admitted nor denied the allegations. In addition to agreeing to cease and desist from violations of the Securities Act, Green agreed to surrender his securities salesperson registration to the Division. Green also agreed not to apply for a license as a securities salesperson or investment adviser representative for a period of three years. Green repaid $2,164 in commissions received from one Washington investor, paid a $3,000 fine and reimbursed the Division $836 for the cost of investigating this matter. Green waived his right to a hearing and further proceedings in the matter.
Noreen A. Cramer, Respondent - C-01-153-03-SC01 - Temporary Order to Cease and Desist, Statement of Charges, and Notice of Intent to Prohibit Participation in the Escrow Industry
On October 27, 2003, the Securities Division entered a Temporary Order to Cease and Desist, Statement of Charges, and Notice of Intent to Prohibit Participation in the Escrow Industry and to Impose Fines against Noreen A. Cramer. The Division alleged that Cramer, formerly a licensed escrow officer for Alta Escrow, LLC, in Bellevue, fraudulently prepared or assisted in preparing at least 193 unauthorized checks drawn on Alta’s trust and business accounts for an amount exceeding $83,000. The Division ordered Cramer to cease and desist from violations of the Escrow Agent Registration Act’s prohibitions against fraud, unfair or deceptive practices, conversion, and disbursements of trust funds without written instructions. The Division also gave notice of its intention to seek fines against Cramer and prohibit her participation in the escrow industry. Cramer has the right to request a hearing in this matter.
John D. Fagan, Respondent - S-02-284-03-SC01 - Statement of Charges and Notice of Intent to Enter an Order to Deny Registrations and Impose Fines and Costs
On October 24, 2003, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Deny Registrations and Impose Fines and Costs against John D. Fagan (“Fagan”). The Division alleges that Fagan, formerly a registered securities salesperson with D.A. Davidson & Co., engaged in dishonest and unethical practices in the securities business. The Division’s allegations include that Fagan recommended securities to two customers without reasonable grounds to believe that the transactions were suitable for them, and excessively traded their accounts to generate commissions. Both of the customers were elderly women living on fixed incomes. As a result of Fagan’s sales practices, the Division alleges that the customers lost $374,000. In the statement of charges, the Division gives notice of its intent to deny Fagan’s future registration as a securities salesperson for a period of ten years. The Division also intends to seek a fine of $20,000. Fagan has the right to request a hearing in this matter.
Ryan P. Stearns and Stearns Asset Management, LLC, Respondents - S-03-189-03-SC01- Statement Of Charges And Notice Of Intent To Enter An Order To Cease And Desist, Deny Registrations, and Impose Fines
On October 24, 2003, the Securities Division entered a Statement Of Charges And Notice Of Intent To Enter An Order To Cease And Desist, Deny Registrations, and Impose Fines against Ryan P. Stearns (“Stearns”) and Stearns Asset Management, LLC (“SAM”) for alleged violations of the Washington Securities Act. The Division alleges that Stearns, on behalf of SAM, filed a false or misleading application for investment adviser registration. Since July 24, 2000, Stearns has been the subject of an investigation by the New York Stock Exchange Division of Enforcement (“NYSE”) for causing shares of initial public offerings (“IPOs”) to be allocated to customer accounts and sharing in profits of those IPOs. Stearns failed to disclose the NYSE investigation in his investment adviser application filed with the Division. On September 5, 2003, the NYSE censured Stearns and barred him for a period of eight years from membership, allied membership, approved person status, and from employment or association in any capacity with any NYSE member organization. The Division gave notice of its intent to order Stearns to cease and desist from violations of the Securities Act, deny SAM’s investment adviser application, deny Stearns’s registration as a securities salesperson or investment adviser representative in the State of Washington for eight years, and fine Stearns and SAM $5,000. The Respondents have the right to request a hearing in this matter.
Success Concepts Enterprises, Inc., David B. Tarr, and World Business Consultants, Inc., Respondents - S-02-350-03-FO01 - Entry of Findings of Fact and Conclusions of Law and Final Order to Cease and Desist and Imposing Fine
On October 21, 2003, the Securities Division issued an Entry of Findings of Fact and Conclusions of Law and Final Order to Cease and Desist and Imposing Fine, which adopted the Findings of Fact and Conclusions of Law as laid out on August 26, 2003 in the Statement of Charges and Notice of Intent to Enter Summary Order to Cease and Desist and Intent to Impose Fines issued against Success Concepts Enterprises, Inc., David B. Tarr, World Business Consultants, Inc., and Christopher W. Jones. The Division found that Respondents, Success Concepts Enterprises, Inc., David B. Tarr, and World Business Consultants, Inc., offered investment contracts to at least two Washington residents. Respondents represented that a purchaser would receive a completely passive investment that would consist of at least five “point of sale terminals” that would be located and maintained by Success POS. Respondents are not registered to offer or sell securities in the state of Washington and are not registered as securities salespersons or broker-dealers in the state of Washington. Respondents failed to provide purchasers with complete material information. Respondents were offered the right to request a hearing in this matter, but failed to request a hearing in a timely manner. Christopher W. Jones did request a hearing.
Fancy Town and Won Hwoan Ko, Respondents - S-02-391-03-CO01 - Consent Order
On October 21, 2003, the Securities Division entered into a Consent Order with Won Hwoan Ko. The Division alleged that in 2002 Ko sold an unregistered franchise to at least one Washington resident. The franchise was to open a store that carried specialty items that appealed to the Korean community. Respondents failed to provide the Washington resident with a current financial statement or a Uniform Franchise Offering Circular. In the Consent Order Ko neither admitted nor denied the allegation but agreed to cease violating the Franchise Investment Protection Act in the future. Ko agreed to reimburse the Division $5000 for the cost of investigating this matter. Ko waived the right to a hearing or further proceedings in this matter
CLS Financial Services, LLC and its affiliates and Gerald Clark Vanhook (Re: Granite Northwest L.L.C. mortgage paper securities offering), Respondents - S-03-166-03-TO01 - Stop Order suspending the permit for the sale of mortgage paper securities
On October 20, 2003, the Securities Division entered a stop order suspending the permit for the sale of mortgage paper securities by CLS Financial Services, LLC (“CLS”) in Lynnwood, Washington. The order required CLS and its affiliates and Gerald Clark Vanhook, managing member of CLS, to cease and desist from violating the Washington Securities Act and conditioned certain exemptions from registration for securities to be offered or sold by CLS or its affiliates. The order alleges that, in connection with the Granite Northwest L.L.C. mortgage paper securities offering, Respondents misrepresented that investors would have a first deed of trust securing their investment. Respondents allegedly failed to disclose the status of the conditional use permit application for the land that was securing the investment and failed to disclose the environmental concerns that would need to be addressed before a granite quarry could be operated on the land. Respondents also allegedly misled investors about the value of the land securing their investment and failed to escrow investor funds. The Respondents have an opportunity to request a hearing on the matter.
John A. Erickson, Respondent - S-03-083-03-SC01E - Statement of Charges and Notice of Intent to Enter an Order to Suspend Registrations and Impose Fines
On October 13, 2003, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Suspend Registrations and Impose Fines against John A. Erickson (“Erickson”). The Division alleges that Erickson, a registered securities salesperson and investment adviser representative with Morgan Stanley DW, Inc. (“MSDW”), engaged in dishonest and unethical practices in the securities business by recommending securities to a customer without reasonable grounds to believe that the transactions were suitable for her. Erickson sold the customer, an elderly widow, a series of medium-term debt securities of MSDW that were redeemable at maturity for shares of common stock in companies such as Oracle Corporation, JDS Uniphase Corporation, and Yahoo! Inc. As a result of Erickson’s recommendations, the Division alleges that the customer lost over $34,000. The Division gave notice of its intent to suspend Erickson’s license. The Division also intends to seek a fine of $10,000. Erickson has the right to request a hearing in this matter.
Inter Island Escrow, Inc., Kenneth Loyd, Respondents - S-03-178-03-SC01 - Statement of charges and notice of intent to suspend or revoke escrow agent license and impose fines.
On October 6, 2003, Securities Director Bortner issued a temporary order to cease and desist to Inter Island Escrow, Inc. and Kenneth Loyd, its designated escrow officer, statement of charges and notice of intent to suspend or revoke escrow agent license and impose fines against Inter Island Escrow, Inc., based on Inter Island Escrow, Inc.’s failure to reconcile its trust account for more than a year, its disbursement of escrow funds in excess of deposits for escrow accounts, and its failure to have a licensed escrow officer supervising its escrow transactions. Inter Island Escrow, Inc. is located in Eastsound on Orcas Island. Inter Island Escrow, Inc. has been a licensed escrow agent since 1996. The respondents may request a hearing on this matter.
David A. Green (CGF Securities LLC), Respondent - S-03-006-003-TO02 - Amended Summary Order Suspending Securities Salesperson Registration And Notice Of Intent To Revoke Securities Salesperson Registration, Impose Fines, And Order Affirmative Relief.
On September 23, 2003, the Securities Division entered an Amended Summary Order Suspending Securities Salesperson Registration And Notice Of Intent To Revoke Securities Salesperson Registration, Impose Fines, And Order Affirmative Relief against Dave Augustus Green (“Green”) for alleged violations of the Washington Securities Act. The Division alleges that from October through December 2002, while employed as a securities salesperson at CGF Securities LLC in Florida, Green engaged in unethical sales practices, including executing unauthorized transactions in the accounts of at least two Washington customers and excessive trading. Green’s securities salesperson registration was suspended, pending a final determination in the matter. Green has requested a hearing in the matter pursuant to the Division’s Summary Order issued on March 19, 2003.
James Hansen (Mid-America Foundation) - S-01-128-03-CO07 - consent order and order vacating S-01-128-03TO01 as to James Hansen
On September 23, 2003, the Securities Division entered a consent order with James Hansen. This consent order settled, as to Hansen, the matters alleged by the Securities Division in Summary Order to Cease and Desist, Notice of Intent to Suspend or Revoke Securities Salesperson Registration, and Notice of Intent To Impose Fines S-01-128-03TO01, which related to sales of charitable gift annuities offered by Mid-America Foundation of Arizona. The Securities Division alleged that investors were told that the Mid-America Foundation charitable gift annuities were safe investment that would provide steady income and tax benefits. The investors’ funds were to be invested by qualified professionals in safe investments. The Securities Division alleges that investors’ funds were instead used to pay current expenses and to finance the lavish lifestyle of Robert Dillie. In October 2001, investors were told that Mid-America Foundation had disbanded and would be making no further annuity payments to its investors. In the Consent Order, James Hansen neither admitted nor denied the Securities Division’s allegations. James Hansen agreed to give up his securities salesperson license and not to reapply for a securities salesperson license for the period of one year from that date of entry of the consent order. In addition, he agreed to cease and desist from violations of the Securities Act of Washington. He agreed to pay a fine of $10,000 of which $5,000 is suspended contingent upon further compliance with the consent order.
Kevin P. Dilley, Respondent - S-03-181-03-FO01 - Entry of Findings of Fact and Conclusions of Law and Final Order Reinstating Securities Salesperson Registration.
On September 24, 2003, the Washington Securities Division entered an Order summarily revoking the securities salesperson license of Kevin P. Dilley. The suspension was based on information received from the Department of Social and Health Services, Division of Child Support, certifying that Mr. Dilley is in default on a child support order. Mr. Dilley’s employer, the J.P. Turner & Company brokerage in Spokane, was notified of the summary suspension.
On October 6th, Mr. Dilley’s license was automatically reinstated upon the Division’s receipt from DSHS of certification that he was now in compliance with the child support order. A copy of the final order is available.
Michael F. Dobbs, Respondent - S-03-150-03-SC01 - Statement of Charges
On September 22, 2003, the Washington Securities Division entered a Statement of Charges against Michael F. Dobbs (“Dobbs”). The Division alleges that Dobbs, a registered securities salesperson from New York, made unsolicited, high-pressure sales calls to at least one Washington resident while Dobbs was not registered in Washington State. Dobbs, who was working for a now-defunct broker-dealer, GIT Securities, represented to a Washington State resident that the securities he was touting were a “sure-fire” investment, and that Dobbs had a top-ranked team of securities analysts. Dobbs’s failure to disclose his lack of Washington registration, as well as his misrepresentations concerning the securities and the team of analysts, would violate the anti-fraud provision of the Securities Act. The Statement of Charges provides notice of the Division's intent to order Dobbs to cease and desist from the violations, to impose fines, and to deny registration as a salesperson in the State of Washington for five years. Dobbs will have the opportunity for hearing on this matter.
Etalon Card, Inc., Jonatan Schmidt, Charles Miller, Dusty Moss, and Beverly Ann Stebbins, Respondents - S-02-394-03-TO01E - Statement of Charges and Notice of Intent to Enter Summary Order to Cease and Desist
On September 8, 2003, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Summary Order to Cease and Desist against Etalon Card, Inc., Jonatan Schmidt, Charles Miller, Dusty Moss, and Beverly Ann Stebbins. The Division alleges that Respondents offered stock to at least three Washington residents. Respondents represented to the potential purchasers that Etalon sold pre-paid calling cards but also planned to expand into the banking industry by purchasing a North Dakota trust company. The potential purchasers were told that their investments would generate substantial returns because Etalon was planning to go public. Respondents are not registered to offer or sell stock in the state of Washington and are not registered as securities salespersons or broker-dealers in the state of Washington. Respondents failed to provide purchasers with complete material information. Respondents have the right to request a hearing in this matter.
Combined Agency, Inc.; Great Northern Financial Services, Inc.; Great Northern Financial Securities, Inc.; Ogren & Associates, Inc.; Dedicated Resources, Inc.; Robin Hood International, Ltd.; James Ady; Timothy Burke; Aaron Burns; Douglas Fry; Anthony Horpel; Larry Johnson; Roy Meyers; Carl Ogren; and Angelito Santos, Respondents - S-02-271-03-SC01C - Statement of Charges and Notice of Intent to Enter Order to Cease and Desist
On September 8, 2003, the Securities Division entered a Statement of Charges against Combined Agency, Inc.; Great Northern Financial Services, Inc.; Great Northern Financial Securities, Inc.; Ogren & Associates, Inc.; Dedicated Resources, Inc.; Robin Hood International, Ltd.; James Ady; Timothy Burke; Aaron Burns; Douglas Fry; Anthony Horpel; Larry Johnson; Roy Meyers; Carl Ogren; and Angelito Santos. The Division alleges that Respondent Combined Agency, Inc., a Spokane insurance agency owned by James Ady, acted as an unregistered broker-dealer for transaction in unregistered securities in the form of viatical settlement investments from respondents Dedicated Resources, Inc. and Robin Hood International, Ltd. as well as other viatical settlement providers. The Division alleges that respondents Great Northern Financial Services, Inc. and Ogren &Associates, Inc., insurance agencies located in Spokane Valley and Colfax respectively, also acted as unregistered broker-dealers in the sale of viatical settlement investments through Combined Agency, Inc. and that individual respondents James Ady, Timothy Burke, Aaron Burns; Douglas Fry, Anthony Horpel, Larry Johnson, Roy Meyers, Carl Ogren, and Angelito Santos sold the viatical settlement investments. The Division alleges that misrepresentations were made in the sale of the viatical settlement investments. The Division has notified respondents Combined Agency, Inc.; Great Northern Financial Services, Inc.; Great Northern Financial Securities, Inc.; Ogren & Associates, Inc.; Dedicated Resources, Inc.; Robin Hood International, Ltd.; James Ady; Timothy Burke; Aaron Burns; Douglas Fry; Anthony Horpel; Larry Johnson; Roy Meyers; Carl Ogren; and Angelito Santos of its intent to order those respondents to cease and desist from violations of the Securities Act of Washington (antifraud, registration of securities, and registration of salespersons and broker-dealers). The Division also gave notice of its intention to seek fines against the respondents and to take action against the salesperson or investment adviser registrations of Timothy Burke, Aaron Burns, Douglas Fry, and Anthony Horpel. The Division also gave notice of its intention to take action against the broker-dealer registration, a Spokane Valley broker-dealer, of which Great Northern Financial Services, Inc. is the parent, based on willful violations of the Securities Act of Washington by its officers, directors, or persons holding similar positions. All respondents are afforded an opportunity for a hearing on the Statement of Charges.
Q-2Synergy, Inc. Dudley Gee, Respondents - S-03-058-03-SC01 - Order to Cease and Desist
On September 5, 2003, the Securities Division issued a Final Order to Cease and Desist, which adopted the Findings of Fact and Conclusions of Law as laid out on July 29, 2003 in the Statement of Charges and Notice of Intent to Enter Order to Cease and Desist against Q-2Synergy, Inc. and Dudley Gee. The Division found that between April 2002 and December 2002, Q-2Synergy and Gee sold at least five business opportunities. Q-2Synergy and Gee represented to purchasers that they would receive a small business center that would market and sell a financial education package. Q-2Synergy and Gee are not registered to offer or sell business opportunities in the state of Washington. Q-2Synergy and Gee failed to provide purchasers with a Disclosure Documents containing material information, such as financial statements for Q-2Synergy and data on which projected earning were based. Q-2Synergy and Gee failed to provide purchasers with the materials and services that had been promised in the contract. Q-2Synergy and Gee failed to request a hearing in this matter.
Success Concepts Enterprises, Inc. dba SuccessPOS, David B. Tarr, World Business Consultants, Inc., Christopher W. Jones, Respondents - S-02-350-03-SC01 - Summary Order to Cease and Desist
On August 26, 2003, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Summary Order to Cease and Desist against Success Concepts Enterprises, Inc., David B. Tarr, World Business Consultants, Inc., and Christopher W. Jones. The Division alleges that Respondents offered investment contracts to at least two Washington residents. Respondents represented that a purchaser would receive a completely passive investment that would consist of at least five “point of sale terminals” that would be located and maintained by Success POS. Respondents are not registered to offer or sell securities in the state of Washington and are not registered as securities salespersons or broker-dealers in the state of Washington. Respondents failed to provide purchasers with complete material information. Respondents have the right to request a hearing in this matter.
Dr.’s Own, Inc., Joseph Paul/Politroni/Polifroni, and Mark Walsh - S-03-080-03-CO01 - Consent Order
On August 23, 2003 the Securities Division and Respondents, Dr.’s Own, Inc. and Joseph Paul entered into Consent Order number S-03-080-03-CO01. The Division alleged that Respondents violated the Franchise Investment Protection Act by offering and selling a franchise territory in Washington. The franchise allowed the purchaser to open a Good Feet store that would sell specialty orthotic devices. Respondents were not registered to sell franchises in Washington. Further, Respondents failed to provide investors with material information regarding the investment; including financial statements and a Uniform Franchise Offering Circular. Respondents neither affirm nor deny the Findings of Fact, but agree to cease and desist from violations of RCW 19.100.020 and RCW 19.100.170, the registration and anti-fraud portions of the Franchise Investment Protection Act.
All In One Financial Services, Inc., Respondents - S-03-120-03-CO01 - Consent Agreement
On August 14, 2003, the Washington Securities Division entered a consent agreement with All In One Financial Services, Inc., an investment adviser located in Kirkland, Washington, to vacate the suspension of its investment adviser registration. The firm had failed to file its year-end balance sheet with the Washington Securities Division within 90 days after its fiscal year end and had not updated its contact information with the Securities Division or IARD. The firm has now made the required filing and paid investigative costs of $500. The firm also waived its right to an administrative hearing.
The Henson Group, Inc.; James B. Duncan, Respondents - S-02-259-03-TO01 - Statement of Charges
On August 5, 2003, the Washington Securities Division entered a Statement of Charges against The Henson Group, Inc. (“Henson”) and James B. Duncan (“Duncan”). The Division alleges as follows: Henson and Duncan acted as an unregistered broker dealer, securities salesperson, and violated the anti-fraud provisions of the Securities Act of Washington. Duncan represented to a Washington State resident that Henson, a closely-held California corporation, would invest the resident’s funds in a high-yield, low risk fund. Instead, Duncan, the sole officer of Henson, purportedly misappropriated the funds for his personal use. Duncan refused to return the investor’s funds upon request. Duncan made material misrepresentations in the offer of the securities, and failed to disclose adverse information. Neither Henson nor Duncan is licensed in Washington. The Statement of Charges provides notice of the Division's intent to order Respondents to cease and desist their violations, to impose fines, order restitution, and permanently withdraw the availability of certain exemptions from registration. Both respondents will have the opportunity for hearing on this matter.
Hollowell Franchising, LLC and Carol Hollowell, Respondents - S-03-134-03-CO01 - Consent Order
On July 29,2003, the Washington Securities Division entered into a Consent Order with Hollowell Franchising, LLC and Carol Hollowell. Under the franchising agreement offered by Hollowell, a franchisee acquired the right to use “Precision Cuts” as the name under which the franchisee would do business. A franchisee also acquired the right to participate in a “franchise system,” including assistance with site evaluation, equipment selection, accounting methods, marketing and operation of a hair salon. The Consent Order provides that Hollowell Franchising, a Bend, Oregon company, shall cease and desist from offering or selling unregistered franchises in the State of Washington. The company paid investigative costs of $500 and waived the right to further proceedings in the matter.
Vendcorp Support Services & Kenneth D. Grammer d/b/a Gramco LLC, Respondents - S-02-317-03-FO01 - Final Order to Cease and Desist
On July 31, 2003 the Securities Division filed the Entry of Findings of Fact and Conclusions of Law and Final Order to Cease and Desist, number S-2-317-03-FO01. In April 2000 Grammer entered into a consent order in which he agreed to comply with the registration and anti-fraud provisions of the Business Opportunity Fraud Act. Despite this prior order, the Securities Division found that Grammer continued to offer and sell vending machine business opportunities without providing full material disclosure and without providing the required contract notifications. Respondents withdrew their application for an adjudicative hearing in this matter.
Young Financial Services and Gold & Silver Exchange, Respondents - S-02-354-03-TO01 - Summary Order to Cease and Desist
On July 11, 2003, the Securities Division entered a Summary Order to Cease and Desist against Steven B. Young, Young Financial Services and Gold & Silver Exchange. The Division alleges that between July 1998 and June 2001, Young received more than $225,000 from three Washington residents for investment purposes. Young, licensed as an insurance salesperson during this time period, represented to investors that if they invested with him he would trade in the gold, silver and palladium markets and provide them a guaranteed rate of return on their investments. In 1998 the Securities Division served Young with a summary order to cease and desist and a final order to cease and desist for violations of the Securities Act in circumstances similar to the facts alleged in this Order. Young has been ordered to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, pending a final determination of the matter.
All In One Financial Services, Inc., Respondent -- S-03-120-03-TO01 -- Summary Order Suspending Investment Adviser Registration
On July 9, 2003, the Securities Division suspended the investment adviser registration of All In One Financial Services, Inc., an investment adviser located in Kirkland, Washington, for failing to timely file its year-end financial statements. Each investment adviser must file a balance sheet within 90 days of the end of its fiscal year. Despite repeated efforts of the Division to contact the Respondent, the Respondent has not complied with the law. The Respondent has the right to request a hearing on this matter.
Peter Wallace Hill, Respondent - S-02-338-03-FO02 - Final Order to Cease and Desist
On July 2, 2003, the Securities Division entered a Final Order to Cease and Desist against Peter Wallace Hill and imposed a $10,000 fine. The Securities Division found that Hill offered and sold unregistered investments totaling at least $85,000 to at least six investors without disclosing material information about those investments. The investor funds were supposed to be pooled together and used for foreign currency trading that would generate high returns. Hill falsely represented that the principal amount of the investments was safe and that investments had little risk. Because Hill failed to make a timely hearing request, the Securities Division entered a final order and imposed a $10,000 fine against him.
Seattle Capital Group LLC (“SCG”), Jae H. Pak (“Pak”) and Luz Valdez (“Valdez”), Respondents - S-03-002-03-TO01 - Summary Order to Cease and Desist
On June 20, 2003 the Securities Division entered a Summary Order to Cease and Desist and Notice of Intent to Impose Fines and Order Affirmative Relief against Seattle Capital Group LLC (“SCG”), Jae H. Pak (“Pak”) and Luz Valdez (“Valdez”) for alleged violations of the Washington Securities Act. The Division tentatively finds that beginning on or about December 2000, Pak and Valdez, through SCG, offered and sold securities and offered investment advice and services for a fee to at least one Washington investor. The Division tentatively finds that in February 2001, Pak, through SCG, solicited $700,000 from a Washington investor by representing that he could double the investor’s money within a year. Pak and Valdez then began to conduct high volume day trading using the investor’s funds. The Division also tentatively finds that the offer and sale of securities by SCG, Pak and Valdez violated the registration and anti-fraud provision of the Securities Act of Washington and that SCG and Pak entered into a prohibited performance-based fee agreement. SCG, Pak and Valdez were ordered to cease and desist from violation of the registration and anti-fraud provisions of the Securities Act pending a final determination in the matter. Each party may request a hearing in this matter.
JLA Nordstjärna, Gerald Alan Sherman & David L. Johnson, Respondents -- S-02-231-03-TO01 -- Summary Order to Cease and Desist
On June 12, 2003 the Securities Division entered Summary Order to Cease and Desist number S-02-231-03-TO01. The Division alleges that Respondents violated the Securities Act by offering and selling investment contracts. Respondents failed to provide investors with material information regarding the investment; including financial statements and disclosures of the risk involved with the investments. The order requires Respondents to immediately cease and desist from violations of RCW 21.20.140, the anti-fraud portion of the Securities Act.
Carson Energy, Inc.; Earl Carter Bills, Jr. and Jerrold S. Rothouse, Respondents - S-03-074-03-TO01 - Summary Order to Cease and Desist
On May 23, 2003, the Washington Securities Division entered a summary order to cease and desist against Carson Energy, Earl Bills and Jerrold Rothouse. Carson Energy is purportedly an oil and gas company located in Austin, Texas. The company allegedly offered an investment in oil and gas production and a drilling venture to an elderly Washington resident. Respondents allegedly misrepresented the projected return on investment and failed to disclose material risks of the investment. The respondents each have an opportunity for hearing on this matter.
A Consent Order regarding this matter was entered on October 29, 2004.
Arthur K. Bryant, Forum Financial Advisors, LLC, Respondents - S-03-084-TO01 - Summary Order to Cease and Desist
On May 23, 2003, the Securities Division entered a Summary Order to Cease and Desist and Notice of Intent to Impose Fines against Arthur K. Bryant (“Bryant”) and Forum Financial Advisors, LLC (“Forum Financial Advisors”), both of Edmonds, Washington. The Division alleges that Bryant, the principal and managing member of Forum Financial Advisors, continued to hold himself out to the public as a financial advisor despite being barred from association with any NASD member in any capacity. The Division further alleges that Bryant is continuing to offer investment advisory and securities brokerage services via his website. The Division ordered Bryant to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act. The Division also intends to seek a fine of $5,000. Bryant has the opportunity to request a hearing regarding this matter.
Peter I. Hwang, Respondent - S-02-245-03-TO01 - Summary Order to Cease and Desist
On May 12, 2003, the Securities Division entered a Summary Order to Cease and Desist and Notice of Intent to Impose Fines against Peter I. Hwang (“Hwang”). The Division alleges that Hwang defrauded at least one Washington resident of $98,250. The Division alleges that Hwang contacted the victim and told her that he was in the securities business for himself and that she should invest her money with him. Between January of 2000 and January 2001, the Division alleges the victim gave Hwang $98,250 for investment purposes. The Division alleges Hwang misled the victim by telling her that he had invested her funds in Microsoft and Cisco stock. In fact, the Division alleges Hwang did not invest the funds as promised. Instead, the Division contends that Hwang deposited one of her checks into his own brokerage account, and cashed other checks. The Division ordered Hwang to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act. The Division also intends to seek a fine of $10,000. Respondents has the opportunity to request a hearing regarding this matter.
Gary Neil Cramer; Global SMG, Inc.; Peter Wallace Hill and David K. Buchanan, Respondents - S-02-338-02-TO01 - Summary Order to Cease and Desist
On April 29, 2003, a Summary Order to Cease and Desist and Notice of Intent to Impose Fines against Gary Neil Cramer; Global SMG, Inc.; Peter Wallace Hill and David K. Buchanan. Cramer, Hill and Buchanan was entered. Cramer was president of Global SMG, Inc., a Washington corporation that was allegedly engaged in foreign currency trading that would generate returns of 4% per week. The Order alleges that Cramer, Hill and Buchanan offered and sold unregistered investments totaling at least $85,000 to at least six investors without disclosing material information about those investments. Each of the respondents has the opportunity to request a hearing regarding this matter.
World Financial News Network Corporation; Joseph Louis de Beauchamp and Anthony E. Lucero, Jr., Respondents - S-02-340-03-TO01 - Summary Order to Cease and Desist
0n April 18, 2003, the Securities Division entered a Statement of Charges, Summary Order to Cease and Desist and Summary Order Revoking Exemptions against World Financial News Network Corporation (“WFNN”), Joseph Louis de Beauchamp (“de Beauchamp”) and Anthony E. Lucero, Jr. (“Lucero”). In addition, the Securities Division is seeking to impose fines of $50,000 each against de Beauchamp and Lucero. With its principal office located in Seattle, Washington, WFNN is purportedly in the business of developing and maintaining an Internet site that provides financial news and analysis of publicly traded companies located throughout the world. The Securities Division alleges that from February 1998 through August 2002, WFNN, de Beauchamp and Lucero, former securities salespersons, have offered and sold more than $4 million worth of unregistered WFNN stock to more than 180 investors. The Securities Division also alleges that WFNN, de Beauchamp and Lucero have each failed to disclose material information when offering and selling WFNN stock. Respondents each have the right to request a hearing on this matter.
Imergent Inc. d/b/a StoresOnline Inc., Respondents - S-03-010-03-TO01 - Summary Order to Cease and Desist
On April 18, 2003, the Securities Division issued Summary Order to Cease and Desist against Respondents, Imergent Inc., StoresOnline, Inc., John J. Poelman, Donald Danks, and Charles Andrews. Imergent and StoresOnline are in the business of selling Internet merchant packages, which allow investors to begin a business and make money by acquiring a presence on the Internet and by marketing their products through the Internet. The Division alleges that Respondents violated the Business Opportunity Fraud Act’s registration and anti-fraud provision. Allegations include failure to register and failure to provide the required disclosures. The Respondents have requested a hearing in this matter.
Gregory L. Hagen, Respondent - S-02-305-03-FO01 - Final Order to Cease and Desist
On April 9, 2003, the Securities Division entered a Final Order against Gregory L. Hagen (“Hagen”). The Division had entered a Statement of Charges in January 2003 alleging that Mr. Hagen, a Spokane, Washington resident employed by Public Securities, Inc., engaged in dishonest and unethical practices in the securities business by acting as a borrower on a promissory note entered into with a customer, and by making an unauthorized transaction in the account of that same customer. Mr. Hagen failed to request a hearing in the matter, and therefore the Final Order adopts the Findings of Fact and Conclusions of Law set forth in the Statement of Charges. The Division suspended Mr. Hagen’s securities salesperson for a period of ninety days from the date the order was entered. The Division also ordered Mr. Hagen to pay a fine of $5,000.
Mid-America Foundation; Robert Dillie; Renald Bidwell; James Hansen; Peter Woodbridge; Gary VanLandingham; Ryan Jensen; and Phil Jensen, Respondents - S-01-128-03TO01 - Summary Order to Cease and Desist
On March 31, 2003 the Securities Division entered a Summary Order to Cease and Desist; Notice of Intent to Suspend or Revoke Securities Salesperson Registration, and Notice of Intent to Impose Fines against Mid-America Foundation of Phoenix, Arizona; its executive director, Robert Dillie; and six of its sales agents who made sales in the state of Washington. Mid-America Foundation offered charitable gift annuities to the public. Most of its sales agents were insurance agents, who were paid commissions for making sales. The Securities Division alleges that investors were told that the Mid-America Foundation charitable gift annuities were safe investment that would provide steady income and tax benefits. The investors’ funds were to be invested by qualified professionals in safe investments. The Securities Division alleges that investors’ funds were instead used to pay current expenses and to finance the lavish lifestyle of Robert Dillie. In October 2001, investors were told that Mid-America Foundation had disbanded and would be making no further annuity payments to its investors. Most of the purchasers of Mid-America Foundation charitable gift annuities were elderly. The six sales agents named in the Summary Order collectively sold $2.3 million to 16 investors, most of whom are Washington residents. Four of the six are registered as securities salespersons in Washington. The Summary Order gives notice of the Securities Division’s intent to suspend or revoke those registrations and to impose fines on all six sales agents. Mid-America Foundation is in receivership. Robert Dillie has been indicted for federal crimes in Arizona. All respondents are afforded an opportunity for a hearing on the Summary Order.
1-800-GOT-JUNK? and Brian C. Scudamore, Respondents - S-03-044-03-CO01 - Consent Order
On March 27, 2003 the Securities Division entered into Consent Order number S-03-044-03-CO01 with Respondents, 1-800-GOT-JUNK? and Brian C. Scudamore. Respondents offer a franchise in which purchasers will be able to start a rubbish collection service using the 1-800-GOT-JUNK? name. Although Respondents neither admitted nor denied the findings of fact, they agreed to cease and desist from violating the provision of the Franchise Investment Protection Act that requires registration. Further, Respondents agreed to pay the Securities Division $500 to cover the costs of the investigation. Respondents waived a hearing and further proceedings in this matter.
Vendcorp Support Services & Kenneth D. Grammer d/b/a Gramco LLC, Respondents - S-02-317-03-TO01 - Summary Order to Cease and Desist
On March 27, 2003 the Securities Division entered Summary Order to Cease and Desist number S-02-317-03-TO01. The Order alleges that VSS, Grammer and Gramco violated the provisions of the Business Opportunity Fraud Act that prohibit fraud in the sale of business opportunities. The allegations include failure to provide purchasers with an adequate disclosure document and failure to provide purchasers with an adequate contract. The order requires that VSS, Grammer and Gramco immediately cease and desist from these violations and immediately suspends the business opportunity registration for VSS and Grammer. VSS and Grammer are provided with an opportunity for a hearing on the matter.
LDS Securities, LLC and Larry Dean Starchman; Respondents - S-02-230-03-FO01 – Final Order to cease and Desist and imposing fine.
On March 17, 2003, the Securities Division issued a final order to cease and desist to Larry Dean Starchman and LDS Securities, LLC. The Division alleged that from April 1997 through August 2000, LDS Securities, LLC sold investments in a day trading venture to at least 27 investors, most of whom were from Snohomish County. The Division alleged that the investments were offered or sold in violation of the registration provision of the Securities Act of Washington, in a manner that violated the anti-fraud provision of the Securities Act of Washington. The Securities Division also alleged that Larry Dean Starchman acted as an unregistered salesperson or broker-dealer in making the offers and sales. Larry Dean Starchman and LDS Securities, LLC were jointly and severally assessed a $20,000 fine and ordered to cease and desist from violations of the anti-fraud, securities registration, and broker-dealer and salesperson registration provisions of the Securities Act of Washington.
Combined Resource Systems, Inc., Barry Wise, Kevin Hall, its owners, principals, officers, agents and employees, Respondents – S-02-262-02-FO01 – Final Order to Cease and Desist
On March 4, 2003 the Securities Division entered Consent Order number S-02-262-02-CO01 which rescinded Final Order to Cease and Desist number S-02-262-02-FO01 which had been issued against Respondents, Combined Resources, Barry Wise and Kevin Hall of Henderson Nevada for the offer of an unregistered business opportunity involving the purchase and resale of earthworms. Respondents failed to provide material disclosure information regarding the investment to a Washington offeree. Respondents neither admitted nor denied these allegations, but agreed to cease and desist from violations of the registration and anti-fraud provisions of the Business Opportunity Fraud Act in the future.
Fancy Town, Won Hwoan Ko, their agents and employees, Respondents -- S-02-391-02-TO01 – Summary Order to Cease and Desist
On February 4, 2003 the Securities Division issued a Cease and Desist Order against Fancy Town and Won Hwoan Ko. The Division alleges that in 2002 the Respondents sold an unregistered franchise to at least one Washington resident. The franchise was to open a store that carried specialty items that appealed to the Korean community. Respondents failed to provide the Washington resident with a current financial statement or a Uniform Franchise Offering Circular.
Timothy Moyer; Private Lender Funding, Inc.; The Moyer Company, Respondents - S-02-272-03-CO01 - Consent Order
On February 4, 2003, the Securities Division entered into a Consent Order with Timothy Moyer; Private Lender Funding, Inc.; and The Moyer Company in connection with their offering and sale of investments in commercial loans to investors. The Securities Division alleges that Timothy Moyer; Private Lender Funding, Inc.; and The Moyer Company; sold more than $4.5 million of these investments to at least 24 investors, most of whom were from the Spokane area. The Division also alleges that the investments were offered or sold in violation of the registration provision of the Securities Act of Washington, in a manner that violates the anti-fraud provision of the Securities Act of Washington and that Moyer acted as an unregistered salesperson or broker-dealer and Private Lender Funding, Inc. and The Moyer Company acted as unregistered broker-dealers in making the offers and sales. Timothy Moyer; Private Lender Funding, Inc.; and The Moyer Company neither admitted nor denied the Securities Division’s allegations but agreed to cease and desist from violations of the anti-fraud, registration of offerings, and registration of salespersons and broker-dealers provisions of the Securities Act of Washington. Moyer agreed to pay investigative costs of $12,500 and to a fine of $20,000 suspended on condition of completion of payments of costs and of refraining from violation of the Securities Act of Washington.
Promises Consulting Corporation and Gerald J. Glasser, Respondents - S-01-144-03-FO01 – Final Order to Cease and Desist
On January 29, 2003, the Securities Division issued a Final Order to Cease and Desist against a Florida telemarketing firm that had been preying on Washington investors. Promises Consulting Corporation and its President, Gerald J. Glasser, operated as an independent sales office for Starcash, Inc., a check cashing company operating in Florida. Salespeople with Promises called Washington investors offering investment contracts in Starcash's accounts receivable. None of the individuals, or the securities, were registered as required. The Final Order permanently enjoins respondents from acting as unregistered broker-dealers or salespeople, and from offering unregistered securities. A copy of the Summary Order issued in this case is available at SDO-006-02 - Summary Order to Cease and Desist. A copy of the Summary Order issued by the Division against Starcash is available at SDO-007-02.
Starcash, Inc., Jeanne Leclercq, Frederick Jay Shapiro, Kip Marsique, and Steven S. Searson, Respondents - S-01-143-03-FO01 – Final Order to Cease and Desist and Revoking Exemptions
On January 28, 2003, the Securities Division issued a Final Order to Cease and Desist against a Florida telemarketing firm that had been preying on Washington investors. Starcash, Inc. and its Officers, President Jeanne Leclercq, CFO Frederick J. Shapiro, VP Kip Marsique, and COO Steven C. Searson purportedly operated a check cashing company in Florida. Salespeople for Starcash called Washington investors offering investment contracts in the firm's accounts receivable. None of the individuals, or the securities, were registered as required. The Final Order permanently enjoins respondents from acting as unregistered broker-dealers or salespeople, and from offering unregistered securities. A copy of the Summary Order issued by the Division against Starcash is available at SDO-007-02.
Universal Energy Solutions, Inc.; Mike Campa; Mark Thomas Duboise; their employees and agents, Respondents -- S-02-380-02-TO01 – Summary Order to Cease and Desist
On January 22, 2003, the Securities Division entered Summary Order to Cease and Desist against Universal Energy Solutions, Inc., Mike Campa, and Mark Thomas Dubois for violations of the Securities Act of Washington. The Division alleges that the investments were offered or sold in violation of the registration provision of the Securities Act of Washington, in a manner that violates the anti-fraud provision of the Securities Act of Washington. The Securities Division also alleges that Mike Campa acted as an unregistered salesperson or broker-dealer in making the offers and sales.
A Consent Order as to Mike Campa was entered on June 11, 2012.
T & B Enterprises, Tyree Blakely, Brenda Gardner; their employees and agents, Respondents -- S-02-241-02-TO01 – Summary Order to Cease and Desist
On January 15, 2003, the Securities Division entered Summary Order to Cease and Desist S-02-241-02-TO01 against T & B Enterprises, Tyree Blakely and Brenda Gardner for violations of the Securities Act and Commodities Act of Washington. The Division alleges that the investments were offered or sold in violation of the registration provision of the Securities Act of Washington and the Commodities Act of Washington, in a manner that violates the anti-fraud provision of the Securities Act of Washington and the Commodities Act of Washington.
Gregory L. Hagen, Respondent - S-02-305-02-SC01 – Statement of Charges
On January 2, 2003, the Securities Division entered a Statement of Charges against Gregory L. Hagen. The Division alleges that Mr. Hagen, a Spokane resident employed by Public Securities, Inc., engaged in dishonest and unethical practices in the securities business by acting as a borrower on a promissory note entered into with a customer, and by making an unauthorized transaction in the account of that same customer. The Division gave notice of its intention to suspend Mr. Hagen’s securities salesperson license for a period of ninety days and fine him $5,000.