Orders From Other Years
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Troy Grogan; Worldfund Group, LLC; Infinitee Group, LLC; and Ti Investments, LTD. - S-05-135-05-TO01 - Summary Order
On December 30, 2005, the Securities Division entered a Summary Order to Cease and Desist and Notice of Intent to Impose Fines against Troy Grogan. The Summary Order alleges that Respondents raised at least $425,000 from thirteen investors by offering and selling various investments including investments in high interest check cashing businesses in foreign countries. Grogan promised investors rates of return from 20% to 50%. The Summary Order further alleges that Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington in connection with the offer and sale of such securities. At all relevant times Grogan resided in Washington State. The Securities Division ordered Respondents to cease and desist from violating the securities registration and anti-fraud provisions of the Securities Act of Washington. The Securities Division gave notice of its intent to collect fines and costs. Respondents have a right to request a hearing on the Statement of Charges.
International Energy and Resources, Inc., US American Resources, Inc., Jinson Jose and Mark Marshall - S-05-118-05-CO01 - Consent Order
On December 19, 2005, the Securities Division entered into a Consent Order with International Energy and Resources, Inc., US American Resources, Inc., Jinson Jose and Mark Marshall. The Consent Order settles charges filed on September 7, 2005 that on or about June of 2005, IER, Jose and Marshall offered unregistered interests in a gold mine. Pursuant to the terms of the Consent Order, IER, USAR, Jose and Marshall were ordered to cease and desist from violations of the anti-fraud provisions of the Securities Act and from selling unregistered securities in the state of Washington. IER, USAR, Jose and Marshall have each waived their right to a hearing and further proceedings in the matter.
Beyond Juice Corporation and Beyond Juice LLC - S-04-211-05-SC01 – Statement of Charges
On December 16, 2005, the Securities Division entered into a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist against Respondents, Beyond Juice Corporation and Beyond Juice LLC (the companies). The Division alleges that the companies, which advertise business opportunities on a website, offered or sold unregistered franchises in the state of Washington. The franchise involves the operation of blended health juice restaurants. The Respondents have the right to request a hearing in this matter.
View the Consent Order entered December 16, 2005 against Respondents, Beyond Juice Corporation and Beyond Juice, LLC.
Anthone Properties, Laurance D. Anthone - S-05-133-05-FO01 - Final Order
On December 7, 2005, the Securities Division entered a Final Order to Cease and Desist and imposed fines against Anthone Properties, LLC ("Anthone Properties") and Laurance D. Anthone ("Anthone"). The Division entered a Summary Order to Cease and Desist and Intent to Impose Fines against Anthone Properties and Anthone on August 30, 2005. The Division alleged that Anthone offered and sold unregistered real estate related joint venture investments with Anthone Properties to at least six Washington state residents. The Division further alleged that the Respondents violated the anti-fraud provisions of the Securities Act of Washington in connection with the offer of such investments. Respondents failed to request a hearing on the Summary Order. Respondents have the right to request judicial review of the Final Order.
Westwood Holdings, Inc., Igor Malyar (a/k/a George Falcone) – S-04-255-05-FO01 – Final Order
On December 6, 2005, the Securities Division entered a Final Order against Westwood Holdings, Inc., and Igor Malyar (a/k/a George Falcone). On October 26, 2005, the Division personally served on Respondents the Summary Order to Cease and Desist and Notice of Intent to Impose Fines and Recover Costs. The Division alleged that Igor Malyar, calling himself George Falcone, offered and sold securities in a fictitious company. The Securities Division further alleged that Malyar made material misrepresentations regarding the investment opportunity, including the fact that no such investment existed. Respondents failed to request a hearing on the Summary Order. Respondents have the right to request judicial review of the Final Order.
Capstone Investments, Anthony Capozza - S-04-233-05-TO01 - Summary Order
On December 1, 2005, the Securities Division entered a Summary Order to Cease and Desist and Notice of Intent to Suspend Broker-Dealer Registration, Impose Fines and Charge Costs against Capstone Investments ("Capstone") and Anthony Capozza ("Capozza"). The Division alleged that Capstone violated the Securities Act by liquidating the securities portfolios of Washington State customers without reasonable grounds to believe that the liquidations were suitable. The Division further alleged that Capstone violated the Securities Act by utilizing insurance agents as unregistered securities salespeople. The proceeds of the portfolios liquidated by Capstone were used to fund the sale of insurance products. The Division further alleged that Capstone and Capozza violated the anti-fraud provisions of the Securities Act by not disclosing to customers the firm’s relationship with the insurance agents. Capstone and Capozza were ordered to cease and desist from violations of the registration, anti-fraud, and other provisions of the Securities Act, pending a final determination of the matter. The Division also stated its intent to suspend the broker-dealer registration of Capstone and order Capstone and Capozza to pay a fine and costs. Capstone and Capozza have a right to request a hearing in this matter.
InterBay Funding Group Inc., Donald J. Vanhook, Jeanne Vanhook Respondents - S-05-026-05-SC01 (Amended) - Statement of Charges
On November 29, 2005, the Securities Division entered an Amended Statement of Charges, Summary Order Revoking Exemptions, and Notice of Intent to Enter Stop Order and Order to Cease and Desist, to File Quarterly Financial Reports and to Maintain Minimum Net Worth against InterBay Funding Group Inc., Donald J. Vanhook and Jeanne Vanhook. The Division alleged that InterBay, located in Lynnwood, is a debenture company that had been selling notes without maintaining the minimum required net worth. The Division also alleged that InterBay and the Vanhooks made materially misleading statements or omissions relating to the sale of notes, violated rules regarding debt servicing standards, failed to deliver annual financial statements to its debenture holders and engaged in unsafe or unsound practices in conducting the business of a debenture company. The Division summarily revoked InterBay’s ability to offer or sell securities under exemptions from registration and gave the Respondents notice of its intention to enter an order to cease and desist from violating the Securities Act, to file quarterly financial reports, and to maintain the required net worth. The Respondents each have the right to request a hearing on the charges.
Joseph Winfield "Hap" Langlie, U.S. Monolith Ministry #2, The VenPar Group, and Windy Langlie Tennis Center No.1 – S-05-212-05-TO01 – Summary Order
On November 28, 2005, the Securities Division entered a Summary Order against Hap Langlie and three of his businesses. The Division alleges that Hap Langlie continues to offer unregistered securities and that in the past he has promised investors interest rates as high as 100% through the means of promissory notes and investment contracts. In connection with his securities offerings, Langlie has failed to disclose to investors that he has been the subject of two prior enforcement actions by the Securities Division, one in 1989 and the second in 1998. The Summary Order enjoins future violations of the Securities Act. The Securities Division is continuing to investigate this matter. Langlie and his companies each have the opportunity to request a hearing in this matter.
Pacific Coast Investment Company - S-05-073-05-CO01 - Consent Order
On November 16, 2005, the Securities Division entered a Consent Order with Pacific Coast Investment Company ("PCIC"). PCIC has its principal place of business in Seattle, Washington and is licensed to sell mortgage paper securities. The Securities Division found that during 2004, in connection with a $400,000 transaction, PCIC held four investors' funds in its escrow trust account for more than 60 days and failed to deposit eleven investors' funds within 48 hours of receipt. PCIC self-reported its delays and changed its procedures to prevent any further violations of the disbursement and receipt rules for offering and selling mortgage paper securities. PCIC also paid investigative costs of $5,000. The Company waived its right to a hearing and judicial review of this matter.
R.W. Taylor & Associates., Richard Taylor - S-05-006-05-SC01 - Statement of Charges
On October 31st, 2005, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist and Notice of Intent to Impose Fines and Recover Costs against R.W. Taylor & Associates (“Taylor & Associates”) and Richard Taylor (“Taylor”). The Division alleged that Taylor offered and sold unregistered investments in Taylor & Associates to at least three Washington state residents. The investors were told the money would be invested in real estate. Investors expected to receive high interest rates and monthly payments on their investments. The Division further alleged that the Respondents violated the anti-fraud provisions of the Securities Act of Washington in connection with the offer of such securities. The Respondents have a right to request a hearing in this matter.
A Consent Order was entered in this matter on April 11, 2011.
Runnymede Capital Partners, Runnymede Capital Management, Richard Dalberth - S-05-005-05-FO01 - Final Order
On October 31, 2005, the Securities Division entered a Final order against Respondents, Draxial Capital Partners, L.P. (formerly known as Runnymede Capital Partners, L.P.), Draxial Capital Management, LLC (formerly known as Runnymede Capital Management, L.L.C.), and Richard S. Dalberth. On August 30, 2005, the Securities Division served a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist and to Impose Fines against Respondents. The Statement of Charges alleges that Respondents each violated the registration and anti-fraud provisions of the Securities Act by offering and selling unregistered limited partnership interests and failing to disclose material facts in connection with the offer and sale of securities. Respondents raised $95, 157.39 from one Washington investor; however, in total, Respondents raised over $1.6 million in this scheme. Respondents failed to request a hearing on the Statement of Charges. Respondents have the right to request judicial review of the Final Order.
Kenneth Elgin, Trinidad Exploration, Inc., West Coast Resources, Inc. - S-05-129-05-SC01 - Statement of Charges
On October 25, 2005, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist and to Impose fines against Kenneth Elgin; Trinidad Exploration, Inc.; and West Coast Resources, Inc. (collectively “Respondents”). The Statement of Charges alleges that Respondents raised $805,000 from seven Washington State residents by offering and selling unregistered interests in an oil and gas drilling project. The investors resided in King and Snohomish counties. The Statement of Charges further alleges that Respondents violated the broker-dealer registration and anti-fraud provisions of the Securities Act of Washington in connection with the offer and sale of such securities. The Securities Division ordered Respondents to cease and desist from violating the securities registration and anti-fraud provisions of the Securities Act of Washington. The Securities Division gave notice of its intent to collect fines and costs. Respondents have a right to request a hearing on the Statement of Charges.
Steven Richardson - S-05-092-05-SC01 - Statement of Charges
On October 24, 2005, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Deny Securities Salesperson Registration and Impose Fines and Costs against Steven Richardson (“Richardson”). The Statement of Charges alleges that Richardson violated securities rules when he told an investor that he would invest the investor’s funds in a mutual fund in the investor’s name and instead deposited the investor’s money into Richardson’s own brokerage account. The Statement of Charges further alleges that Richardson used the money in his brokerage account to purchase shares of start-up and other high risk companies. The Statement of Charges further alleges that Richardson used the proceeds from selling those stocks to purchase personal items. Richardson has a right to request a hearing on the Statement of Charges. This matter was resolved by the entry of a Consent Order on May 19, 2006.
Norair Seferian - S-05-104-05-FO01 - Final Order
On October 12, 2005, the Securities Division entered a Final Order against Norair Seferian (“Seferian”). On August 22, 2005, the Securities Division entered a Statement of Charges and Notice of Intent to Revoke Securities Salesperson Registration and Impose Fines against Norair Seferian (“Seferian”). The Statement of Charges was served on Seferian on August 29, 2005. Seferain failed to request a hearing on the Statement of Charges. Seferian has the right to request judicial review of the Final Order.
Jon Gentile, Jag Entertainment and Cyber Production Consultants - S-03-055-05-CO01 - Consent Order
On October 12, 2005, the Securities Division entered into a Consent Order with Jon Gentile, Jag Entertainment and Cyber Production Consultants. The Division alleged that Gentile, Jag Entertainment and Cyber Production Consultants violated the registration and anti-fraud provisions of the Securities Act of Washington when they sold investments in the production of a game show called “The Live Auction Show!.” In the Consent Order, Gentile neither admitted nor denied the allegations. Gentile agreed to reimburse the Division $3,000 for investigative costs. The Respondents waived their right to a hearing and to further proceedings in the matter.
J. Gregory Tranum - S-04-078-05-CO01- Consent Order
On October 12, 2005, the Securities Division entered into a Consent Order with J. Gregory Tranum, the former President of Yakima Brewing and Malting Co., Inc. Yakima Brewing manufactures beer under the "Grant's" label and operates Grant's Brewery Pub in Yakima, Washington. The Division alleged that Tranum violated the registration and anti-fraud provisions of the Securities Act of Washington by offering unregistered preferred stock to hundreds of residents of Washington and other states between 2003 and 2004, and failing to disclose material facts to investors. In the Consent Order, Tranum neither admitted nor denied the allegations, but agreed to cease violating the Securities Act in the future. Tranum agreed to reimburse the Division $2,500 for the cost of investigating this matter and pay a $5,000 fine. Tranum waived his right to a hearing or further proceedings in this matter.
Metropolitan Investment Securities, Inc., Annette O. Miller - S-04-041-05-CO12 - Consent Order
On October 6, 2005, the Securities Division entered a Consent Order against Annette O. Miller (“Miller”). The Division had entered a Statement of Charges on October 27, 2004, against fifteen former Metropolitan Investment Securities, Inc. (“MIS”) securities salespersons, including Miller. The Division alleged that MIS securities salespersons made unsuitable recommendations of securities offered by Metropolitan Mortgage and Securities Co., Inc. (“Metropolitan”) and Summit Securities, Inc. (“Summit”) to Pacific Northwest investors who were seeking low risk investments to sustain them in their retirement years, thereby improperly concentrating the limited assets of these investors in Metropolitan and Summit. Pursuant to the terms of the Consent Order, Miller was censured by the Division and ordered to pay a $1,250 fine. Miller waived her right to a hearing and further proceedings in the matter.
Metropolitan Investment Securities, Inc., Lamar J. Miller - S-04-041-05-CO11 - Consent Order
On October 6, 2005, the Securities Division entered a Consent Order against Lamar J. Miller (“Miller”). The Division had entered a Statement of Charges on October 27, 2004 against fifteen former Metropolitan Investment Securities, Inc. (“MIS”) securities salespersons, including Miller. The Division alleged that MIS securities salespersons made unsuitable recommendations of securities offered by Metropolitan Mortgage and Securities Co., Inc.(“Metropolitan”) and Summit Securities, Inc. (“Summit”) to Pacific Northwest investors who were seeking low risk investments to sustain them in their retirement years, thereby improperly concentrating the limited assets of these investors in Metropolitan and Summit. Pursuant to the terms of the Consent Order, Miller was censured by the Division and ordered to pay a $1,250 fine. Miller waived his right to a hearing and further proceedings in the matter.
Resource Development International, Sharyn Kae Meenderinck – S-00-050-05-CO06 – Consent Order
On September 29, 2005, the Securities Division entered a Consent Order with former Resource Development International LLC (“RDI”) securities salesperson Sharyn Kae Meenderinck (“Meenderinck”) settling charges that Meenderinck allegedly, as an unregistered securities salesperson, offered or sold unregistered securities in the form of RDI prime bank notes. The Division also alleged that Meenderinck omitted material facts in the offer and sale of the RDI prime bank notes. Meenderinck neither admits nor denies the facts alleged. Pursuant to the terms of the Consent Order, Meenderinck was ordered to cease and desist from violating the registration and anti-fraud provisions of the Securities Act. Meenderinck was also permanently barred from being licensed as a securities professional in the state of Washington. Meenderinck waived her right to a hearing and further proceedings in this matter.
Resource Development International, William Joseph Slaney – S-00-050-05-CO01 – Consent Order
On September 29, 2005, the Securities Division entered a Consent Order with former Resource Development International LLC (“RDI”) securities salesperson William Joseph Slaney (“Slaney”) settling charges that Slaney allegedly, as an unregistered securities salesperson, offered or sold unregistered securities in the form of RDI prime bank notes. The Division also alleged that Slaney omitted material facts in the offer and sale of the RDI prime bank notes. Slaney neither admits nor denies the facts alleged. Pursuant to the terms of the Consent Order, Slaney was ordered to cease and desist from violating the registration and anti-fraud provisions of the Securities Act. Slaney was also permanently barred from being licensed as a securities professional in the state of Washington. Slaney waived his right to a hearing and further proceedings in this matter.
Resource Development International, James Ronald Smith - S-00-050-05-CO07 - Consent Order
On September 22, 2005, the Securities Division entered a Consent Order with former Resource Development International LLC (“RDI”) securities salesperson James Ronald Smith (“Smith”) settling charges that Smith allegedly, as an unregistered securities salesperson, offered or sold unregistered securities in the form of RDI prime bank notes. The Division also alleged that Smith omitted material facts in the offer and sale of the RDI prime bank notes. Smith neither admits nor denies the facts alleged. Pursuant to the terms of the Consent Order, Smith was ordered to cease and desist from violating the registration and anti-fraud provisions of the Securities Act. Smith was also permanently barred from being licensed as a securities professional in the State of Washington. Smith waived his right to a hearing and further proceedings in this matter.
Reserve Foundation Trust, Gretchen Sidorov - S-04-247-05-CO01 - Consent Order
On September 17, 2005 the Securities Division entered into a Consent Order with Gretchen Sidorov (“Sidorov”). The Consent Order settles charges, filed on April 27, 2005, against Reserve Foundation Trust LLC (“RFT”), Gretchen Sidorov (“Sidorov”), Mary Ann Gough (”Gough”) and Brent Gill (”Gill”). RFT claimed to trade in off-shore bank debentures and offered and sold investment opportunities in its trading program to members of the public. The Division alleged that Sidorov became involved in RFT through Gough and Gill. Sidorov neither admits nor denies the allegations. Pursuant to the terms of the Consent Order, Sidorov was ordered to cease and desist from violations of the anti-fraud provisions of the Securities Act and from selling unregistered securities in the state of Washington. Sidorov waived her right to a hearing and further proceedings in the matter.
Legacy Capital Group, Pacific Capital Development, Guy Beatty - S-05-015-05-SC01 - Statement of Charges
On September 9, 2005, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist and to Impose Fines and Recover Costs against Legacy Capital Group ("Legacy"), Pacific Capital Development (“Pacific Capital”) and Guy Beatty (“Beatty”). The Division alleged that Beatty offered and sold unregistered investments relating to Legacy and Pacific Capital to a Washington state resident. The Division further alleged that the Respondents violated the anti-fraud provisions of the Securities Act of Washington in connection with the offer of such securities. The Respondents have a right to request a hearing in this matter.
A Consent Order was entered in this matter on February 12, 2008.
Sucasas Motor Company and Henrique Sucasas - S-05-117-05-SC01 - Statement of Charges
On September 9, 2005, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist and to Impose Fines against Sucasas Motor Company (“SMC”), a company formed to manufacture a luxury sports car, and its CEO and President, Henrique Sucasas (“Sucasas”). The Division alleged that on or about June of 2005, SMC and Sucasas offered unregistered shares of SMC. The Division further alleged that the Respondents violated the anti-fraud provisions of the Securities Act of Washington in connection with the offer of such securities. The Respondents have a right to request a hearing in this matter.
International Energy and Resources, Inc., US American Resources, Inc., Jinson Jose and Mark Marshall - S-05-118-05-SC01 - Statement of Charges
On September 7, 2005, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist and Intent to Impose Fines against International Energy and Resources, Inc. (“IER”), US American Resources, Inc. (“USAR”), Jinson Jose (“Jose”) and Mark Marshall (“Marshall”). IER, a wholly owned subsidiary of USAR, is purportedly a mining exploration and development company. The Division alleged that on or about June of 2005, IER, Jose and Marshall offered unregistered interests in a gold mine. The Division further alleged that the Respondents violated the anti-fraud provisions of the Securities Act of Washington in connection with the offer of such securities. The Respondents have a right to request a hearing in this matter.
Ensentech, Inc., Gary G. Scott, Hydro-Clean Fuel Systems, Inc., and Gary L. Davis - S-05-089-05-SC01 - Statement of Charges
On September 6, 2005, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist and Notice of Intent to Impose Fines and Charge Costs against Respondents, Ensentech, Inc., Gary G. Scott, Hydro-Clean Fuel Systems, Inc., and Gary L. Davis. The Department alleges that Respondents offered and sold unregistered securities in Ensentech, Inc. and Hydro-Clean Fuel Systems, Inc to at least 14 Washington residents. Respondent, Gary G. Scott, and/or his agents and employees, were not registered as a broker/dealer and/or securities salesperson when he allegedly offered and sold unregistered securities to at least 5 of the 14 Washington residents. The Division seeks to order Respondents to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act. The Division seeks to impose a fine of $20,000 and charge costs of at least $2,000. Each Respondent has the right to request a hearing on this matter.
This matter was resolved by the entry of a Consent Order on October 11, 2006.
Reserve Foundation Trust, Brent Gill - S-04-247-05-FO02 – Final Order
On September 6, 2005, the Securities Division entered a Final Order as to Brent Gill (“Gill”). The Division entered a Statement of Charges against Reserve Foundation Trust LLC (“RFT”), Gretchen Sidorov (“Sidorov”), Mary Ann Gough (”Gough”) and Gill on April 27, 2005. RFT claimed to trade in off-shore bank debentures and offered and sold investment opportunities in its trading program to members of the public. The Division alleged that Sidorov became involved in RFT through Gough and Gill. The Division ordered Gill to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act. The Respondent has the right to request judicial review of the Final Order. The charges against RFT and Sidorov are still pending.
Anthone Properties, LLC, Laurance D. Anthone - S-05-133-05-TO01 - Summary Order
On August 30, 2005, the Securities Division entered a Summary Order to Cease and Desist and Intent to Impose Fines against Anthone Properties, LLC (“Anthone Properties”) and Laurance D. Anthone (“Anthone”). The Division alleged that Anthone offered and sold unregistered real estate related joint venture investments with Anthone Properties to at least six Washington state residents. The Division further alleged that the Respondents violated the anti-fraud provisions of the Securities Act of Washington in connection with the offer of such investments. The Division ordered the Respondents to cease and desist from violating securities registration and anti-fraud provisions of the Securities Act of Washington. The Respondents have a right to request a hearing in this matter.
Sahara Pizza Holding Company, Inc. - S-05-132-05-CO01 - Consent Order
On August 22, 2005, the Securities Division entered into a Consent Order with Sahara Pizza Holding Company, Inc. (the company). The Division alleged that the company sold franchises in the state of Washington prior to filing a registration application with the Securities Division. The franchise involves the operation of pizza restaurants. Among other things, the company agreed in the consent order to comply with the registration and disclosure document provisions of the Franchise Investment Protection Act in the future and additionally agreed to reimburse the Securities Division $300 for its costs of investigation relating to the case. The Respondent also waived its right to a hearing or other further proceedings in this matter.
Norair Seferian - S-05-104-05-TO01- Statement of Charges
On August 22, 2005, the Securities Division entered a Statement of Charges and Notice of Intent to Revoke Securities Salesperson Registration and Impose Fines against Norair Seferian (“Seferian”). The Statement of Charges alleges that Seferian made two false or misleading filings with respect to a material fact to the State of Washington. The Statement of Charges further alleges that Seferian failed to comply with a provision of the Conduct Rules of the National Association of Securities Dealers and that Seferian is subject to a Final Order to cease and desist in the State of Missouri. Seferain has a right to request a hearing on the Statement of Charges.
Resource Development International, Mark Krabbenhoft – S-00-050-05-CO05 – Consent Order
On August 17, 2005, the Securities Division entered a Consent Order with former Resource Development International LLC (“RDI”) securities salesperson Thomas Mark Krabbenhoft (“Krabbenhoft”) settling charges that Krabbenhoft allegedly, as an unregistered securities salesperson, offered or sold unregistered securities in the form of RDI prime bank notes. The Division also alleged that Krabbenhoft omitted material facts in the offer and sale of the RDI prime bank notes. Krabbenhoft neither admits nor denies the facts alleged. Pursuant to the terms of the Consent Order, Krabbenhoft was ordered to cease and desist from violating the registration and anti-fraud provisions of the Securities Act. Krabbenhoft was also barred from being licensed as a securities professional in the state of Washington for five years from the date the consent order was entered. Krabbenhoft waived his right to a hearing and further proceedings in this matter.
Western Capital Partners III, Western Capital Corp., Pension Concepts, Kent Cunningham, Fredrick “Rocky” Weatherbee - S-05-134-05-TO01 - Summary Order
On August 17, 2005, the Securities Division entered a Summary Order to Cease and Desist against Western Capital Partners III, Western Capital Corporation, Pension Concepts, Kent R. Cunningham and Fredrick “Rocky Weatherbee”. The Division alleges that from August 1999 and continuing through April 2000 the parties named above raised $280,000 from 4 people to invest in the purchase and collection of account receivables. The Securities Division further alleges that they made material misrepresentations regarding the investment opportunity, including the safety of the investment and rates of return to the investors. Western Capital Partners III, Western Capital Corporation, Pension Concepts, Kent R. Cunningham and Fredrick “Rocky Weatherbee” were 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. Respondents have the right to requesta hearing.
Resource Development International LLC, Steve Wayne Bastrom – S-00-050-05-CO03 – Consent Order
On August 15, 2005, the Securities Division entered a Consent Order with former Resource Development International LLC (“RDI”) securities salesperson Steve Wayne Bastrom (“Bastrom”) settling charges that Bastrom allegedly, as an unregistered securities salesperson, offered or sold unregistered securities in the form of RDI prime bank notes. The Division also alleged that Bastrom omitted material facts in the offer and sale of the RDI prime bank notes. Bastrom neither admits nor denies the facts alleged. Pursuant to the terms of the Consent Order, Bastrom was ordered to cease and desist from violating the registration and anti-fraud provisions of the Securities Act. Bastrom was also permanently barred from being licensed as a securities professional in the state of Washington. Bastrom waived his right to a hearing and further proceedings in this matter.
Resource Development International LLC, Edward Morris Harris – S-00-050-05-CO04 – Consent Order
On August 15, 2005, the Securities Division entered a Consent Order with former Resource Development International LLC (“RDI”) securities salesperson Edward Morris Harris (“Harris”) settling charges that Harris allegedly, as an unregistered securities salesperson, offered or sold unregistered securities in the form of RDI prime bank notes. The Division also alleged that Harris omitted material facts in the offer and sale of the RDI prime bank notes. Harris neither admits nor denies the facts alleged. Pursuant to the terms of the Consent Order, Harris was ordered to cease and desist from violating the registration and anti-fraud provisions of the Securities Act. Harris was also permanently barred from being licensed as a securities professional in the state of Washington. Harris waived his right to a hearing and further proceedings in this matter.
Alloy Wheel Repair Specialists, Inc. and Wheel Repair Solutions International, Inc. – S-04-154-05-CO01- Consent Order
On August 10, 2005, the Securities Division entered into a Consent Order with Alloy Wheel Repair Specialists, Inc. and Wheel Repair Solutions International, Inc. The Division alleged that the company sold franchises in the state of Washington prior to filing a registration application with the Securities Division. The franchise involves a business that provides cosmetic restoration and structural repair of automobile wheels. The Respondents agreed in the order to comply with the registration and disclosure document provisions of the Franchise Investment Protection Act in the future and agreed to reimburse the Securities Division $500 for its costs of investigation relating to the case. The Respondent also waived its right to a hearing or other further proceedings in this matter.
Arizona Idaho Mining, Douglas Baker - S-04-240-05-CO01 - Consent Order
On August 8, 2005 the Securities Division entered into a Consent Order with Arizona Mining, LLC (“AZID”) and Douglas Baker (“Baker”). The Consent Order settles charges, filed on March 21, 2005, that in or about March of 2001, AZID and Baker raised approximately $200,000 from six Washington residents by offering and selling unregistered investment units in two gold mines. Baker and AZID neither admit nor deny the allegations. Pursuant to the terms of the Consent Order, AZID and Baker were ordered to cease and desist from violations of the anti-fraud provisions of the Securities Act and from selling unregistered securities in the state of Washington. AZID and Baker waived their right to a hearing and further proceedings in the matter.
Waddell & Reed, Inc. and W & R Insurance Agency, Inc. - S-04-053-05-CO01 - Consent Order
On August 8, 2005, the Securities Division and the Office of the Insurance Commissioner (“OIC”) entered a Consent Order against Waddell & Reed, Inc. (“Waddell & Reed”) and W & R Insurance Agency, Inc. (“W&R”). The Division and OIC alleged that between January 2001 and August 2002, Waddell & Reed senior managers encouraged their sales force to exchange several thousand variable annuity contracts issued by United Investors Life Insurance Company (“UILIC”) to similar annuities provided by Nationwide Insurance Company (“Nationwide”). Waddell & Reed initiated the exchanges after agreeing to a fee sharing arrangement with Nationwide. The Division alleges that Waddell & Reed violated the Securities Act by making unsuitable recommendations to exchange annuities and failing to adequately supervise the exchanges. Under the terms of the settlement with NASD and state regulatory authorities, Waddell & Reed will repay more than 5,000 customers nationwide up to $11 million in surrender charges. Washington’s share of this total is approximately $700,000. An estimated 400 Washington customers may benefit from the settlement. While neither admitting nor denying the allegations, the firm also agreed to pay a fine of $5 million to NASD and a fine of $2 million to state regulators. Waddell & Reed and W & R waived their right to a hearing and further proceedings in the matter.
Premium Income Corp; Inforex, Ltd.; Tri-Forex International, Ltd.; Gerald Leo Rogers; and Alexander Igor Shevchenko – S-05-035-05-TO01 – Summary Order
On July 29, 2005, the Securities Division entered a Summary Order and Notice of Intent to Impose Costs and Fines against Premium Income Corp, Inforex, Ltd., Tri-Forex International, Ltd., Gerald Leo Rogers, and Alexander Igor Shevchenko. The Division alleges that from January 2004 and continuing through February 2005, Respondents raised over $8,500,000 through their agents and/or employees involving the purported writing of foreign currency calls. The Securities Division further alleges that Respondents made material misrepresentations regarding the investment opportunity. These misrepresentations include Respondents’ representations that the investments were safe and had little or no risk. Respondents have the right to request a hearing on this matter.
This matter was resolved by the entry of a Consent Order on October 18, 2006.
Millennium Marketing and Management, LLC and James M. Pielemeier - S-04-147-05-CO01 – Consent Order
On July 26, 2005, the Securities Division entered into a Consent Order with Millennium Marketing and Management, LLC and its founder, James M. Pielemeier, a resident of Arlington, Washington. The Division alleged that from at least April to October 2003, Pielemeier offered and sold unregistered investments in approximately a dozen joint ventures related to IPIC International, Inc. (“IPIC”) to at least twenty investors who reside primarily in Washington and Oregon. Millennium’s investors ultimately lost approximately $450,000 in IPIC-related investments. Pielemeier later raised over $100,000 through the offer and sale of Millennium joint venture agreements involving real estate ventures in Mexico and Belize. The Division further alleged that the Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington.
In the Consent Order, the Respondents neither admitted nor denied the allegations, but agreed to cease violating the Securities Act in the future, reimburse the Division $5,000 for the cost of investigating this matter and pay a $10,000 fine. The Respondents waived their right to a hearing or further proceedings in this matter.
Able Mortgage & Investments, Inc., Barry A. Hammer – S-04-220-05-TO01 – Summary Order
On July 13, 2005, the Securities Division entered a Summary Order to Cease and Desist against Able Mortgage & Investments, Inc., a Washington corporation, and Barry A. Hammer of Everett, Washington. The Division alleges that from 1987 and continuing through August 2004 Hammer raised over $8,500,000 from 65 people to improve or purchase real properties or to make high-interest, short-term loans to borrowers. The Securities Division further alleges that Hammer made material misrepresentations regarding the investment opportunity. These misrepresentations include Hammer’s representations that the investments were safe and had little or no risk. Additionally, Hammer told some investors that their notes were secured by deeds of trust when the deeds of trust were invalid. Hammer was 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. Hammer has the right to request a hearing on this matter.
A Consent Order in this matter was entered on December 8, 2008.
Financial & Estate Strategies, Inc.; Randall T. Becker - S-02-316-05-CO01 - Consent Order
On July 12, 2005, the Securities Division entered a Consent Order with Financial & Estate Strategies, Inc. (FES), of Bellevue, Washington, and its sole officer and director, Randall T. Becker, of Sammamish, Washington. The Consent Order settles charges, filed in October 2004, that FES and Mr. Becker violated the anti-fraud provision of the Securities Act by selling unregistered securities issued by Health Maintenance Centers and Cascade Point, LLC. FES and Mr. Becker neither admit nor deny the Division’s allegations. In settling the matter, FES and Mr. Becker agreed to the revocation of their Investment Adviser and Investment Adviser Representative registrations and that neither may apply to the Division for any registration for six years from July 12, 2005, the date the Order was entered. In addition, FES and Mr. Becker agreed to a $20,000 fine, with $10,0000 suspended based on future compliance with the Order, and to pay $35,000 in attorney fees and costs. Use the link to view a copy of the Statement of Charges S-02-316-03-SC01 issued in this matter including the Findings of Fact and Conclusions of Law on which the Consent Order S-02-316-05-CO01 was based. FES and Randall waived further review of this matter.
Jack McDonough - S-05-090-05-TO01 - Summary Order
On July 7, 2005, the Securities Division entered a Summary Order to Cease and Desist against Jack McDonough (“McDonough”), a Colorado CPA, for offering an unregistered business opportunity in Washington State. The business opportunity would purportedly allow the purchaser to create a business representing clients in IRS proceedings. The Division alleged that McDonough violated the registration and anti-fraud provision of the Business Opportunity Fraud Act of Washington in connection with the offer of such business opportunities to Washington state residents. The Division ordered the Respondent to cease and desist from violating the registration and anti-fraud provision of the Business Opportunity Fraud Act of Washington. The Respondent has a right to request a hearing in this matter.
A Final Order was entered in this matter on July 25, 2007.
Westwood Holdings, Inc., and Igor Malyar (a/k/a George Falcone) – S-04-255-05-TO01 – Summary Order
On June 29, 2005, the Securities Division entered a Summary Order to Cease and Desist against Westwood Holdings, Inc., and Igor Malyar (a/k/a George Falcone). The Division alleges that Igor Malyar, calling himself George Falcone, offered and sold securities in a fictitious company. The Securities Division further alleges that Malyar represented that he purchased stocks for investors when he, in fact, did not. Malyar was 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. Malyar and Westwood Holdings have the right to request a hearing on this matter.
All-In-One Financial Services, Inc., Garry A. Estrada - S-04-206-05-T002 – Summary Order
On June 23, 2005, the Securities Division entered a Summary Order suspending the investment adviser and investment adviser representative registrations of All-In-One Financial Services, Inc. (“All-In-One”) and Garry A. Estrada (“Estrada’). Their registrations will remain suspended pending a final determination in the matter. The action also ordered All-In-One and Estrada to immediately cease and desist violating certain provisions of the Securities Act. The Division alleges that from November 2003 through January 2004, All-In-One and Estrada sold more than $65,000 in unregistered investments to their advisory clients. The Division further alleges that in selling the securities, All-In-One and Estrada made unsuitable recommendations and material misrepresentations regarding the investments. All-In-One and Estrada were ordered to cease and desist from violations of the anti-fraud provisions of the Securities Act, and given notice of the Division’s intent to order revoke their investment adviser and investment adviser representative registrations. In addition, the Division has provided notice of its intent to order full investor restitution, impose fines, and charge costs. All-In-One and Estrada have the right to request a hearing on this matter.
Marina Investors Group, Henry Jones - S-04-181-05-FO01 - Final Order
On June 13, 2005, a Final Order to Cease and Desist from violations of the Washington Securities Act was issued against Marina Investors Group and Henry Jones. A Summary Order S-04-181-05-TO01 was entered on February 28, 2005 against H & J Energy Company, Inc., Tri Energy, Inc., Marina Investors Group, Thomas Avery, Lowell Decker, Robert Jennings, Henry Jones, Arthur Simburg, Mildred Stultz and Ronald Stultz. Respondents Marina Investors Group and Henry Jones declined to pursue a hearing in the matter. The Final Order, as it relates to Marina Investors Group and Henry Jones, alleges that from September 2003 and continuing through January 2005 Thomas Avery, Lowell Decker, Robert Jennings, Henry Jones, Arthur Simburg, Mildred Stultz and Ronald Stultz, solicited and aided in the solicitation of investors for investments in Tri Energy, Inc., H & J Energy Company, Inc. and Marina Investors Group. The Order further alleges that investors believed that they were investing in the coal mining operations of Tri Energy, Inc. and H & J Energy Company, Inc. by which they could double their money in 90 days or invest in a gold transaction between Israel and Dubai in which they could triple their money in 90 days. The Respondents, Marina Investors Group and Henry Jones, may seek judicial review of this matter.
This matter was resolved May 19, 2006 by the entry of the following consent orders: S-05-092-05-CO01, S-05-092-05-CO02, and S-05-092-05-CO03.
Signed, Sealed & Delivered, Inc. , Joyce Feeley Ratcliffe - S-05-082-05-SC01 - Statement of Charges
On June 8, 2005, the Securities Division entered a Temporary Cease and Desist Order and Statement of Charges, Order for Affirmative Relief, and Notice of Intent to Deny Escrow Licenses, to Impose Fines and to Prohibit Participation in the Escrow Industry against Signed, Sealed & Delivered, Inc. (“SSD”), dba Lakeside Escrow, and Joyce Feeley Ratcliffe (“Ratcliffe”). Ratcliffe is the president of SSD, which allegedly has been conducting an unlicensed escrow business in Bonney Lake, Washington. The order alleges that SSD and Ratcliffe have failed to perform timely reconciliations and itemize disbursements and have made unauthorized withdrawals from the escrow trust account. The order seeks to impose a fine of $25,000 and to prohibit Ratcliffe’s participation in the escrow industry. The respondents each have the right to request an administrative hearing on the order.
Teresa E. White-Snyder - S-04-136-05-CO01 - Consent Order
On June 1, 2005, the Securities Division entered a Consent Order against Teresa E. White-Snyder (“White-Snyder”). The Division had entered a Statement of Charges S-04-136-05-SC01 against White-Snyder, formerly of D.A. Davidson & Co., Inc., alleging that she engaged in dishonest and unethical practices in the securities business. The Division alleges that, from 1997 to 2003, White-Snyder borrowed at least $46,700 from her brokerage customers. Pursuant to the terms of the Consent Order, White-Snyder was ordered to cease and desist from violations of the anti-fraud provisions of the Securities Act. White-Snyder was also permanently barred from being licensed as a securities professional in the state of Washington. White-Snyder waived her right to a hearing and further proceedings in the matter.
Northwest Financial Solutions, Ricardo Phillips (also known as Stone Phillips) - S-05-011-05-FO01 - Final Order
On May 25, 2005, the Securities Division entered a Final Order to Cease and Desist against Northwest Financial Solutions and Ricardo Phillips (also known as Stone Phillips and several other names). The Final Order alleges that NWFS and Phillips solicited customers in King, Pierce, and Grays Harbor counties for financing and investment transactions. The customers were solicited through advertisements in church publications, through financial seminars Phillips presented at churches, and through websites. The Final Order further concludes that Respondents each violated the anti-fraud and registration provisions of the Securities Act of Washington by failing to disclose material facts in connection with the offer and sale of unregistered securities. At the time of the offer and sale of the securities, Northwest Financial Solutions was not licensed to sell securities and Phillips was not registered as a broker-dealer or securities salesperson within the State of Washington. Respondents may seek judicial review of this matter.
Peruvian Resources Management, Machu Picchu Gold Mining Corporation, Douglas Cyr, Douglas Ashworth, Thomas Olson - S-05-007-05-TO01 - Summary Order
On May 18, 2005, the Securities Division entered a Summary Order against Peruvian Resources Management USA, LLC; Machu Picchu Gold Mining Corporation; Douglas Cyr; Douglas Ashworth; and Thomas Olson (collectively “Respondents”). Thomas Olson resides in Pierce County, Washington. The Summary Order alleges that Respondents raised at least $35,000 by offering and selling purported capital contributions in a gold dredging operation in Peru to investors in Pierce, Snohomish, and Spokane counties. The Summary Order further alleges that among other things Respondents did not disclose to investors that several states have taken action against Douglas Ashworth for securities violations. The Summary Order further alleges that Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington in connection with the offer and sale of such securities. The Division ordered Respondents to cease and desist from violating the securities registration and anti-fraud provisions of the Securities Act of Washington. The Division also gave notice of its intent to collect fines and costs. The Respondents have a right to request a hearing in the matter.
A Final Order was entered regarding this matter on December 9, 2008.
Metropolitan Investment Securities, Inc., Randal M. Saccomanno, Respondent - S-04-041-05-CO09 - Consent Order
On May 2, 2005, the Securities Division entered a Consent Order against Randal M. Saccomanno (“Saccomanno”). The Division had entered a Statement of Charges on October 27, 2004 against fifteen former Metropolitan Investment Securities, Inc. (“MIS”) securities salespersons, including Saccomanno. The Division alleged that MIS securities salespersons made unsuitable recommendations of securities offered by Metropolitan Mortgage and Securities Co., Inc. (“Metropolitan”) and Summit Securities, Inc. (“Summit”) to Pacific Northwest investors who were seeking low risk investments to sustain them in their retirement years, thereby improperly concentrating the limited assets of these investors in Metropolitan and Summit. Pursuant to the terms of the Consent Order, Saccomanno was ordered to cease and desist from violations of the anti-fraud provisions of the Securities Act. Saccomanno’s securities salesperson registration was also suspended for a period of six months, effectively immediately upon entry of the Consent Order, and he was ordered to pay a $3,000 fine. Saccomanno waived his right to a hearing and further proceedings in the matter.
Viktor V. Klimenko – S-04-206-05-TO01 – Summary Order
On April 29, 2005, the Securities Division entered a Summary Order to Cease and Desist against Viktor V. Klimenko, doing business as International Supplier AR, of Kirkland, Washington. The Division alleges that from September 2003 through January 2004 Klimenko raised more than $100,000 from 14 people to invest in his international trading company. The Securities Division further alleges that Klimenko made material misrepresentations regarding the investment opportunity. These misrepresentations include Klimenko’s failure to inform investors of the risks associated with international trade and the perilous financial condition of his business. Klimenko was 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, and given notice of the Division’s intent to order restitution, impose fines, and charge costs. Klimenko has the right to request a hearing on this matter.
Reserve Foundation Trust, Gretchen Sidorov, Brent Gill, Mary Ann Gough - S-04-247-05-SC01 - Statement of Charges
On April 27, 2005, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist against Reserve Foundation Trust LLC (“RFT”), Gretchen Sidorov (“Sidorov”), Brent Gill (“Gill”) and Mary Ann Gough (“Gough”). RFT claimed to trade in off-shore bank debentures and offered and sold investment opportunities in its trading program to members of the public. The Division alleged that on or about June of 2000, Sidorov, raised approximately $190,000 for RFT by offering and selling unregistered investments to approximately four investors after becoming involved with the investment through Gill and Gough. Sidorov, at the time, resided in Washington State. The Division further alleged that the Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington in connection with the sale of such securities. The Respondents have a right to request a hearing in this matter.
Resource Development International LLC, James Eugene Edwards, David Eugene Edwards, Steve Wayne Bastrom, Earl Hubert Dangelmaier, Edward Morris Harris, Larry Paul Johnson, Thomas Mark Krabbenhoft, Richard Albert Labadie, Sharyn Kae Meenderinck, William Joseph Slaney, James Ronald Smith – S-00-050-05-SC01 – Statement of Charges
On April 14, 2005, the Securities Division entered a Statement of Charges and Notice of Intention To Enter an Order To Cease and Desist, Impose Fines, and Charge Costs against former Resource Development International LLC (“RDI”) securities salespersons James Eugene Edwards, David Eugene Edwards, Steve Wayne Bastrom, Earl Hubert Dangelmaier, Edward Morris Harris, Larry Paul Johnson, Thomas Mark Krabbenhoft, Richard Albert Labadie, Sharyn Kae Meenderinck, William Joseph Slaney, and James Ronald Smith. The Division alleges that Respondents, as unregistered securities salespersons, offered or sold unregistered securities in the form of RDI prime bank notes. The Division also alleges that Respondents omitted material facts in the offer and sale of the RDI prime bank notes. The Division stated its intent to order Respondents to cease and desist from violating the registration and anti-fraud provisions of the Securities Act. The Division also stated its intent to fine all Respondents, and to charge costs to all Respondents. The Respondents have a right to request a hearing in this matter.
On June 14, 2006, the Securities Division entered a Consent Order with former Resource Development International LLC (“RDI”) securities salesperson Richard Albert Labadie (“Labadie”).
On July 7, 2006, the Securities Division entered a Consent Order with former Resource Development International LLC ("RDI") securities salesperson Earl Hubert Dangelmaier.
On March 27, 2007, the Securities Division entered a Consent Order with former Resource Development International LLC ("RDI") securities salesperson Larry Paul Johnson.
Mana, LLC and Evelyn A. Nichols - S-03-201-04-CO01 - Consent Order
On April 11, 2005, the Securities Division entered into a Consent Order with Mana, LLC and its President and CEO, Evelyn A. Nichols ("Nichols"). Mana is a start-up company with no operations whose business is centered on the Mana Loan, a financing mortgage concept. The Division alleged that between 2001 and 2003, the Respondents raised over $250,000 by offering and selling unregistered promissory notes and LLC interests to approximately twenty-five investors in Washington, Florida, and Arizona. The Division further alleged that the Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington, and failed to disclose material facts in connection with the sale of the securities. In the Consent Order, the Respondents neither admitted nor denied the allegations, but agreed to cease violating the Securities Act in the future. Respondents agreed to reimburse the Division $5,000 for the cost of investigating this matter and pay a $5,000 fine. Respondents waived the right to a hearing or further proceedings in this matter.
Philippine Gold Treasury Recovery Project, Larry Andreen, Josephine Valenzuela “Josie” Theaker - S-03-024-05-TO01 - Summary Order
On April 11, 2005, the Securities Division entered a Summary Order against the Philippine Gold Treasury Recovery Project, Larry Andreen also known as Larry W. Kennaugh, and Josephine Valenzuela “Josie” Theaker (collectively “Respondents”). The Summary Order alleges that beginning in February 2000 Respondents raised at least $744,966 and possibly as much as $1,100,000 by offering and selling purported limited partnership interests in a treasure recovery project in the Philippines. Most of the offers and sales took place in King and Snohomish counties. Respondents allegedly told investors that the treasure to be recovered was hidden by the Japanese military during World War II. The Division further alleges that Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington in connection with the offer and sale of such securities. The Division ordered Respondents to cease and desist from violating the securities registration and anti-fraud provisions of the Securities Act of Washington. The Division also gave notice of its intent to collect fines and costs. The Respondents have a right to request a hearing in the matter.
A+ Investments, Soon Ok Hyun, Byung (Brian) K. Hyun - S-04-209-04-CO01 - Consent Order
On April 7, 2005, the Securities Division entered a Consent Order with Respondents, A+ Investments, Inc., Soon Ok Hyun, and Byung (Brian) K. Hyun. The Department alleged that Respondents raised money to be used for trading in futures, commodities, and similar investments. Respondents were not registered as broker/dealers and/or salespersons when they offered and sold unregistered securities totaling approximately $445,000 in Washington. Respondents agreed to cease and desist from violating the registration and the anti-fraud provisions of the Washington Securities Act. They also paid fines of $3,000 and costs of $1,000. Respondents waived a hearing and judicial review of this matter.
Rockmann Development Group, Allen Olson, Arbor Center LLC, Bridgeport Gardens LLC, Bridgeport Oaks LLC, Winlock Industrial Park LLC, Emerson Courtyard LLC - S-04-039-04-CO01 - Consent Order
On April 6, 2005, the Securities Division entered a Consent Order with Respondents Rockmann Development Group, Allen Olson, and five LLCs that Olson formed and managed for alleged violations of the Securities Act of Washington. The Division alleged that the Respondents, who develop commercial real estate, offered or sold securities in certain real estate projects that were not registered with the Division, without being licensed as securities salespersons or broker-dealers with the Division, and without full disclosure of material facts to investors. In the Consent Order, the Respondents neither admitted nor denied the allegations but did agree to cease and desist from future violations of the Act, to pay $2,000 in the Division’s investigative costs, and to send affected investors a copy of the order a cover letter. The Respondents waived their right to a hearing and to further proceedings in the matter.
IRA Resource Associates, Patrick and Claudia Rice – S-04-039-04-CO02 – Consent Order
On April 6, 2005, the Securities Division entered a Consent Order with Respondents IRA Resource Associates and Patrick and Claudia Rice for alleged violations of the Securities Act of Washington. The Division alleged that the Respondents, who plan real estate and other investment strategies from a principal location in Camas but who are not registered as salespersons, broker-dealers, investment advisers or IA representatives, offered or sold securities in certain real estate projects that were not registered with the Division and without full disclosure of material facts to investors. In the Consent Order, the Respondents neither admitted nor denied the allegations but did agree to cease and desist from future violations of the Act and to pay $2,000 in the Division’s investigative costs. The Respondents waived their right to a hearing and to further proceedings in the matter.
Metropolitan Investment Securities, Inc., Ronald H. Mayfield - S-04-041-05-CO10 - Consent Order
On April 5, 2005, the Securities Division entered a Consent Order against Ronald H. Mayfield (“Mayfield”). The Division had entered a Statement of Charges on October 27, 2004 against fifteen former Metropolitan Investment Securities, Inc. (“MIS”) securities salespersons, including Mayfield. The Division alleged that MIS securities salespersons made unsuitable recommendations of securities offered by Metropolitan Mortgage and Securities Co., Inc. (“Metropolitan”) and Summit Securities, Inc. (“Summit”) to Pacific Northwest investors who were seeking low risk investments to sustain them in their retirement years, thereby improperly concentrating the limited assets of these investors in Metropolitan and Summit. Pursuant to the terms of the Consent Order, Mayfield was ordered to cease and desist from violations of the anti-fraud provisions of the Securities Act. Based on his demonstrated inability to pay a fine and poor health, the Division ordered that Mayfield be subject to a $30,000 suspended fine that is contingent upon his future compliance with the Consent Order. Mayfield is also permanently barred from being licensed as a securities professional in the state of Washington. Mayfield waived his right to a hearing and further proceedings in the matter.
Millennium Marketing and Management, LLC and James M. Pielemeier - S-04-147-04-TO01 - Summary Order
On April 4, 2005, the Securities Division entered a Summary Order to Cease and Desist against Millennium Marketing and Management, LLC and its founder, James M. Pielemeier, a resident of Arlington, Washington. According to its materials, Millennium's primary business is to locate investment opportunities. The Division alleged that between at least April and October 2003, Pielemeier offered and sold unregistered investments in approximately a dozen joint ventures related to IPIC International, Inc. ("IPIC") to at least twenty investors who reside primarily in Washington and Oregon. On November 17, 2003, the U.S. Securities and Exchange Commission ("SEC") filed an emergency civil action against IPIC and several individuals associated with it. The SEC alleged that the defendants fraudulently raised at least $160 million, through a massive Ponzi scheme that targeted members of evangelical Christian congregations as part of an affinity fraud. Millennium's investors ultimately lost approximately $450,000 in IPIC-related investments. Pielemeier later raised over $100,000 through the offer and sale of unregistered Millennium joint venture agreements involving real estate ventures in Mexico and Belize.
The Division further alleged that the Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington. The Division ordered the Respondents to cease and desist from violating securities registration provisions of the Securities Act of Washington. The Division also gave notice of its intention to impose a fine and to collect costs. The Respondents have a right to request a hearing in this matter.
Iris Kaye Rounsaville – S-04-070-05-TO01 – Summary Order
On March 28, 2005, the Securities Division entered a Summary Order to Cease and Desist against Iris Kaye Rounsaville of Bremerton, Washington. The Division alleges that from August 2003 and continuing through August 2004 Rounsaville raised over $154,000 from 13 people to invest in the purchase and sale of rare coins. The Securities Division further alleges that Rounsaville made material misrepresentations regarding the investment opportunity. These misrepresentations include Rounsaville’s failure to inform investors that she had been the subject of a securities enforcement action by the Maryland Securities Commissioner and that she had been convicted of mail fraud and sentenced to 5 years incarceration in 1993 for a fraudulent investment offering. Rounsaville was 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. Rounsaville has the right to request a hearing on this matter.
Deutsche Bank Securities, Inc. – S-04-251-04-CO01 – Consent Order
On March 25, 2005, the Securities Division entered into a consent order with Deutsche Bank Securities, Inc., a registered broker-dealer, in connection with conflicts of interest concerning Deutsche Bank, Inc.’s research analysts. This consent order is part of a broader settlement of analyst conflict issues investigated as part of a multi-state task force working the U.S. Securities & Exchange Commission, the New York Stock Exchange, and the National Association of Securities Dealers. Under the consent order, Deutsche Bank Securities, Inc. agreed to implement certain changes with respect to its research practices and to cease and desist from violations of the Securities Act of Washington. Deutsche Bank Securities, Inc. paid a fine of $522,271.
Metropolitan Investment Securities, Inc. Securities Salesperson: Elizabeth Adams Armstrong, Respondent - S-04-041-05-CO03 - Consent Order
On March 23, 2005, the Securities Division entered a Consent Order against Elizabeth Adams Armstrong (“ E. Armstrong”). The Division had entered a Statement of Charges on October 27, 2004 against fifteen former Metropolitan Investment Securities, Inc. (“MIS”) securities salespersons, including E. Armstrong. The Division alleged that MIS securities salespersons made unsuitable recommendations of securities offered by Metropolitan Mortgage and Securities Co., Inc. (“Metropolitan”) and Summit Securities, Inc. (“Summit”) to Pacific Northwest investors who were seeking low risk investments to sustain them in their retirement years, thereby improperly concentrating the limited assets of these investors in Metropolitan and Summit. Pursuant to the terms of the Consent Order, E. Armstrong was ordered to cease and desist from violations of the anti-fraud provisions of the Securities Act. E. Armstrong was also censured by the Division and ordered to pay a $5,000 fine. E. Armstrong waived her right to a hearing and further proceedings in the matter.
Arizona Idaho Mining, Douglas Baker - S-04-240-04-SC01 - Statement of Charges
On March 21, 2005, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist and to Impose Fines against Arizona Idaho Mining, LLC (‘AZID”), a company formed to engage in the exploration, development and production of two gold mines, and its managing member, Douglas Baker (“Baker”). The Division alleged that on or about March of 2001, AZID and Baker raised approximately $2.7 million by offering and selling unregistered investment units from approximately fifty-five investors, including approximately $200,000 from six Washington residents. The Division further alleged that the Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington in connection with the sale of such securities. The Division ordered the Respondents to cease and desist from violating securities registration and anti-fraud provisions of the Securities Act of Washington. The Division also gave notice of its intention to impose fines. The Respondents have a right to request a hearing in this matter.
The Loan Shoppe, Charles E Carver, MRNA Financial, Mario Robert Naranjo, Jane Byron - S-05-028-05-TO01 - Summary Order
On March 18, 2005, the Securities Division issued a Summary Order to Cease & Desist against The Loan Shoppe, Inc, Charles E Carver, MRNA Financial, Inc., Mario Robert Naranjo, and Jane Byron. The Respondents run a payday loan company and also offer factoring of accounts receivable and prepaid credit cards. The Division alleges that between May 2002 and November 2004, Respondents offered and sold investment opportunities to at least 32 Washington residents, made misrepresentations about the investment opportunity to investors, and omitted material facts necessary in order to make the statements made, in the light of circumstances under which they were made, not misleading. The order also imposes a fine of $50,000 and costs of $2,000 jointly and severally upon the Respondents. The Respondents may each make a written request for a hearing.
Cathy Marie Patrick – S-05-038-05-SC01 – Statement of Charges
On March 17, 2005, the Department of Financial Institutions entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist and to Prohibit Participation in the Escrow Industry against Cathy Marie Patrick. The Department alleges that Patrick was convicted of federal wire fraud in May 2004 while participating in a scheme to defraud lenders when closing an escrow transaction. The Department alleges that this conduct was a prohibited practice and constitutes the basis for prohibiting Patrick from participating in the conduct of the affairs of a licensed escrow agent. Patrick has the right to request an administrative hearing on the Statement of Charges.
Thomas Weisel Partners, LLC – S-04-252-CO01 – Consent Order
On March 16, 2005, the Securities Division entered into a consent order with Thomas Weisel Partners, LLC (TWP), a registered broker-dealer, in connection with conflicts of interest concerning TWP’s research analysts. This consent order is part of a broader settlement of analyst conflict issues investigated as part of a multi-state task force working the U.S. Securities & Exchange Commission, the New York Stock Exchange, and the National Association of Securities Dealers. Under the consent order, TWP agreed to implement certain changes with respect to its research practices and to cease and desist from violations of the Securities Act of Washington. TWP paid a fine of $90,830.
Oxford Micro Devices, Inc.; Boundless Security Systems, Inc. and Steven G. Morton - S-04-010-05-FO01 - Final Order
On March 15, 2005, the Securities Division entered a Final Order to Cease and Desist against Oxford Micro Devices, Inc.; Boundless Security Systems, Inc.; and Steven G. Morton. Morton and the companies did business in Connecticut. Oxford Micro Devices, Inc. purportedly developed semiconductor chips and Boundless Security Systems, Inc. purportedly marketed digital video surveillance systems. The Securities Division found that Respondents violated the securities registration provisions of the Securities Act and that Morton misrepresented and failed to disclose material information when offering and selling Oxford Micro Devices, Inc. stock and stock warrants and when offering Boundless Security Systems, Inc. stock. The respondents have the right to request judicial review of the order.
Metropolitan Investment Securities, Inc., Theodore R. Metoyer - S-04-041-05-CO08 - Consent Order
On March 14, 2005, the Securities Division entered a Consent Order against Theodore R. Metoyer (“Metoyer”). The Division had entered a Statement of Charges on October 27, 2004 against fifteen former Metropolitan Investment Securities, Inc. (“MIS”) securities salespersons, including Metoyer. The Division alleged that MIS securities salespersons made unsuitable recommendations of securities offered by Metropolitan Mortgage and Securities Co., Inc. (“Metropolitan”) and Summit Securities, Inc. (“Summit”) to Pacific Northwest investors who were seeking low risk investments to sustain them in their retirement years, thereby improperly concentrating the limited assets of these investors in Metropolitan and Summit. Pursuant to the terms of the Consent Order, Metoyer was ordered to cease and desist from violations of the anti-fraud provisions of the Securities Act. Metoyer was also permanently barred from being licensed as a securities professional in the state of Washington and was ordered to pay a $5,000 fine. Metoyer waived his right to a hearing and further proceedings in the matter.
Metropolitan Investment Securities, Inc., Suzanne T. Adams - S-04-041-05-CO02 - Consent Order
On March 14, 2005, the Securities Division entered a Consent Order against Suzanne T. Adams (“ S. Adams”). The Division had entered a Statement of Charges on October 27, 2004 against fifteen former Metropolitan Investment Securities, Inc. (“MIS”) securities salespersons, including S. Adams. The Division alleged that MIS securities salespersons made unsuitable recommendations of securities offered by Metropolitan Mortgage and Securities Co., Inc. (“Metropolitan”) and Summit Securities, Inc. (“Summit”) to Pacific Northwest investors who were seeking low risk investments to sustain them in their retirement years, thereby improperly concentrating the limited assets of these investors in Metropolitan and Summit. Pursuant to the terms of the Consent Order, S. Adams was ordered to cease and desist from violations of the anti-fraud provisions of the Securities Act. S. Adams was also permanently barred from being licensed as a securities professional in the state of Washington and was ordered to pay a $7,500 fine. S. Adams waived her right to a hearing and further proceedings in the matter.
Metropolitan Investment Securities, Inc., Gordon E. Adams - S-04-041-05-CO01 - Consent Order
On March 14, 2005, the Securities Division entered a Consent Order against Gordon E. Adams (“G. Adams”). The Division had entered a Statement of Charges on October 27, 2004 against fifteen former Metropolitan Investment Securities, Inc. (“MIS”) securities salespersons, including G. Adams. The Division alleged that MIS securities salespersons made unsuitable recommendations of securities offered by Metropolitan Mortgage and Securities Co., Inc. (“Metropolitan”) and Summit Securities, Inc. (“Summit”) to Pacific Northwest investors who were seeking low risk investments to sustain them in their retirement years, thereby improperly concentrating the limited assets of these investors in Metropolitan and Summit. Pursuant to the terms of the Consent Order, G. Adams was ordered to cease and desist from violations of the anti-fraud provisions of the Securities Act. G. Adams was also permanently barred from being licensed as a securities professional in the state of Washington and was ordered to pay a $7,500 fine. G. Adams waived his right to a hearing and further proceedings in the matter.
Clement Ireo Ejedawe, Clem Chad, Bradford Capital Group - S-99-023-05-CO01 - Consent Order
On March 14, 2005, the Washington Securities Division entered a consent order with Clement Ireo Ejedawe, aka Clem Chad, and Bradford Capital Group, Inc. (“Respondents”). The respondents represented that they had sold two investments totaling approximately $50,000 in Washington. Respondents agreed to cease and desist from violating the registration and the anti-fraud provisions of the Washington Securities Act. They also paid costs of $1,000. The respondents waived a hearing and judicial review of this matter.
Dry Cleaning To-Your-Door and Margo A. Sloan - S-05-004-05-CO01 - Consent Order
On March 1, 2005, the Securities Division entered into a Consent Order with Dry Cleaning To-Your-Door ("DCTYD") and Margo A. Sloan ("Sloan"). DCTYD is the seller of business opportunities to operate, pick up, and deliver dry cleaning services. The Division alleged that DCTYD and Sloan offered and sold two unregistered franchises to Washington residents. Pursuant to the terms of the Consent Order, DCTYD and Sloan paid the Securities Division's investigation costs in the amount of $1,000. DCTYD and Sloan waived their right to a hearing and further proceedings in the matter.
Michael R. Brooks – S-03-176-05-FO03 – Final Order
On March 1, 2005, the Department entered a Final Order against Michael R. Brooks (“Brooks”). The Securities Division had entered a Summary Order on May 17, 2004 alleging that from 1992 to 2002, while employed as a securities salesperson, Brooks borrowed money from at least two customers. The Division further alleged that Brooks offered or sold unregistered securities and made material misrepresentations or omissions in connection with the sale of such securities. Brooks requested a hearing in the matter. Due to his failure to participate in the prehearing conference, the Office of Administrative Hearings issued an Order of Default on October 20, 2004 affirming the Division’s Summary Order. Brooks did not file a petition for review with the Director of the Department. The Final Order adopts the Findings of Fact and Conclusions of Law as set forth in the Summary Order, revokes Brooks’s securities salesperson registration, and orders him to cease and desist from violating the registration and anti-fraud provisions of the Securities Act. The Department also ordered Brooks to pay a fine of $15,000 and repay the costs of the Securities Division’s investigation. Brooks may seek judicial review of the Final Order.
Richard MacDuff, Peak Olympic Financial, Inc., and Olympic Income Group Limited Partnership - S-03-177-05-FO01 - Final Order
On March 1, 2005, the Securities Division entered a Final Order to Cease and Desist against Richard MacDuff ("MacDuff"), Peak Olympic Financial, Inc. ("POF"), and Olympic Income Group Limited Partnership ("OIG"). The Division had entered a Statement of Charges S-03-177-04-SC01 against those Respondents on December 15, 2004. The Division alleged that MacDuff, through POF and OIG, solicited investments in a pooled investment fund from approximately 66 investors totaling over $680,000. Many of these investors were residents of Kitsap County, Washington. The Division alleges that MacDuff used these funds to place high-risk options trades and to pay business and personal expenses. The Division ordered MacDuff, POF, and OIG to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act. The Division also permanently barred MacDuff from being licensed as a securities professional in the state of Washington and ordered him to pay a fine of $30,000. MacDuff, POF, and OIG may seek judicial review of the Final Order.
Alliance Analytical Laboratories, LLC; and Anna V. Cote (aka Anna V. Wilson and Anna V. Finch) - S-04-201-05-TO01 - Summary Order
On February 28, 2005, the Securities Division entered a Summary Order to Cease and Desist and Notice of Intent to Charge Costs against Alliance Analytical Laboratories, LLC ("AAL"), a laboratory testing and analysis company in Yakima, Washington, and its president, Anna V. Cote (“Cote”). The Division alleged that between December 2001 and November 2002, AAL and Cote raised approximately $135,000 by offering and selling unregistered promissory notes to three Washington residents. The Division further alleged that the Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington in connection with the sale of such securities. The Division ordered the Respondents to cease and desist from violating securities registration and anti-fraud provisions of the Securities Act of Washington. The Division also gave notice of its intention to collect costs. The Respondents have a right to request a hearing in this matter.
MA Quik Framing Inc. and Laurance D. Anthone - S-03-223-05-FO01 - Final Order
On February 28, 2005, the Securities Division entered a Final Order to Cease and Desist and imposed a $10,000 fine and $5,000 in costs against MA Quik Framing Inc. ("MA Quik") and its CEO, Laurence D. Anthone, based on their failure to request a hearing after being served with summary cease and desist order. The Respondents operate a land acquisition and development company in Tukwila, Washington. The Final Order finds that between at least July and October 2003, MA Quik and Anthone raised approximately $100,000 by offering and selling unregistered promissory notes and profit sharing agreements to at least five Washington residents. The Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington, and failed to disclose material facts, including the risks involved in the investment. The Respondents may seek judicial review of this Order.
Mountain Escrow, Inc.; Pamela Skillman - S-04-130-05-CO01 - Consent Order
On February 28, 2005, the Securities Division entered a Consent Order against Mountain Escrow, Inc. and Pamela Skillman (“Skillman”). The Division had entered a Statement of Charges on August 17, 2004. The Division alleged that Mountain Escrow, located in Yelm, and its owner and designated escrow officer, Skillman, misappropriated about $40,000 from the trust account; commingled trust and business funds; kept inadequate records, including written instructions for account transfers and reconciliations; made misrepresentations to examiners and clients; and failed to properly submit certain notices to the Division. Pursuant to the terms of the Consent Order, Mountain Escrow, Inc.’s escrow agent license and Skillman’s designated escrow officer license are revoked. Skillman is also prohibited from participating in the conduct of the affairs of any licensed escrow agent and was ordered to pay a $1,000 fine. Mountain Escrow, Inc. and Skillman neither admitted nor denied the Division’s tentative findings of fact and conclusions of law, but waived their right to a hearing and further proceedings in the matter.
Inter Island Escrow, Inc. and Kenneth E. Loyd - S-03-178-05-FO02 - Final Order
On February 22, 2005, the Department of Financial Institutions entered a Final Order to Cease and Desist and Revoking Escrow Agent License against Inter Island Escrow, Inc. and Kenneth E. Loyd. The order alleges that Loyd and Inter Island Escrow each failed to maintain reconciliations, made disbursements in excess of deposits and failed to ensure that all escrow transactions were supervised by a licensed escrow officer. Respondents each have the right to request judicial review of the order.
Metropolitan Investment Securities, Inc. Securities Salesperson: Michael H. McMillen, Respondent - S-04-041-05-CO06 - Consent Order
On February 17, 2005, the Securities Division entered a Consent Order against Michael H. McMillen (“McMillen”). The Division had entered a Statement of Charges on October 27, 2004 against fifteen former Metropolitan Investment Securities, Inc. (“MIS”) securities salespersons, including McMillen. The Division alleged that MIS securities salespersons made unsuitable recommendations of securities offered by Metropolitan Mortgage and Securities Co., Inc. (“Metropolitan”) and Summit Securities, Inc. (“Summit”) to Pacific Northwest investors who were seeking low risk investments to sustain them in their retirement years, thereby improperly concentrating the limited assets of these investors in Metropolitan and Summit. Pursuant to the terms of the Consent Order, McMillen was ordered to cease and desist from violations of the anti-fraud provisions of the Securities Act. McMillen was also censured by the Division and ordered to pay a $5,000 fine. McMillen waived his right to a hearing and further proceedings in the matter.
Metropolitan Investment Securities, Inc. Securities Salesperson: Lori L. Masterson, Respondent - S-04-041-05-CO05 - Consent Order
On February 17, 2005, the Securities Division entered a Consent Order against Lori L. Masterson (“Masterson”). The Division had entered a Statement of Charges on October 27, 2004 against fifteen former Metropolitan Investment Securities, Inc. (“MIS”) securities salespersons, including Masterson. The Division alleged that MIS securities salespersons made unsuitable recommendations of securities offered by Metropolitan Mortgage and Securities Co., Inc. (“Metropolitan”) and Summit Securities, Inc. (“Summit”) to Pacific Northwest investors who were seeking low risk investments to sustain them in their retirement years, thereby improperly concentrating the limited assets of these investors in Metropolitan and Summit. Pursuant to the terms of the Consent Order, Masterson was ordered to cease and desist from violations of the anti-fraud provisions of the Securities Act. Masterson was also censured by the Division and ordered to pay a $5,000 fine. Masterson waived her right to a hearing and further proceedings in the matter.
Metropolitan Investment Securities, Inc. Securities, Gary T. Hundeby, Respondent - S-04-041-05-CO04 - Consent Order
On February 17, 2005, the Securities Division entered a Consent Order against Gary T. Hundeby (“Hundeby”). The Division had entered a Statement of Charges on October 27, 2004 against fifteen former Metropolitan Investment Securities, Inc. (“MIS”) securities salespersons, including Hundeby. The Division alleged that MIS securities salespersons made unsuitable recommendations of securities offered by Metropolitan Mortgage and Securities Co., Inc. (“Metropolitan”) and Summit Securities, Inc. (“Summit”) to Pacific Northwest investors who were seeking low risk investments to sustain them in their retirement years, thereby improperly concentrating the limited assets of these investors in Metropolitan and Summit. Pursuant to the terms of the Consent Order, Hundeby was ordered to cease and desist from violations of the anti-fraud provisions of the Securities Act. Hundeby was also censured by the Division and ordered to pay a $5,000 fine. Hundeby waived his right to a hearing and further proceedings in the matter.
Newcastle Escrow Corporation, Eve Marie Manalo, and Henry G. Jose, Respondents - S-04-221-04-CO01 - Consent Order
On February 15, 2005, the Securities Division entered into a Consent Order with Newcastle Escrow Corporation ("Newcastle"), Eve Marie Manalo ("Manalo"), and Henry Jose ("Jose"). The Division alleged that Newcastle, Manalo, and Jose operated without a proper escrow agent license. The Division also alleged that Manalo held herself out to be a Designated Escrow Officer ("DEO") without a DEO license. Pursuant to the terms of the Consent Order, Newcastle, Manalo, and Jose paid fines in the amount of $4,000, as well as offered and paid the Securities Division's investigation costs in the amount of $1,000. Newcastle, Manalo, and Jose also agreed to cooperate fully with future investigations. Newcastle, Manalo, and Jose waived their right to a hearing and further proceedings in the matter.
InterBay Funding Group Inc., Donald J. Vanhook, Jeanne Vanhook Respondents - S-05-026-05-SC01 - Statement of Charges
On February 9, 2005, the Securities Division entered a Statement of Charges, Summary Order Revoking Exemptions, and Notice of Intent to Enter Stop Order and Order to Cease and Desist, Imposing Fines, and Assessing Costs against InterBay Funding Group Inc., Donald J. Vanhook, and Jeanne Vanhook. The Division alleged that InterBay, principally located in Lynwood, is a debenture company that has been selling notes without maintaining the required net worth. The Division also alleged that InterBay and the Vanhooks made materially misleading statements or omissions relating to its sale of notes; have violated rules regarding debt servicing standards; and, particularly given untimely and unreliable financial reports, and have engaged in unsafe or unsound practices in conducting the business of a debenture company. The Division summarily revoked InterBay’s ability to offer or sell securities under exemptions from registration and gave the Respondents notice of its intention to enter an order denying InterBay’s pending registration application, to cease and desist from violating the Securities Act, imposing a $50,000 fine, and assessing costs. The Respondents have the right to request a hearing in this matter.
Mana, LLC and Evelyn A. Nichols, Respondents - S-03-201-04-TO01 - Summary Order
On February 7, 2005, the Securities Division entered a Summary Order to Cease and Desist against Mana, LLC and its President and CEO, Evelyn A. Nichols ("Nichols"). Mana is a start-up company with no operations whose business is centered on the Mana Loan, a financing mortgage concept. The Division alleged that between 2001 and 2003, the Respondents raised over $250,000 by offering and selling unregistered promissory notes and LLC interests to approximately twenty-five investors in Washington, Florida, and Arizona. The Division further alleged that the Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington, and failed to disclose material facts in connection with the sale of the securities. The Division ordered the Respondents to cease and desist from violating securities registration provisions of the Securities Act of Washington. The Division also gave notice of its intention to impose a fine and to collect costs. The Respondents have a right to request a hearing in this matter.
Northwest Financial Solutions and Ricardo “Stone” Phillips, Respondents - S-05-011-05-TO01 - Summary Order
On February 2, 2005, the Securities Division entered a Summary Order and Notice of Intent to Impose Fines and Recover Costs against Northwest Financial Solutions and Ricardo “Stone” Phillips. The Summary Order alleges that NWFS and Phillips solicited customers in King, Pierce, and Grays Harbor counties for financing and investment transactions. The customers were solicited through advertisements in church publications, through financial seminars Phillips presented at churches, and through websites. The Summary Order further alleges that Respondents each violated the anti-fraud and registration provisions of the Securities Act by failing to disclose material facts in connection with the offer and sale of unregistered securities. At the time of the offer and sale of the securities, Northwest Financial Solutions was not licensed to sell securities and Phillips was not registered as a broker-dealer or securities salesperson within the State of Washington. Respondents each have a right to request a hearing on the Statement of Charges.
Runnymede Capital Partners, L.P., Runnymede Capital Management, L.L.C., and Richard Dalberth, Respondents - S-05-005-05-TO01 – Statement of Charges
On January 31, 2005, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist and to Impose Fines against Draxial Capital Partners, L.P. (formerly known as Runnymede Capital Partners, L.P.), Draxial Capital Management, LLC (formerly known as Runnymede Capital Management, L.L.C.) and Richard S. Dalberth. The Statement of Charges alleges that Respondents, operating from New York, sold investments in an offshore hedge fund. It alleges that Respondents each violated the registration and anti-fraud provisions of the Securities Act by offering and selling unregistered limited partnership interests and failing to disclose material facts in connection with the offer and sale of securities. At the time of the offer and sale of the securities, Draxial Capital Management, LLC (then known as Runnymede Capital Management, L.L.C.) was not registered as a broker-dealer and Dalberth was not registered as a broker-dealer or securities salesperson within the State of Washington. The total amount raised from all investors is over $1.6 million. Respondents each have a right to request a hearing on the Statement of Charges.
Expansion Capital Management and Michael Josef Meyer, Respondents - S-00-006-00-CO01 – Consent Order
On January 31, 2005, the Securities Division entered into a Consent Order with Michael Josef Meyer and Expansion Capital Management, Inc. (ECMI) in settlement of allegations made by the Securities Division in Summary Order Denying Investment Adviser and Investment Adviser Representative Registration, case number 00-02-52, order number SDO-00-82, issued August 25th, 2000. The Securities Division alleged that Meyer, as majority owner and a principal of Expansion Capital Securities, Inc. had engaged in dishonest and unethical practices in the securities business (in that he failed to comply with applicable provisions of the National Association of Securities Dealer Rules of Fair Practice) and that such practices were grounds for denial of investment adviser and investment adviser representative registration under the Securities Act. The Summary Order further alleged that Meyer had not demonstrated that he was qualified to own and operate an investment advisory firm. In the Consent Order, ECMI and Meyer agreed that for a period of at least one year to the following conditions (among others): assets recommended to clients or purchased for discretionary accounts will be limited to investments subject to the Investment Company Act of 1940, exchange-traded or NASDAQ equities (no bulletin board stocks), exchange-listed warrants, bonds, and options for hedging purposes only (i.e., no uncovered call or put positions); ECMI and Meyer are prohibited from engaging in any direct purchase or sale transaction with a client; if ECMI and Meyer recommend, or intend to purchase for a client’s discretionary account, any investment in which they also hold an investment, prior written disclosure must be given to a client; ECMI and Meyer are prohibited from borrowing funds or securities from a client; performance fee arrangements must comply with applicable state and federal law; ECMI will not have custody of client funds or securities, except to bill for services rendered using a specified procedure; no client will be solicited to invest in a limited partnership or other entity owned or managed by ECMI or Meyer in which investor funds will be pooled without prior written notification to and the consent of the Securities Division; ECMI will provide to the Securities Division, within fourteen (14) days of receipt, copies of any written complaint from a client and ECMI’s response to that complaint. Respondents ECMI and Meyer have waived their rights to a hearing in this matter.
Delaware Investments, Inc., and Charles C. Park, Respondents - S-04-256-04-SC01 - Statement of Charges
On January 31, 2005, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist and to Impose Costs and Fines against Respondents, Delaware Investments, Inc., and Charles C. Park. Delaware Investments, Inc., was in the business of managing investor funds for foreign currency exchange. The Division alleges that Delaware Investments, Inc., and Charles C. Park solicited investments in promissory notes from approximately 2 investors totaling over $295,000. The Division alleges that Delaware Investments, Inc., and Charles C. Park offered or sold these securities without the benefit of registration and violated the anti-fraud provision of the Securities Act of Washington in connection with the sale of such securities. The Division stated its intent to order Respondents to permanently cease and desist from violations of the registration and anti-fraud provisions of the Securities Act. The Division also gave notice of its intention to collect fines and costs. The Respondents have a right to request a hearing in this matter.
A+ Investments Inc., Soon Hyun and Byung "Brian" K Kyun , Respondents - S-04-209-04-SC01 - Statement of Charges
On January 19, 2005, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist and to Impose Costs against Respondents, A+ Investments Inc. ("A+ Investments"), Soon Hyun, and Byung "Brian" K. Hyun ("Brian Hyun"). The Division alleges that A+ Investments, Soon Hyun, and Brian Hyun solicited investments in a pooled investment fund from approximately 6 investors totaling over $550,000. The Division alleges that A+ Investments, Soon Hyun, and Brian Hyun offered or sold these securities without the benefit of registration and violated the anti-fraud provision of the Securities Act of Washington in connection with the sale of such securities. The Division stated its intent to order Respondents to permanently cease and desist from violations of the registration and anti-fraud provisions of the Securities Act. The Division also gave notice of its intention to collect costs. The Respondents have a right to request a hearing in this matter.
MA Quik Framing Inc. and Laurance D. Anthone, Respondents - S-03-223-04-TO01 - Summary Order
On January 19, 2005, the Securities Division entered a Summary Order to Cease and Desist against MA Quik Framing Inc. ("MA Quik") and its CEO, Laurence D. Anthone, who operate a land acquisition and development company in Tukwila, Washington. The Division alleged that between at least July and October 2003, MA Quik and Anthone raised approximately $100,000 by offering and selling unregistered promissory notes and profit sharing agreements to at least five Washington residents. The Division further alleged that the Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington, and failed to disclose material facts, including the risks involved in the investment. The Division ordered the Respondents to cease and desist from violating securities registration provisions of the Securities Act of Washington. The Division also gave notice of its intention to impose a fine and to collect costs. The Respondents have a right to request a hearing in this matter.