Orders From Other Years

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Yofast, LP; David Warren a/k/a David Apperson a/k/a Hans W. Schnauber - S-09-449-12-SC01 - Statement of Charges

On December 14, 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Charge Costs, and to Impose a Fine against Yofast, LP and David Warren, a/k/a David Apperson, a/k/a Hans W. Schnauber (“Warren”) (collectively, “Respondents”). The Statement of Charges alleges that Respondents offered and sold limited partnership interests to at least nine Washington residents. The Statement of Charges further alleges that Respondents violated the registration of securities and anti-fraud provisions of the Washington Securities Act (the “Act”), and that Warren violated the Act’s registration of securities broker-dealers and salespersons provision. The Securities Division intends to order the Respondents to cease and desist from violations of the Securities Act of Washington, and gives notice of its intent to impose fines and recover costs. The Respondents have a right to request a hearing on the Statement of Charges.

A Final Order was entered regarding this matter on February 8, 2013.

Glenn Anthony Walker; Varro Seattle LLC - S-12-0990-12-SC01 - Statement of Charges

On December 11, 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Impose Fines and to Charge Costs (Statement of Charges) against Respondents Glenn Anthony Walker (Walker) and Varro Seattle LLC. The Statement of Charges alleges that Walker violated the registration and anti-fraud provisions of the Securities Act of Washington, when he solicited investments in Varro Seattle LLC. The Securities Division intends to order the Respondents to cease and desist from violating the Securities Act of Washington and gives notice of its intent to impose a fine and to charge costs. Respondents each have a right to request a hearing on the Statement of Charges.

A Consent Order as to Glenn Anthony Walker was entered on July 30, 2013.

Shelby Horatio Bell, d/b/a Be’Rio Transports LLC, and Hobo Prince Economic Project - S-12-1000-12-FO01 – Final Order

On December 10, 2012, the Securities Division entered a Final Order against Shelby Bell. The Final Order stated that the Respondent failed to attend a Prehearing Conference on November 5, 2012, and that on November 8, 2012, Administrative Law Judge Steven C. Smith entered an Initial Order of Default that dismissed the Respondent’s appeal. The Final Order ordered the Respondent to cease and desist from any further violations of RCW 21.20.140 and RCW 21.20.010. The Respondent has the right to petition the superior court for judicial review of the order.

A Summary Order was previously entered against Shelby Horatio Bell, d/b/a Be’Rio Transports LLC, and Hobo Prince Economic Project on June 29, 2012.

The Institute For Financial Learning Group of Companies, Inc.; Strategic Metals, Inc., Merendon Mining Corporation, Ltd., Milowe A. Brost; Kristina J. Katayama; Ronald R. Case; Warren L. Bosma; Ward K. Capstick - S-04-124-08-CO01 - Consent Order

On December 3, 2012, the Securities Division entered into a Consent Order with Ward K. Capstick. The Securities Division had previously issued a Statement of Charges, S-04-124-08-SC01, against Mr. Capstick, The Institute For Financial Learning Group of Companies, Inc., Strategic Metals, Inc., Merendon Mining Corporation, Ltd., Milowe A. Brost, and others. The Securities Division had alleged that the Respondent Capstick violated the state securities registration, broker-dealer/salesperson registration and anti-fraud laws in connection with the offer and sale of promissory notes. Without admitting or denying the Securities Division’s allegations, Mr. Capstick agreed to cease and desist from violating the securities registration, broker-dealer/salesperson registration and anti-fraud laws of the state Securities Act. Mr. Capstick waived his right to a hearing and judicial review of the matter.

Blair Smith - S-10-246-12-CO01 - Consent Order

On November 19, 2012, the Securities Division entered into a Consent Order with the Respondent Blair Smith. The Securities Division had previously entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Charge Costs against the Respondent on November 7, 2011. The Securities Division alleged that for over eleven years the Respondent has transacted business as an investment adviser in Washington by providing investment advisory services from its principal place of business in Bellingham, Washington, without being properly registered. The Respondent neither admitted nor denied the allegations, but agreed to cease and desist from violating the investment adviser registration provision of the Securities Act of Washington, and to pay a fine of $1,000 and investigative costs of $3,000. The Respondent waived his right to a hearing and to judicial review of this matter.

A Consent Order was entered regarding this matter on June 25, 2015.

Jonathan Lowry - S-10-442-12-FO02 - Final Order

On November 19, 2012, the Securities Division entered a Final Order against Jonathan Lowry (“Lowry”) The Securities Division had previously entered a Statement of Charges against Lowry and others on May 27, 2011. The Statement of Charges alleged that Lowry offered and sold a promissory note to a Washington couple. The Statement of Charges further alleged that Lowry violated the registration of securities provision of the Securities Act of Washington (the “Act”), the Act’s registration of securities broker-dealers and salespersons provision, and the Act’s anti-fraud provision. The Final Order orders Lowry to cease and desist from violations of the Securities Act of Washington and orders Lowry to pay a fine and to reimburse the Securities Division its investigative costs. Lowry has the right to request judicial review of the Final Order.

Ronald Dean Bennett d/b/a Ron Bennett Commercial Real Estate; Ron & Marilyn Bennett, LLC - S-10-254-12-FO01 - Final Order

On November 19, 2012, the Securities Division entered a Final Order against Ronald Dean Bennett d/b/a Ron Bennett Commercial Real Estate (“Ron Bennett”), and Ron & Marilyn Bennett, LLC (collectively, “Respondents”). The Securities Division previously entered a Statement of Charges against the Respondents on March 7, 2012. The Statement of Charges alleged that, between approximately 1979 and September, 2011, the Respondents offered and sold over $26 million worth of promissory notes to approximately 171 investors, the majority of whom are Washington residents. The Statement of Charges alleged that the Respondents violated the securities registration and anti-fraud provisions of the Securities Act of Washington (the “Act”), and that Ron Bennett violated the Act’s provision requiring registration of securities salespersons and broker-dealers. The Securities Division orders the Respondents to cease and desist from violating the Securities Act of Washington, and orders Ron Bennett to pay a fine of $80,000 and pay investigative costs of $70,000. The Respondents have a right to request judicial review of the Final Order.

Joseph A. Untalan; Steven D. Jackson; Genesis Holdings Group, Inc; Phoenix Development Group, Inc. - S-11-0826-12-SC01 - Statement of Charges

On November 7, 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Impose Fines and to Charge Costs (“Statement of Charges”) against Respondents, Joseph A. Untalan (“Untalan”), Steven D. Jackson (“Jackson”), Genesis Holdings Group, Inc. (“Genesis”) and Phoenix Development Group, Inc. (“Phoenix”). The Securities Division alleged that Respondents violated RCW 21.20.010, RCW 21.20.040 and RCW 21.20.140 by offering and selling approximately $130,000 worth of unregistered securities to four Washington State residents. The Securities Division additionally alleged that Respondents made material misrepresentations and omissions in connection with the offer and sale of Respondents’ securities. The Statement of Charges gives notice of the Securities Division’s intent to enter an Order to Cease and Desist, to impose fines and to collect costs. Respondents have the right to request a hearing on the Statement of Charges.

A Final Order was entered regarding this matter on February 6, 2013.

Dinotech Corporation; Ruby Knighton - S-12-0906-12-SC01 - Statement of Charges

On November 7, 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist and to Impose Fines (“Statement of Charges”) against Respondents, Ruby Knighton (“Knighton”) and Dinotech Corporation (“Dinotech”). The Securities Division alleged that Respondents violated RCW 21.20.010, RCW 21.20.040 and RCW 21.20.140 by offering and selling $20,000 worth of unregistered stock to a Washington investor in connection with an oil and gas scheme. The Securities Division additionally alleged that Respondents made material misrepresentations and omissions in connection with the offer and sale of Respondents’ securities. The Statement of Charges gives notice of the Securities Division’s intent to enter an Order to Cease and Desist and to impose fines. Respondents have the right to request a hearing on the Statement of Charges.

A Final Order was entered on January 30, 2013.

Fantazimo Food, Inc. and Peter E. Gradwohl - S-10-306-12-FO01 - Final Order

On November 7, 2012, the Securities Division made an Entry of Findings of Fact and Conclusions of Law and Final Order to Cease and Desist, to Impose a Fine, and to Charge Costs (“Final Order”) against Respondents, Fantazimo Food, Inc. (“Fantazimo”) and Peter E. Gradwohl . The Final Order alleges that Respondents offered and sold $250,000 worth of Fantazimo convertible promissory notes and warrants to at least six Washington investors. The Final Order alleges that Respondents violated the anti-fraud provision of the Securities Act of Washington. The Final Order orders Respondents to cease and desist from violating the Securities Act of Washington and imposes a fine and charges costs. Respondents each have the right to request judicial review of the Final Order.

UniHost Corporation, Wasantha Weerasekera, and Richmond F. Richardson - S-12-0899-12-CO02 - Consent Order

On November 5, 2012, the Securities Division entered a Consent Order with Respondent, Richmond F. Richardson (“Richardson”). The Securities Division alleged that Richardson offered and sold at least $20,000 worth of common stock in UniHost Corporation to at least two Washington investors. The Securities Division alleged that Richardson violated the registration and anti-fraud provisions of the Securities Act of Washington. Without admitting or denying the Securities Division’s allegations, Richardson agreed to cease and desist from any further violation of the Securities Act. Richardson waived his right to a hearing and to judicial review of the matter.

UniHost Corporation, Wasantha Weerasekera, and Richmond F. Richardson - S-12-0899-12-CO01 - Consent Order

On November 5, 2012, the Securities Division entered a Consent Order with Respondents, UniHost Corporation (“UniHost”) and Wasantha Weerasekera (“Weerasekera”). The Securities Division alleged that Respondents offered and sold at least $20,000 worth of common stock in UniHost to at least two Washington investors. The Securities Division alleged that Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington. Without admitting or denying the Securities Division’s allegations, Respondents agreed to cease and desist from any further violation of the Securities Act. Weerasekera agreed to pay investigative costs of $2,000. Respondents each waived their right to a hearing and to judicial review of the matter.

Cedrick Redula - S-11-0715-12-CO01 - Consent Order

On October 25, 2012, the Securities Division entered into a Consent Order with Cedrick Redula (“Respondent”). The Securities Division previously entered a Statement of Charges against Redula on August 30, 2012. The Statement of Charges alleged that the Respondent raised more than $250,000 from an investor by claiming to be able to generate large returns as part of a revocable living trust. In settling the matter, the Respondent neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act. The Respondent further agreed to reimburse the Securities Division $2,500 for its costs of investigation. The Respondent waived his right to a hearing and to judicial review of the matter.

Joseph L. Woodruff - S-10-062-12-CO01 - Consent Order

On October 25, 2012, the Securities Division entered into a Consent Order with Joseph L. Woodruff (“Woodruff”). The Securities Division previously entered a Statement of Charges against Woodruff on May 25, 2012. The Statement of Charges alleged that the Woodruff raised more than $1,000,000 through the sale of promissory notes to investors in Washington and other states. The Securities Division alleged that when offering and selling the investments, Woodruff violated the registration and anti-fraud provisions of the Securities Act of Washington (“Securities Act”). In settling the matter, Woodruff neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act. Woodruff further agreed to pay a fine of $5,000 and reimburse the Securities Division $2,500 for its costs of investigation. Woodruff waived his right to a hearing and to judicial review of the matter.

Jeffrey N. Funes - S-09-465-12-CO01 - Consent Order

On October 22, 2012, the Securities Division entered a Consent Order with Jeffrey N. Funes (“Respondent”). The Securities Division previously entered a Statement of Charges against the Respondent on June 5, 2012. The Statement of Charges alleged that the Respondent sold shares of stock in two publicly traded companies, Modular Concepts, Inc. and Middle East Oil Corporation. The Statement of Charges alleged that the Respondent violated the anti-fraud provisions of the Securities Act of Washington. In settling the matter, the Respondent neither admitted nor denied the allegations, but agreed to cease and desist from violating the Act. The Respondent further agreed to pay investigative costs of $2,000. The Respondent waived their right to a hearing and to judicial review of the matter.

The Institute For Financial Learning Group of Companies, Inc.; Strategic Metals, Inc., Merendon Mining Corporation, Ltd., Milowe A. Brost; Ward K. Capstick; Kristina J. Katayama; Ronald R. Case; Warren L. Bosma – S-04-124-08-CO03 – Consent Order

On October 22, 2012, the Securities Division entered into a Consent Order with Ronald R. Case. The Securities Division had previously issued a Statement of Charges, S-04-124-08-SC01, against Mr. Case, The Institute For Financial Learning Group of Companies, Inc., Strategic Metals, Inc., Merendon Mining Corporation, Ltd., Milowe A. Brost, and others. The Securities Division had alleged that the Respondent Case violated the state securities registration, broker-dealer/salesperson registration and anti-fraud laws in connection with the offer and sale of promissory notes. Without admitting or denying the Securities Division’s allegations, Mr. Case agreed to cease and desist from violating the securities registration, broker-dealer/salesperson registration and anti-fraud laws of the state Securities Act. Mr. Case waived his right to a hearing and judicial review of the matter.

Thome Financial Management, LLC; Anthony Thome - S-08-392-12-CO01 - Consent Order

On October 22, 2012, the Securities Division entered into a Consent Order with Thome Financial Management, LLC, an investment adviser in Bellevue, Washington, and its President, Anthony Thome (“Respondents”). The Securities Division alleged that the Respondents sold more than $1.2 million worth of mortgage paper securities and violated the Securities Act’s section requiring registration of securities broker-dealers and salespersons. In settling the matter, the Respondents neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act. The Respondents further agreed to pay a fine of $15,000 and reimburse the Securities Division $2,500 for its costs of investigation. The Respondents waived his right to a hearing and to judicial review of the matter.

WA Real Estate Solutions, LLC; Kerwin Burton; Rosalyn Burton-Torres - S-09-466-12-SC01 - Statement of Charges

On October 19, 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Impose Fines and to Charge Costs (“Statement of Charges”) against Kerwin Burton, Rosalyn Burton-Torres, and WA Real Estate Solutions, LLC (collectively “Respondents”). The Statement of Charges alleges that Respondents offered and sold an estimated $170,000 in unregistered promissory note investments to at least five investors in Washington. The Statement of Charges alleges that Respondents also offered a variety of other investments through an offering document, mass emails, and websites. The Statement of Charges further alleges that Respondents offered unregistered securities and violated the anti-fraud provisions of the Securities Act of Washington, and that Respondents Kerwin Burton and Rosalyn Burton-Torres acted as unregistered broker-dealers or securities salespersons. The Securities Division intends to order Respondents to cease and desist from violating the Securities Act of Washington, and gave notice of its intent to impose a fine and charge costs. Respondents have a right to request a hearing on the Statement of Charges.

A Consent Order was entered regarding this matter on April 19, 2013.

Dream Dinners, Inc. - S-08-321-12-CO01 - Consent Order

On October 18, 2012, the Securities Division entered into a consent order with Dream Dinners, Inc. In the consent order, the Securities Division alleged that the Respondent violated the anti-fraud and disclosure document delivery provisions of the state Franchise Act in connection with the offer and sale of franchises to Washington residents. Without admitting or denying the Securities Division’s allegations, Respondent agreed to cease and desist from violating the anti-fraud and disclosure document delivery provisions of the state Franchise Act. Respondent further agreed to reimburse the Securities Division $12,750 for its costs of investigation. Respondent waived its right to a hearing and judicial review of the matter.

Jerome J. Stellick - S-10-185-12-FO01 - Final Order

On October 18, 2012, the Securities Division entered a Final Order to Deny Future Registrations (the “Final Order”) against Jerome J. Stellick (“Stellick”). The Securities Division had previously entered a Statement of Charges and Notice of Intent to Deny Future Registrations against Stellick alleging that Stellick, while registered as a securities salesperson and investment adviser representative of three different firms in Washington, borrowed $326,000 from customers and advisory clients. The Statement of Charges also alleged that Stellick opened an options account for a customer and exercised trading discretion in that account without obtaining the customer’s written consent to do so. The Statement of Charges further alleged that this conduct violated the Securities Act of Washington. The Final Order orders that any securities salesperson or investment adviser representative registrations that Stellick may seek in the future be denied. Stellick has the right to request judicial review of the Final Order.

AAMCO Transmissions, Inc. - S-12-0916-12-CO01 - Consent Order

On October 15, 2012, the Securities Division entered into a Consent Order with AAMCO Transmissions, Inc. (“ATI”). The Securities Division previously alleged in a May 23, 2012, Statement of Charges that ATI violated RCW 19.100.170 by delivering a franchise disclosure document containing at least three omissions of fact to a prospective franchisee. The Consent Order suspends ATI from claiming any exemption to the franchise registration requirements for three years and orders ATI to cease and desist from violations of RCW 19.100.170. ATI neither admitted nor denied the Securities Division’s allegations. ATI waived its right to an administrative hearing and judicial review of the matter.

Fantazimo Food, Inc. and Peter E. Gradwohl - S-10-306-12-SC01 - Statement of Charges

On October 10, 2012, the Securities Division entered a Statement of Charges against Respondents, Fantazimo Food, Inc. (“Fantazimo”) and Peter E. Gradwohl . The Statement of Charges alleges that Respondents offered and sold $250,000 worth of Fantazimo convertible promissory notes and warrants to at least six Washington investors. The Statement of Charges alleges that Respondents violated the anti-fraud provision of the Securities Act of Washington. The Securities Division intends to order the Respondents to cease and desist from violating the Securities Act of Washington and gives notice of its intent to impose a fine and to charge costs. Respondents each have the right to request a hearing on the Statement of Charges.

A Final Order was entered on November 7, 2012.

Peters & Company, Inc. P.S.; Stephen F. Peters - S-12-0977-12-CO01 - Consent Order

On October 9, 2012, the Securities Division entered into a Consent Order with Peters & Company, Inc, P.S. (“Peters & Co”) and Stephen F. Peters (“Peters”) (collectively, “Respondents”). The Consent Order alleged that Respondents violated the Securities Act of Washington by failing to file Peters & Co’s required annual fiscal year end balance sheet and annual amendments to its Form ADV Part 1 and Part 2. Previously, on May 25, 2012, the Securities Division entered a Summary Order, S-12-0977-12-TO01, for the same violation against Respondents suspending Peters & Co’s investment adviser and Peters’s investment adviser representative registrations. Earlier, on August 19, 2011, the Securities Division entered a Statement of Charges, S-11-0722-11-SC01, against Peters & Co for failure to timely file its annual documents. In the Consent Order, the Securities Division vacated the Summary Order, except to the extent the findings and conclusion in that Summary Order were incorporated into the Consent Order. The Respondents affirmed their understanding of the annual filing requirements and agreed to properly disclose the Consent Order on all licensing documents for ten years. Respondents further agreed to pay a fine of $2,000. Respondents waived their right to a hearing and judicial review of the matter.

Willie Louis Jones – S-10-438-12-CO01 – Consent Order

On October 2, 2012, the Securities Division entered into a Consent Order with Willie Louis Jones. The Securities Division previously entered a Statement of Charges against Willie Louis Jones and Eddie Baker (collectively “Respondents”) on November 9, 2011. The Statement of Charges alleged that Respondents solicited Washington residents in King and Pierce counties to invest in a variety of investment opportunities involving real estate ventures. The Statement of Charges also alleged that Jones procured over $500,000 of investors’ funds. The Statement of Charges further alleged that Respondents offered and/or sold unregistered securities, acted as unregistered securities salespersons, and made misrepresentations and/or omissions to Washington residents regarding investment opportunities. Without admitting or denying the Securities Division’s allegations, Jones agreed to cease and desist from violating the Securities Act of Washington, to pay a fine of $1,000, and to pay investigative costs of $5,000. Jones waived his right to a hearing in this matter and judicial review of the Consent Order.

William Forrest Knoppi aka Bill Knoppi - S-09-467-12-FO01 - Final Order

On October 2, 2012, the Securities Division entered a Final Order against Respondent William Forrest Knoppi aka Bill Knoppi. The Securities Division previously entered a Statement of Charges against Respondent William Knoppi on June 26, 2012. The Statement of Charges alleged that William Knoppi offered and sold unregistered securities in the form of promissory notes while acting as an unregistered securities salesperson or broker-dealer. The Statement of Charges further alleged that William Knoppi violated the anti-fraud provision of the Securities Act of Washington in connection with the sale of the notes. The Final Order orders Respondent William Knoppi to cease and desist from violating the Act and orders that Knoppi pay a fine of $30,000 and pay investigative costs of $7,500. Respondent Knoppi has the right to request judicial review of the Final Order.

Jerome J. Stellick – S-10-185-12-SC01 – Statement of Charges

On September 21, 2012, the Securities Division entered Statement of Charges and Notice of Intent to Enter Order to Deny Future Registrations (the “Statement of Charges”) against Jerome J. Stellick (“Stellick”). The Statement of Charges alleges that Stellick, while registered as a securities salesperson and investment adviser representative of three different firms in Washington, borrowed $326,000 from customers and advisory clients. The Statement of Charges also alleges that Stellick opened an options account for a customer and exercised trading discretion in that account without obtaining the customer’s written consent to do so. The Statement of Charges alleges that this conduct violated the Securities Act of Washington and gives notice of the Securities Division’s intent to deny any securities salesperson or investment adviser representative registrations Stellick may seek in the future. Stellick has the right to request a hearing on the Statement of Charges.

ProEquities, Inc. - S-12-0987-12-CO01 - Consent Order

On September 20, 2012, the Securities Division entered into a Consent Order with ProEquities as part of a multi-state settlement. The Consent Order alleges that ProEquities violated the Washington State Securities Act’s (the “Act”) provision requiring registration of securities broker-dealers and salespersons. Without admitting or denying the Division’s allegations, ProEquities agreed to cease and desist from violating the Act and to pay a fine of $8,207.55. ProEquities waived its right to a hearing and judicial review of the matter.

Warren F. Bosma – S-04-124-08-CO02 – Consent Order

On September 19, 2012, the Securities Division entered into a Consent Order with Warren L. Bosma. The Securities Division had previously issued a Statement of Charges, S-04-124-08-SC01, against Mr. Bosma, The Institute For Financial Learning Group of Companies, Inc., Strategic Metals, Inc., Merendon Mining Corporation, Ltd., Milowe A. Brost, and others. The Securities Division had alleged that the Respondent Bosma violated the state securities registration, broker-dealer/salesperson registration and anti-fraud laws in connection with the offer and sale of promissory notes. Without admitting or denying the Securities Division’s allegations, Mr. Bosma agreed to cease and desist from violating the securities registration, broker-dealer/salesperson registration and anti-fraud laws of the state Securities Act. Mr. Bosma waived his right to a hearing and judicial review of the matter.

Seth Goldberger - S-11-0765-12-FO02 - Final Order

On September 18, 2012, the Securities Division entered a Final Order against Respondent, Seth Goldberger (“Goldberger”). The Final Order found that during 2010, Goldberger offered and sold $35,000 worth of leveraged precious metals investments to at least one Washington investor. The Final Order found that Goldberger violated the Commodity Transactions Act and ordered Goldberger to cease and desist from any further violations. Goldberger has the right to request judicial review of the Final Order.

Tracy Coats - S-11-0814-12-CO02 - Consent Order

On September 13, 2012, the Securities Division entered into a Consent Order with Tracy Coats. The Securities Division previously entered a Statement of Charges against Vend-A-Future of Seattle, Ltd., Jason Nelson, and Tracy Coats (collectively “Respondents”). The Statement of Charges alleged that Respondents offered and sold vending machine business opportunities to Washington residents in violation of the Business Opportunity Fraud Act. The Statement of Charges also alleged that Respondents violated the registration, disclosure document, and unlawful acts sections of the Business Opportunity Fraud Act. Without admitting or denying the Securities Division’s allegations, Coats agreed to cease and desist from violating RCW 19.110.050, RCW 19.110.070, and RCW 19.110.120. Coats agreed to pay investigative costs of $1,000. Coats waived his right to a hearing and judicial review of this matter.

Regions Investment Management, Inc. (f/k/a Morgan Asset Management, Inc.); Morgan Keegan & Company, Inc. - S-11-0710-11-CO01 - Consent Order

On September 13, 2012, the Securities Division entered into a Consent Order with Regions Investment Management, Inc. (f/k/a Morgan Asset Management, Inc.) and Morgan Keegan & Company, Inc. (“Respondents”), in order to settle allegations regarding the Respondents’ sale of seven proprietary mutual funds. These funds lost approximately $1.5 billion from March 31, 2007 to March 31, 2008. The Securities Division alleges that the Respondents engaged in dishonest or unethical practices by making material misrepresentations and omissions in the marketing materials and regulatory filings regarding the funds. The Securities Division further alleges that the Respondents failed to make suitable recommendations and adequately supervise their salespersons in the sale of the funds. The Respondents neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act of Washington. The Respondents agreed to pay $26,811 as a monetary penalty. The Respondents waived their right to a hearing and to judicial review of this matter.

Vend-A-Future of Seattle, Ltd., Jason Nelson - S-11-0814-12-CO01 - Consent Order

On September 13, 2012, the Securities Division entered into a Consent Order with Vend-A-Future of Seattle, Ltd. and Jason Nelson. The Securities Division previously entered a Statement of Charges against Vend-A-Future of Seattle, Ltd., Jason Nelson, and Tracy Coats (collectively “Respondents”). The Statement of Charges alleged that Respondents offered and sold vending machine business opportunities to Washington residents in violation of the Business Opportunity Fraud Act. The Statement of Charges also alleged that Respondents violated the registration, disclosure document, and unlawful acts sections of the Business Opportunity Fraud Act. Without admitting or denying the Securities Division’s allegations, Vend-A-Future of Seattle, Ltd. and Jason Nelson agreed to cease and desist from violating RCW 19.110.050, RCW 19.110.070, and RCW 19.110.120. Vend-A-Future of Seattle, Ltd. and Jason Nelson agreed to pay investigative costs of $1,000. Vend-A-Future of Seattle, Ltd. and Jason Nelson waived their right to a hearing and judicial review of this matter.

Cedrick Redula - S-11-0715-12-SC01 - Statement of Charges

On August 30, 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist, Impose a Fine, and Recover Costs against Cedrick Redula (“Respondent”) of Vancouver, Washington. The Statement of Charges alleges that the Respondent raised more than $250,000 from an investor by claiming to be able to generate large returns as part of a revocable living trust. The Securities Division intends to order the Respondent to cease and desist from violating the Securities Act of Washington, and gives notice of its intent to impose a fine and recover costs. The Respondent has a right to request a hearing on the Statement of Charges.

A Consent Order was entered regarding this matter on October 25, 2012.

Radix Marine, Inc.; Kathleen R. Bright; Brad M. Goodspeed - S-07-169-11-SC01 - Statement of Charges

On August 21, 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Recover Costs against Radix Marine, Inc., Kathleen R. Bright, and Brad M. Goodspeed (collectively “Respondents”). Radix Marine, Inc., located in Yakima, Washington, primarily develops, manufactures, and/or markets marine vessels. The Division alleges that the Respondents raised a total of $244,900 by selling convertible promissory notes to at least 14 investors, including at least 7 Washington residents. The Division further alleges that the Respondents offered and sold unregistered securities and violated the anti-fraud provision of the Securities Act of Washington. The Securities Division ordered the Respondents to cease and desist from violating the Securities Act of Washington, and gave notice of its intent to collect fines and charge costs. The Respondents have a right to request a hearing on the Statement of Charges.

A Consent Order was entered regarding this matter on May 15, 2014.

A Consent Order as to Brad M. Goodspeed was entered regarding this matter on May 07, 2014.

A Consent Order as to Kathleen R. Bright was entered on March 28, 2013.

David Waldemar Asplund, Jr. - S-09-343-12-FO01 - Final Order

On August 16, 2012, the Securities Division entered a Final Order against David Waldemar Asplund, Jr. ("Asplund"). The Securities Division previously entered a Statement of Charges against Asplund on October 6, 2011. The Statement of Charges alleged that Asplund engaged in dishonest or unethical business practices by making unsuitable recommendations of Class C shares of mutual funds ("C shares"), typically a short-term investment, to clients with long-term investment objectives. The Statement of Charges further alleged that Asplund made material misrepresentations of fact or omitted to state material facts in selling the C shares to clients. In the Final Order the Securities Division orders Asplund to cease and desist from violating the Securities Act of Washington and orders Asplund to pay a fine of $20,000. Asplund has the right to request judicial review of the Final Order.

J.K. Holdings I, Inc.; Hillstrom Cabinets, Inc.; Jonathan Kniss; Laura Kniss - S-10-401-12-SC01 - Statement of Charges

On August 16, 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Impose Fines, and to Charge Costs (the “Statement of Charges”) against J.K. Holdings I, Inc. (“JKH”), Hillstrom Cabinets, Inc. (“HCI”), and Jonathan and Laura Kniss (collectively, “Respondents”). The Statement of Charges alleges that Jonathan Kniss and JKH offered and sold securities to enable the purchase of HCI by Jonathan Kniss and JKH and that Respondents offered and sold securities several years later to keep HCI open as it struggled under Jonathan Kniss’s leadership. The Statement of Charges further alleges that, in doing so, Respondents violated the Securities Act of Washington’s securities registration and anti-fraud provisions and that Jonathan and Laura Kniss each violated the Act’s provision requiring registration of securities salespersons and broker-dealers. The Securities Division intends to order the Respondents to cease and desist from violating the Securities Act of Washington and gives notice of its intent to impose fines and recover costs. The Respondents have the right to request a hearing on the Statement of Charges.

A Consent Order as to Jonathan Kniss was entered on June 10, 2013.

E*Trade Securities LLC - S-08-365-12-CO01 - Consent Order

On August 15, 2012, the Securities Division entered into a Consent Order with E*Trade Securities LLC ("Respondent"), in order to settle the allegation that Respondent failed to reasonably supervise its salespersons in the marketing of auction rate securities ("ARS") to its customers. Respondent neither admitted nor denied the allegation, but agreed to cease and desist from violating RCW 21.20.110(1)(j). Respondent agreed to offer to purchase at par ARS that since February 13, 2008 have not been auctioning from individual investors who purchased those ARS from Respondent on or before February 13, 2008. Respondent agreed to pay a fine of $167,534.77. Respondent waived its right to a hearing and to judicial review of this matter.

Financial Services International Corp.; Candace Jean Lee – S-09-343-12-CO01 – Consent Order

On August 1, 2012, the Securities Division entered into a Consent Order with Financial Services International Corp. (“FSIC”) and Candace Jean Lee (“Lee”). The Securities Division had previously issued a Statement of Charges, S-09-343-10-SC01, against FSIC and Lee. The Statement of Charges alleged that by failing to enter into written advisory agreements, failing to provide disclosure documents, and failing to provide a complete description of the share class option and fees of mutual funds, FSIC and Lee engaged in a practice which would operate as a deceit. The Statement of Charges further alleged that FSIC and Lee failed to reasonably supervise FSIC representatives in the offer and sale of mutual funds. Without admitting or denying the Securities Division’s allegations, FSIC and Lee agreed to cease and desist from violating RCW 21.20.010 and RCW 21.20.020. FSIC agreed to pay a fine of $25,000 and investigative costs of $15,000. Lee is suspended from acting in any principal or supervisory capacity with any firm for a period of twelve months and will have to retake and pass the examination for registration as a General Securities Principal. FSIC and Lee waived their rights to a hearing and judicial review of this matter.

UVEST Financial Services Group, Inc. - S-12-0986-12-CO01 - Consent Order

On July 26, 2012, the Securities Division entered into a Consent Order with UVEST Financial Services Group, Inc. ("Respondent"). In the Consent Order, the Securities Division alleged that Respondent violated the securities broker-dealer/salesperson registration provision of the Securities Act of Washington. Without admitting or denying the Securities Division's conclusions of law, Respondent agreed to cease and desist from future violations of the Securities Act of Washington. Respondent agreed to pay a fine of $14,150.94 to the Securities Division. Respondent waived its right to a hearing and judicial review of the matter.

Premium Equities, LLC and Next Innovations, Inc. - S-10-062-12-FO01 - Final Order

On July 26, 2012, the Securities Division entered a Final Order against Premium Equities, LLC and Next Innovations, Inc. (“Respondents”). The Securities Division previously entered a Statement of Charges against the Respondents on May 25, 2012. The Statement of Charges alleged that the Respondents raised more than $1,000,000 through the sale of promissory notes to investors in Washington and other states. The Securities Division alleged that when offering and selling the investments, the Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington (“Securities Act”). The Securities Division orders the Respondents to cease and desist from violating the Securities Act of Washington. The Respondents have a right to request judicial review of the Final Order.

Brian H. Brunhaver; Stacey L. Brunhaver; Brunhaver Financial Services, LLC - S-11-0656-12-FO01 - Final Order

On July 25, 2012, the Securities Division entered a Final Order to Cease and Desist, to Impose Fines, and to Charge Costs and Denying Investment Adviser Registration and Future Registrations (the “Final Order”) against Brian H. Brunhaver, Stacey L. Brunhaver, and Brunhaver Financial Services, LLC (“BFS”) (collectively, “Respondents”). The Securities Division entered a Summary Order and Statement of Charges against Respondents (the “Summary Order”) on June 26, 2012 that alleged that Brian H. Brunhaver, while employed as an investment adviser representative and securities salesperson of LPL Financial Services and thereafter, committed multiple violations of the Securities Act of Washington including making misstatements of material fact in connection with the offer or sale of securities, making unsuitable recommendations, making false or misleading statements to the Securities Division, and dishonest or unethical business practices. The Summary Order further alleged that Respondents had acted as an investment adviser or as investment adviser representatives while not registered to do so. The Final Order orders the Respondents to cease and desist from violating the Securities Act of Washington, denies BFS’s pending investment adviser registration, any investment adviser registration BFS may file in the future, as well as any investment adviser, investment adviser representative, and securities salesperson registrations Brian H. Brunhaver or Stacey L. Brunhaver may file in the future. The Final Order also orders Brian H. Brunhaver to pay a fine and orders the Respondents to reimburse the Securities Division its investigative costs. The Respondents each have the right to request judicial review of the Final Order.

Bankers Life and Casualty Company; BLC Financial Services, Inc. - S-12-0985-12-CO01 - Consent Order

On July 23, 2012, the Securities Division entered into a consent order with Bankers Life and Casualty Company and BLC Financial Services, Inc. (collectively "Bankers"). The Consent Order was the result of a multistate investigation led by the Office of Securities of the Maine Department of Professional & Financial Regulation. In the Consent Order, the Securities Division alleged that Bankers acted as an unregistered broker-dealer and investment adviser in the State of Washington. The Securities Division also alleged that Bankers employed unregistered securities salespeople and investment adviser representatives in the State of Washington. According to the terms of the multistate settlement, Bankers is to pay $9.9 million in fines, of which Washington State is to receive $323,072.90. Bankers is to pay past licensing and registration fees of $260,000 of which Washington State is to receive $5,000. Bankers is to also pay $106,000 to fund state audits to ensure compliance with the terms of the consent order of which Washington State is to receive $2,000. The consent order also requires Bankers to cease and desist from violating the Washington State Securities Act, and mandates prophylactic measures to ensure compliance. Bankers admitted the findings of fact, but neither admitted nor denied the conclusions of law. Bankers waived its rights to a hearing and judicial review of the matter.

A Consent Order was entered regarding this matter on October 8, 2021.

JFB Capital LLC; Jason F. Bond - S-12-0958-12-CO01 – Consent Order

On July 16, 2012, the Securities Division entered into a Consent Order with JFB Capital LLC and Jason F. Bond (“Respondents”). The Consent Order alleged that the Respondents violated the Securities Act of Washington by failing to maintain JFB Capital LLC’s minimum financial requirements. Previously, on May 1, 2012, the Securities Division entered a Summary Order for the same violation against Respondents suspending JFB Capital LLC’s investment adviser and Jason F. Bond’s investment adviser representative registrations. In the Consent Order, the Securities Division vacated the Summary Order, except to the extent the findings and conclusion in that Summary Order were incorporated into the Consent Order. The Respondents agreed to maintain JFB Capital LLC’s minimum net worth, submit monthly balance sheets, and properly disclose the Consent Order on all licensing documents for ten years. Respondents further agreed to reimburse the Securities Division $500 for its cost of investigation. Respondents waived their right to a hearing and judicial review of the matter.

1-800-Boardup, Inc. - S-12-0969-12-CO01 - Consent Order

On July 16, 2012, the Securities Division entered into a consent order with 1-800-BoardUp, Inc. of Fenton, Missouri. In the consent order, the Securities Division alleged that the Respondent violated the registration and disclosure document provisions of the state Franchise Act in connection with the offer and sale of franchises to Washington residents. Without admitting or denying the Securities Division’s allegations, Respondent agreed to cease and desist from violating the registration and disclosure document provisions of the state Franchise Act. Respondent further agreed to reimburse the Securities Division $3,625 for its costs of investigation. Respondent waived its right to a hearing and judicial review of the matter.

Leschi Equity Partners, LLC and David A. Cochran - S-09-282-12-FO01 - Final Order

On July 3, 2012, the Securities Division entered a Final Order against Respondents, Leschi Equity Partners, LLC (“Leschi”) and David A. Cochran (“Cochran”). The Securities Division previously entered a Statement of Charges against Respondents on May 9, 2012. The Statement of Charges alleged that Leschi was formed to purchase a waterfront apartment complex in Seattle, Washington and to convert the apartments into condominium units, but the apartments were never acquired. The Securities Division alleged that Respondents each violated the registration and anti-fraud provisions of the Securities Act of Washington (“Act”). The Final Order orders Respondents to cease and desist from violating the Act and orders that Cochran pay a fine of $5,000 and pay investigative costs of $2,500. Respondents each have the right to request judicial review of the Final Order.

Hydro Alternative Energy, Inc; Scott Ovian, Jonathan Burke; Mark Vincent Antonucci - S-11-0785-12-SC01 - Statement of Charges

On June 29, 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Impose Fines and to Charge Costs against Hydro Alternative Energy, Inc., Scott Ovian, Jonathan Burke, and Mark Vincent Antonucci (collectively "Respondents"). The Statement of Charges alleges that Hydro Alternative Energy, Inc. and its agents made unsolicited telephone calls to offer unregistered investments in HAE stock to residents of multiple states and received over $8,500,000 of investor funds, over $111,000 of which came from Washington investors. The Statement of Charges also alleges that Respondents Ovian and Burke acted as unregistered broker-dealers or securities salespersons. The Statement of Charges further alleges that the offer and sale of securities by Respondents violated the anti-fraud provision of the Securities Act of Washington. The Securities Division ordered Respondents to cease and desist from violating the securities registration, broker-dealer and/or securities salesperson registration, and anti-fraud provisions of the Securities Act of Washington. The Securities Division gave notice of its intent to collect fines and charge costs. Respondents have a right to request a hearing on the Statement of Charges.

A Consent Order was entered regarding this matter on February 20, 2015.

Shelby Horatio Bell, d/b/a Be’Rio Transports LLC, and Hobo Prince Economic Project - S-12-1000-12-TO01 - Summary Order

On June 29, 2012, the Securities Division entered a Summary Order to Cease and Desist against Respondent Shelby Horatio Bell (Bell). The Summary Order alleges that Bell violated the registration and anti-fraud provisions of the Securities Act of Washington, when he publicly solicited his Reciprocity Insurance securities offering and his Intellectual Property Investment Portfolio Bid Package securities offering. Respondent Shelby Horatio Bell has the right to request a hearing on the Summary Order.

A Final Order was entered regarding this matter on December 10, 2012.

Sterling Precious Metals LLC and Ryan Zofay - S-11-0765-12-FO01 - Final Order

On June 28, 2012, the Securities Division entered a Final Order against Sterling Precious Metals LLC (“Sterling”) and Ryan Zofay (“Zofay”). The Final Order found that Sterling has its principal place of business in Boca Raton, Florida. The Final Order found that during 2010, Sterling and Zofay offered and sold more than $110,000 worth of leveraged precious metals investments to at least two Washington investors. The Final Order found that Sterling and Zofay each violated the Commodity Transactions Act and ordered Sterling and Zofay to each cease and desist from any further violations. Sterling and Zofay each have the right to request judicial review of the Final Order.

BB&A Properties VIII, LLC and Francis Bertholic, Jr. - S-10-375-12-FO01 - Final Order

On June 28, 2012, the Securities Division entered a Final Order against BB&A Properties VIII, LLC (“BB&A”) and Francis Bertholic, Jr. (“Bertholic”). The Final Order found that BB&A and Bertholic offered and sold approximately $965,000 worth of investments to at least thirteen Washington investors. The Final Order found that BB&A and Bertholic each violated the registration and anti-fraud provisions of the Securities Act of Washington. The Final Order ordered BB&A and Bertholic to cease and desist from violating the Securities Act of Washington and revoked exemptions, imposed a fine, and charged investigative costs against Bertholic. BB&A and Bertholic each have the right to request judicial review of the Final Order.

Josef Erick Ewert - S-10-443-12-FO01 - Final Order

On June 28, 2012, the Securities Division entered a Final Order against Josef Erick Ewert (“Ewert”). The Securities Division previously entered a Statement of Charges against Ewert on May 22, 2012. The Statement of Charges alleged that between 2009 and 2010, Ewert offered and sold investments in a digital advertising screen business to a Texas investor for a total of approximately $32,000. The Statement of Charges also alleged that Ewert offered and/or sold investments to produce and market a stethoscope sterilizer device to at least two Washington investors with a total investment of $8,500. The Statement of Charges further alleged that Ewert violated the registration and anti-fraud provisions of the Securities Act of Washington (“Act”). The Final Order orders Ewert to cease and desist from violating the Act and orders that Ewert pay a fine of $20,000 and pay investigative costs of $2,500. Ewert has the right to request judicial review of the Final Order.

Annette Blanchard - S-12-0927-12-SC01 - Statement of Charges

On June 27, 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist and Impose Fines (“Statement of Charges”) against Annette Blanchard (“Blanchard”), a Washington resident. The Statement of Charges alleges that Blanchard took $2,100 from a Washington State resident on the promise that Blanchard would deliver two million Iraqi Dinar and that Blanchard failed to deliver the foreign currency. The Statement of Charges further alleges that Blanchard violated the prohibition on commodity transactions section of the Commodity Transaction Act of Washington by selling a commodity contract that was not exempt under RCW 21.30.030 or RCW 21.30.040. The Statement of Charges further alleges that Blanchard violated the commodity merchant registration and anti-fraud sections of the Act.

A Consent Order was entered regarding this matter on June 4, 2014.

TNK Mortgage Service, LLC, Michael Roy Thacker a/k/a Mike Thacker and William Forrest Knoppi a/k/a Bill Knoppi - S-09-467-10-SC01 - Statement of Charges

On June 26, 2012, the Securities Division entered a Statement of Charges against Respondents, TNK Mortgage Service, LLC, Michael Roy Thacker a/k/a Mike Thacker and William Forrest Knoppi (Knoppi) a/k/a Bill Knoppi. The Securities Division alleged that Respondents each represented to investors that they could invest in promissory notes that would be secured by interests in real property. The Securities Division alleged that in 2007, Respondents offered and sold more than $700,000 of promissory note investments to three Washington residents. The Securities Division alleged that in the offer and sale of the promissory note investments, Respondents each violated the anti-fraud provision of the Securities Act of Washington by misrepresenting or failing to disclose material information to the investors. The Securities Division also alleged that Respondents each violated the registration provisions of the Securities Act and failed to register as broker-dealers or securities salespersons. The Securities Division is seeking fines and costs against Respondents. Respondents each have the right to request a hearing on the Statement of Charges.

A Consent Order was entered regarding this matter on July 30, 2013.

Brian H Brunhaver; Stacey L Brunhaver; Brunhaver Financial Services, LLC - S-11-0656-12-TO01 - Summary Order

On June 26, 2012, the Securities Division entered a Summary Order to Cease and Desist from Violating the Securities Act of Washington and Denying Registration and Statement of Charges and Notice of Intent to Deny Future Registrations, to Impose Fines, and to Charge Costs (the "Order") against Brian H. Brunhaver, Stacey L. Brunhaver, and Brunhaver Financial Services, LLC ("BFS") (collectively, the "Respondents"). The Order alleges that Brian H. Brunhaver, while employed as an investment adviser representative and securities salesperson of LPL Financial Services and thereafter, committed multiple violations of the Securities Act of Washington including making misstatements of material fact in connection with the offer or sale of securities, making unsuitable recommendations, making false or misleading statements to the Securities Division, and dishonest or unethical business practices. The order further alleges that Respondents have acted as an investment adviser or as investment adviser representatives while not registered to do so. The Order orders Respondents to cease and desist from violating the Securities Act of Washington, denies BFS's pending investment adviser registration, and gives notice of the Securities Division's intent to deny any investment adviser registration BFS may file in the future as well as any investment adviser, investment adviser representative, and securities salesperson registrations Brian H. Brunhaver or Stacey L. Brunhaver may file in the future. The Order also gives notice of the Securities Division's intent to impose a fine and to charge investigative costs. The Respondents each have the right to request a hearing on the Order.

A Final Order was issued regarding this matter on July 25, 2012.

Gary R. Moberg - S-08-036-11-CO01 - Consent Order

On June 22, 2012, the Securities Division entered into a consent order with Gary R. Moberg of Mt. Vernon, Washington. In the consent order, the Securities Division alleged that Respondent Moberg violated state securities and broker-dealer/salesperson registration and anti-fraud laws in connection with the offer and sale of a “private loan program” and a “silent joint venture partner” investment. Respondent Moberg agreed and was ordered to cease and desist from future violations of the Securities Act. Respondent Moberg waived his right to a hearing and judicial review of the matter.

Silvino Patulot III; Insource Jobs, Inc. - S-06-183-12-FO02 - Final Order

On June 22, 2012, the Securities Division entered a Final Order against Respondents, Silvino Patulot III and Insource Jobs, Inc. A Final Order was previously issued on June 5, 2012 against Petelo David Tuiasosopo, Strategic Business Development, LLC and Educate Enterprises Services, LLC in the same matter. The Securities Division previously entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist against Respondents on April 26, 2012. The Statement of Charges alleged that Respondents sold unregistered franchises of a purported mortgage origination business. The Statement of Charges also alleged the Respondents violated the registration, offering circular and anti-fraud provisions of the Act. The Final Order orders Respondents to cease and desist from violating the Act. Respondents each have the right to petition the superior court for judicial review of the order.

Jason West Enterprises, Inc., doing business as Westside Pizza; Jason West - S-12-0956-12-CO01 - Consent Order

On June 19, 2012, the Securities Division entered into a Consent Order with Jason West and Jason West Enterprises, Inc. ("Respondents"). In the Consent Order, the Division alleged that Respondents sold franchises in violation of the registration and offering circular delivery provisions of the Franchise Investment Protection Act. Without admitting or denying the Securities Division's allegations, Respondents agreed to cease and desist from violating the registration and offering circular delivery provisions of the act. Respondents waived their right to a hearing and judicial review of the matter.

RMG Rehabilitation Management Group Limited Partnership d/b/a Osteoarthritis Centers of America and RMG Holdings, Inc. f/k/a Rehabilitation Management Group, Inc. - S-12-0964-12-CO01 - Consent Order

On June 19, 2012, the Securities Division entered into a consent order with RMG Rehabilitation Management Group, Limited Partnership d/b/a Osteoarthritis Centers of America and RMG Holdings, Inc., f/k/a Rehabilitation Management Group, Inc. In the consent order, the Securities Division alleged that the Respondents violated the registration and disclosure document provisions of the state Franchise Act in connection with the offer and sale of franchises to Washington residents. Without admitting or denying the Securities Division’s allegations, Respondents agreed to cease and desist from violating the registration and disclosure document provisions of the state Franchise Act. Respondents further agreed to reimburse the Securities Division $4,875 for its costs of investigation. Respondents waived their right to a hearing and judicial review of the matter.

Mike Campa - S-02-380-12-CO02 - Consent Order

On June 11, 2012, the Securities Division entered into a Consent Order with Mike Campa ("Campa"). The Securities Division previously entered a Summary Order against Campa on January 22, 2003. The Summary Order alleged that Campa, a Senior Account Executive at Universal Energy Solutions, Inc., offered oil and gas investments in violation of the registration and anti-fraud provision of the Securities Act of Washington. In settling the matter, Campa neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act of Washington. Campa waived his rights to a hearing and to judicial review of the matter.

Better World Materials Inc. and Dalyn S. Judd - S-11-004-12-CO01 - Consent Order

On June 5, 2012, the Securities Division entered into a Consent Order with Better World Materials Inc. and Dalyn S. Judd (“Respondents”). Respondents neither admitted nor denied the Findings of Fact and Conclusions of Law in the Consent Order. The Consent Order alleged that Respondents solicited approximately 400 investors to purchase approximately $1,475,000 worth of common stock in Better World Materials Inc., a company that was to produce recycled building materials. The Consent Order further alleged that Respondents had offered and sold unregistered securities and made misrepresentations or omissions of material fact about the stock to investors. The Securities Division ordered Respondents to pay a fine of $7,500 and to pay investigative costs of $2,500. Respondents each have the right to request judicial review of the Consent Order.

Jeffrey N. Funes and Abdulkadir H. Al-nakib - S-09-465-12-SC01 - Statement of Charges

On June 5, 2012, the Securities Division entered a Statement of Charges against Jeffrey N. Funes (“Funes”) and Abdulkadir H. Al-nakib (“Alnakib”) (collectively, the “Respondents”). The Statement of Charges alleges that the Respondents sold shares of stock in two publicly traded companies, Modular Concepts, Inc. and Middle East Oil Corporation and violated the anti-fraud provisions of the Securities Act of Washington. The Securities Division intends to order the Respondents to cease and desist from violating the Securities Act of Washington, and gives notice of its intent to impose a fine and charge costs. The Respondents have a right to request a hearing on the Statement of Charges.

A Consent Order as to Jeffrey N. Funes was entered on October 22, 2012.

Jocor Enterprises, LLC doing business as Volcano Fine Electronic Cigarettes - S-12-0954-12-CO01 – Consent Order

On June 5, 2012, the Securities Division entered into a consent order with Respondent Jocor Enterprises, LLC doing business as Volcano Fine Electronic Cigarettes, a Hawaii limited liability company. The Securities Division had previously issued a Statement of Charges, S-12-0954-12-SC01, against the Respondent and alleged that the Respondent violated the registration and disclosure document provisions of the state Franchise Act in connection with the offer and sale of a franchise to a Washington State resident. Without admitting or denying the Securities Division’s allegations, Respondent Jocor Enterprises, LLC agreed to cease and desist from violating the registration and disclosure document provisions of the state Franchise Act. Respondent further agreed to reimburse the Securities Division $4,500 for its costs of investigation. Respondent waived its right to a hearing and judicial review of the matter.

Mark Trotter, Nicholas Franklyn Yates, FHV Holdings Corp., formerly known as YoNaturals, Inc. - S-12-0911-12-CO01 - Consent Order

On May 30, 2012, the Securities Division entered into a Consent Order with Nicholas Yates, Mark Trotter, and FHV Holdings Corp., formerly known as YoNaturals, Inc. (“Respondents”). In the Consent Order, the Division alleged that Respondents sold an unregistered vending machine business opportunity in violation of the Business Opportunity Fraud Act. The Division also alleged that Respondents failed to deliver disclosure document to purchasers. Without admitting or denying the Securities Division’s allegations, Respondents agreed to cease and desist from violating the registration, disclosure document, and anti-fraud provisions of the act. Respondents waived their right to a hearing and judicial review of the matter.

Fresh Healthy Vending, LLC; Jolly Backer - S-11-0712-12-CO01 - Consent Order

On May 30, 2012, the Securities Division entered into a Consent Order with Jolly Backer and Fresh Healthy Vending, LLC (“Respondents”). In the Consent Order, the Division alleged that Respondents sold franchises in violation of the Franchise Investment Protection Act. The Division also alleged that Respondents delivered a deficient disclosure document to purchasers and made material misrepresentations and omissions to purchasers. Without admitting or denying the Securities Division’s allegations, Respondents agreed to cease and desist from violating disclosure document and anti-fraud provisions of the act. Respondents waived their right to a hearing and judicial review of the matter.

Sterling Precious Metals LLC, Ryan Zofay, and Seth Goldberger - S-11-0765-12-SC01 - Statement of Charges

On May 29, 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist (“Statement of Charges”) against Respondents, Sterling Precious Metals LLC (“Sterling”), Ryan Zofay, and Seth Goldberger. The Statement of Charges alleges that Sterling has its principal place of business in Boca Raton, Florida. The Statement of Charges alleges that during 2010, Respondents offered and sold more than $110,000 worth of leveraged precious metals investments to at least two Washington investors. The Statement of Charges alleges that Respondents each violated the Commodity Transactions Act and gives notice of the Securities Division’s intent to order Respondents to cease and desist from any further violations of the Act. Respondents each have the right to request a hearing on the Statement of Charges.

A Final Order was entered on September 18, 2012, as to Seth Goldberger.

A Final Order was entered on June 28, 2012, as to Sterling Precious Metals LLC and Ryan Zofay.

BB&A Properties VIII, LLC; Francis Bertholic, Jr.; and Marcia J. Martin - S-10-375-11-SC01 - Statement of Charges

On May 29, 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist, to Revoke Exemptions, to Impose a Fine, and to Charge Costs (“Statement of Charges”) against Respondents, BB&A Properties VIII, LLC; Francis Bertholic, Jr.; and Marcia J. Martin. The Statement of Charges alleged that Respondents offered and sold approximately $965,000 worth of promissory note investments to at least thirteen Washington investors. The Statement of Charges alleged that Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington. The Securities Division gave notice of its intent to order Respondents to cease and desist from violating the Securities Act of Washington, to revoke exemptions, to impose a fine, and to charge investigative costs. Respondents each have the right to request a hearing on the Statement of Charges.

A Final Order as to BB&A Properties VIII, LLC and Francis Bertholic, Jr., was entered on June 28, 2012.

Joseph L. Woodruff; Premium Equities, LLC; and Next Innovations, Inc. - S-10-062-11-SC01 - Statement of Charges

On May 25 , 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist, Impose a Fine, and Recover Costs against Joseph L. Woodruff; Premium Equities, LLC; and Next Innovations, Inc. (collectively, “Respondents”). The Statement of Charges alleges that the Respondents raised more than $1,000,000 through the sale of promissory notes to investors in Washington and other states. The Securities Division intends to order the Respondents to cease and desist from violating the Securities Act of Washington, and gives notice of its intent to impose a fine and recover costs. The Respondents have a right to request a hearing on the Statement of Charges.

A Consent Order on Joseph L. Woodruff was entered on October 25, 2012.

A Final Order was entered regarding this matter on July 26, 2012.

Peters & Company, INC, P.S.; Stephen F. Peters - S-12-0977-12-TO01 - Summary Order

On May 25, 2012, the Securities Division entered a Summary Order to Suspend Investment Adviser and Investment Adviser Representative Registrations and Notice of Intent to Revoke Investment Adviser and Investment Adviser Representative Registrations and to Impose Fines (“Summary Order”) against Respondents Peters & Company, INC, P.S. (“Peters & Co”) and Stephen F. Peters (“Peters”). The Summary Order alleges that Respondents violated the Securities Act of Washington by failing to file Peters & Co’s required annual fiscal year end balance sheet and annual amendments to its Form ADV Part 1 and Part 2. The Securities Division orders the suspension of Peters & Co’s investment adviser and Peter’s investment adviser representative registrations. Furthermore, the Securities Division gave notice of its intent to revoke Peters & Co’s investment adviser and Peter’s investment adviser representative registrations and to impose fines. Respondents each have the right to request a hearing on the Summary Order.

A Consent Order was entered regarding this matter on October 9, 2012.

AAMCO Transmissions, Inc. - S-12-0916-12-SC01 - Statement of Charges

On May 23, 2012, the Securities Division entered a Statement of Charges against Respondent, AAMCO Transmissions Inc. (“ATI”). The Securities Division alleged that ATI violated RCW 19.100.170 by delivering a franchise disclosure document containing at least three omissions of fact to a prospective franchisee. The Statement of Charges gives notice of the Securities Division’s intent to enter an Order to Cease and Desist and an Order to Suspend Eligibility for Exemptions. ATI has the right to request a hearing on the Statement of Charges.

A Consent Order was entered on October 15, 2012.

Andrew J. Eubanks - S-11-0674-12-FO01 - Final Order

On May 23, 2012, the Securities Division entered a Final Order against Andrew J. Eubanks (“Eubanks”). The Securities Division previously entered a Statement of Charges against Eubanks on April 25, 2012. The Statement of Charges alleged that Eubanks raised approximately $80,000 through the sale of investments in purported investment funds named Excel Subgroup 4.0 and Excel Subgroup 5.0. The Statement of Charges alleged that Eubanks violated the registration and anti-fraud provisions of the Securities Act of Washington. The Securities Division orders Eubanks to cease and desist from violating the Securities Act of Washington, and orders Eubanks to pay a fine and costs. Eubanks has a right to request a review of the Final Order.

Josef Erick Ewert, d/b/a Atlas, Visioncom Media, and Frontline Medical Systems - S-10-443-12-SC01 - Statement of Charges

On May 22, 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist, to Impose a Fine, and to Charge Costs (“Statement of Charges”) against Josef Erick Ewert (“Respondent”). The Securities Division alleged that during 2009 and 2010, Respondent resided in Seattle, Washington. The Securities Division alleged that Respondent offered and sold investments in a digital advertising screen business to at least one investor for a total of approximately $32,000. The Securities Division also alleged that Ewert offered and/or sold investments to produce and market a stethoscope sterilizer device to at least two investors for a total of $8,500. The Securities Division alleged that Respondent violated the registration and anti-fraud provisions of the Securities Act of Washington. The Securities Division gave notice of its intent to impose a fine and to charge costs. Respondent has the right to request a hearing on the Statement of Charges.

A Final Order was entered regarding this matter on June 28, 2012.

UniHost Corporation, Wasantha Weerasekera, and Richmond F. Richardson - S-12-0899-12-SC01 - Statement of Charges

On May 21, 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist and to Charge Costs (“Statement of Charges”) against UniHost Corporation, Wasantha Weerasekera, and Richmond F. Richardson (“Respondents”). The Securities Division alleged that Respondents offered and sold at least $20,000 worth of common stock in UniHost to at least two Washington investors. The Securities Division alleged that Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington. The Securities Division gave notice of its intent to order Respondents to cease and desist from any further violations of the Securities Act and to charge costs of at least $2,000 each to Weerasekera and Richardson. Respondents each have the right to request a hearing on the Statement of Charges.

A Consent Order as to Unihost Corporation and Wasantha Weerasekera was entered on November 5, 2012.

A Consent Order as to Richmond F. Richardson was entered on November 5, 2012.

Financial Solutions II, LLC; Neal T. Ische; and Theodore C. Dutcher - S-10-261-12-FO02 - Final Order

On May 21, 2012, the Securities Division entered a Final Order to Cease and Desist, to Impose a Fine, and to Charge Costs ("Final Order"), as to Financial Solutions II, LLC and Theodore C. Dutcher ("Respondents"). The Securities Division previously entered a Statement of Charges against Respondents on May 20, 2011. The Securities Division alleged that from at least 2004 through 2006, Respondents participated in offering and selling more than $950,000 worth of investments to at least twelve investors or prospective investors in natural gas well production. The Securities Division found that Respondents had violated the registration and the anti-fraud provisions of the Securities Act of Washington and ordered Respondents to cease and desist from any further violations and ordered Dutcher to pay a fine and costs. Respondents each have the right to request judicial review of the Final Order.

Jocor Enterprises, LLC d/b/a Volcano Fine Electronic Cigarettes - S-12-0954-12-SC01 - Statement of Charges

On May 21, 2012, the Securities Division entered a Statement of Charges against Respondent Jocor Enterprises, LLC doing business as Volcano Fine Electronic Cigarettes, a Hawaii limited liability company. The Securities Division alleged that the Respondent violated the registration and disclosure document provisions of the state Franchise Act in connection with the offer and sale of a franchise to a Washington State resident. The Securities Division intends to order the Respondent to cease and desist from violating the Franchise Act.

A Consent Order was entered regarding this matter on June 5, 2012.

Vend-A-Future of Seattle, Ltd.; Jason Nelson; Tracy Coats - S-11-0814-12-SC01 - Statement of Charges

On May 17, 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist (“Statement of Charges”) against Vend-A-Future of Seattle, Ltd., Jason Nelson, and Tracy Coats (collectively “Respondents”). The Securities Division alleges that Respondents offer and sell vending machine business opportunities to Washington residents in violation of the Business Opportunity Fraud Act. The Statement of Charges alleges that Respondents violated the registration, disclosure document, and anti-fraud provisions of the Business Opportunity Fraud Act, and gives notice of the Securities Division’s intent to enter an Order to Cease and Desist. Respondents have a right to request a hearing on the Statement of Charges.

A Consent Order as to Vend-A-Future of Seattle, Ltd, and Jason Nelson was entered on September 13, 2012.

A Consent Order as to Tracy Coats was entered on September 13, 2012.

Mitchell A. Steitz - S-10-451-12-FO01 - Final Order

On May 9, 2012, the Securities Division entered a Final Order against Mitchell A. Steitz (“Steitz”). The Securities Division previously entered a Statement of Charges against Steitz on July 26, 2011. The Statement of Charges alleged that Steitz, a former securities salesperson with MML Investor Services (“MML”) and Northwestern Mutual Investment Services (“NMIS”), engaged in dishonest and unethical practices with respect to one of his Washington resident customers while he was employed with NMIS. Steitz represented to his customer that his customer could invest with Steitz in order to gain access to a special investment program only available to NMIS employees. NMIS maintained no such investment program. Steitz accepted two investments for a total of $12,500 from his customer and never paid his customer back. The Statement of Charges also alleged that Steitz violated the registration and anti-fraud provisions of the Securities Act. The Securities Division orders Steitz to cease and desist from violating the Securities Act of Washington, denies any future securities registration applications made by Steitz, and orders Steitz to pay a fine of $10,000 and investigative costs of $900. Steitz has the right to request judicial review of this matter.

Leschi Equity Partners, LLC and David A. Cochran - S-09-282-12-SC01 - Statement of Charges

On May 9, 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist, to Impose a Fine, and to Charge Costs (“Statement of Charges”) against Respondents, Leschi Equity Partners, LLC (“Leschi”) and David A. Cochran. The Securities Division alleged that Leschi was formed to purchase a waterfront apartment complex in Seattle, Washington and to convert the apartments into condominium units, but the apartments were never acquired. The Securities Division alleged that Respondents each violated the registration and anti-fraud provisions of the Securities Act of Washington. The Securities Division intends to order Respondents to cease and desist from violating the Act and gave notice of its intent to impose fines and to charge costs. Respondents each have the right to request a hearing on the Statement of Charges.

A Final Order regarding this matter was entered on July 3, 2012.

Comfort Dental Group, Inc., Rick Kushner, Neil Norton and Graig Bears - S-11-0766-12-CO01 - Consent Order

On May 1, 2012, the Securities Division entered into a Consent Order with Respondents Comfort Dental Group, Inc., Rick Kushner, Neil Norton and Graig Bears of Lakewood, Colorado, in which the Division alleged that Respondents offered and/or sold unregistered dental practice franchises and failed to provide a franchise disclosure document to franchisees in violation of the state Franchise Act. The Division also alleged that Respondents Comfort and Kushner violated the anti-fraud provisions of the Act by failing to provide franchisees with the basis and assumptions underlying financial performance representations. Without admitting or denying the Securities Division's allegations, Respondents agreed to cease and desist from violating the registration and disclosure document provisions of the state Franchise Act. Respondents Comfort and Kushner, without admitting or denying the Securities Division's allegations, agreed to cease and desist from violating the anti-fraud provisions of the state Franchise Act. Respondents further agreed to reimburse the Securities Division $7,688 for its costs of investigation. Respondents waived their rights to a hearing and judicial review of the matter.

JFB Capital, LLC; Jason F. Bond - S-12-0958-12-TO01 - Summary Order

On May 1, 2012, the Securities Division entered a Summary Order to suspend and/or revoke investment adviser and investment adviser representative registration ("Summary Order") against JFB Capital, LLC and Jason F. Bond. The Summary Order alleges that JFB Capital, LLC, a registered investment adviser, and Jason F. Bond, JFB Capital, LLC's investment adviser representative, have violated the Securities Act of Washington by failing to maintain JFB Capital, LLC's minimum financial requirements. The Securities Division orders the suspension or revocation of JFB Capital, LLC's investment adviser and Jason Bond's investment adviser representative registrations. Respondents have the right to request a hearing on the Summary Order.

A Consent Order was entered regarding this matter on July 16, 2012.

ARP Wave, LLC - S-11-0827-11-CO01 - Consent Order

On April 30, 2012, the Securities Division entered into a Consent Order with ARP Wave, LLC, of Apple Valley, Minnesota. In the Consent Order, the Division alleged that the company sold an unregistered business opportunity in violation of the Business Opportunity Fraud Act. The Division also alleged that the company failed to deliver an offering circular to the purchaser, failed to include contract provisions required by law, and made earnings claims which were unsubstantiated by empirical data. Without admitting or denying the Securities Division’s allegations, ARP Wave, LLC agreed to cease and desist from violating the registration, disclosure document, contract content and anti-fraud provisions of the act. ARP Wave, LLC waived its right to a hearing and judicial review of the matter.

Silvino Patulot III; Petelo David Tuiasosopo; Insource Jobs, Inc; Strategic Business Development, LLC; Educate Enterprises Services, LLC - S-06-183-12-SC01 – Statement of Charges

On April 26, 2012, the Securities Division entered a Statement of Charges against Respondents, Silvino Patulot III, Petelo David Tuiasosopo, Insource Jobs, Inc., Strategic Business Development, LLC and Educate Enterprises Services, LLC. The Securities Division alleged that Respondents sold unregistered franchises of a purported mortgage origination business. The Statement of Charges alleges the Respondents violated the registration, offering circular and anti-fraud provisions of the Act, and gives notice of the Securities Division’s intent to enter an Order to Cease and Desist. Respondents each have a right to request a hearing on the Statement of Charges.

A Final Order as to Silvino Patulot III and Insource Jobs, Inc. was entered on June 22, 2012.

Mark K. Abney - S-11-004-12-FO01 - Final Order

On April 26, 2012, the Securities Division entered a Final Order to Cease and Desist, to Impose a Fine, and to Charge Costs against Mark K. Abney ("Respondent"). The Securities Division previously entered a Statement of Charges against Respondent on March 13, 2012. The Statement of Charges alleged that Respondent solicited investors to purchase common stock in Better World Materials Inc., a company that was to produce recycled building materials. The Statement of Charges further alleged that Respondent had offered and sold unregistered securities, acted as an unregistered securities salesperson, and made misrepresentations or omissions of material fact about the stock to investors. The Securities Division orders Respondent to cease and desist from violating the Securities Act of Washington, to pay a fine of $1,500, and to pay investigative costs of $1,000. Respondent has the right to request judicial review of the Final Order.

Andrew J. Eubanks - S-11-0674-11-SC01 - Statement of Charges

On April 25, 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist, Impose a Fine, and Recover Costs against Andrew J. Eubanks (“Eubanks”). The Statement of Charges alleges that Eubanks raised approximately $80,000 through a sale of investments in purported investment funds named Excel Subgroup 4.0 and Excel Subgroup 5.0. The Securities Division intends to order Eubanks to cease and desist from violating the Securities Act of Washington, and gives notice of its intent to impose a fine and recover costs. Eubanks has a right to request a hearing on the Statement of Charges.

A Final Order was entered regarding this matter on May 23, 2012.

Samuel A. Barnes and Evergreen 1031, LLC - S-11-0671-11-CO01 - Consent Order

On April 24, 2012, the Securities Division entered into a Consent Order with Samuel A. Barnes and Evergreen 1031, LLC ("Respondents"). The Securities Division alleged that between 2009 and 2011, the Respondents offered and sold nearly $800,000 worth of real estate investments in Evergreen 1031, LLC to at least eight investors in Washington. The Securities Division alleged that when offering and selling the investments, Respondents each violated the registration and anti-fraud provisions of the Securities Act of Washington ("Securities Act"). Prior to the entry of the Consent Order, Samuel Barnes, through his attorney, repaid the principal owed to investors, plus some additional interest. In settling the matter, the Respondents neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act. Samuel Barnes further agreed to reimburse the Securities Division $5,000 for its costs of investigation. Respondents each waived their rights to a hearing and to judicial review of the matter.

TBOC, LLC; Andrew T. Miller; Michelle M. Nelson - S-11-0654-12-FO01 - Final Order

On April 16, 2012, the Securities Division entered a Final Order against TBOC, LLC ("TBOC"), Andrew T. Miller ("Miller"), and Michelle M. Nelson ("Nelson") (collectively, "Respondents"). The Securities Division had previously entered a Statement of Charges against Respondents on March 9, 2012. The Statement of Charges alleged that TBOC and Miller individually offered and sold at least $504,000 worth of securities. The Statement of Charges further alleged that Respondents violated the securities registration and anti-fraud provisions of the Securities Act of Washington, and that Miller and Nelson each violated the Securities Act's section requiring registration of securities broker-dealers and salespersons. The Final Order orders the Respondents to cease and desist from violating the Securities Act of Washington, to pay fines, and to reimburse the Securities Division its investigative costs. The Respondents have the right to request judicial review of the Final Order.

Horizon Commercial Real Estate Funding, Inc.; Sunshine Inn, Inc.; Timothy P. Moyer – S-10-038-12-FO01- Final Order

On April 16, 2012, the Securities Division entered a Final Order against Horizon Commercial Real Estate Funding, Inc.; Sunshine Inn, Inc.; and Timothy P. Moyer (collectively “Respondents”). The Securities Division previously entered a Statement of Charges against the Respondents on March 9, 2012. The Statement of Charges alleged that the Respondents offered and sold investments in the form of promissory notes or loan agreements. The Statement of Charges further alleged that Respondents offered unregistered securities, acted as unregistered broker-dealer or securities salespersons, and violated the anti-fraud provisions of the Securities Act of Washington. The Final Order orders the Respondents to cease and desist from violating the Securities Act of Washington, orders the Respondents to pay a fine of $30,000 and reimburse the Securities Division for its investigative costs. The Respondents have the right to request judicial review of the Final Order.

Lucy M Miller - S-09-163-10-CO05 - Consent Order

On March 28, 2012, the Securities Division entered into a Consent Order, S-09-163-10-CO05, with Lucy Miller. Previously, on May 21, 2010, the Securities Division entered a Statement of Charges against NDG Investment Group, LLC (NDG), Ms. Miller and others (collectively the Respondents). The Statement of Charges alleged that the Respondents sold investments in the form of partnership agreements, limited liability company interests and promissory notes for the purpose of constructing residential and commercial real estate developments in Lima, Peru. The Statement of Charges alleged that the Respondents raised over $15,000,000 from over 100 investors from 2006 to 2009. The Statement of Charges alleged that Respondents offered unregistered securities, acted as unregistered broker-dealers or securities salespersons, and violated the anti-fraud provisions of the Securities Act of Washington. In settling the matter, Ms. Miller, a former NDG employee, agreed, without admitting or denying the findings of fact, to cease and desist from violating the Securities Act of Washington. Ms. Miller waived her rights to a hearing or other further proceedings in the matter.

Apollo Pet Care, Inc. - S-11-0817-11-CO01 - Consent Order

On March 22, 2012, the Securities Division entered into a Consent Order with Apollo Pet Care of Incline Village, California in which the Division alleged that the company offered and/or sold unregistered pet care franchises in violation of the state Franchise Act. Without admitting or denying the Securities Division’s allegations, Apollo Pet Care agreed to cease and desist from violating the registration provision of the state Franchise Act. Apollo Pet Care further agreed to reimburse the Securities Division $ 1,100 for its costs of investigation. Apollo Pet Care waived its right to a hearing and judicial review of the matter.

Mio Sushi International, Inc., Sung In Kim aka Sonny Kim and James Han - S-11-0858-12-CO01 - Consent Order

On March 13, 2012, the Securities Division entered into a Consent Order with respondents Mio Sushi International, Inc., Sung In Kim aka Sonny Kim, and James Han, in which the Division alleged that the respondents offered and/or sold unregistered sushi restaurant franchises in violation of the state Franchise Act. Without admitting or denying the Securities Division’s allegations, the respondents agreed to cease and desist from violating the registration provision of the state Franchise Act. Respondents further agreed to reimburse the Securities Division $ 4,400 for its costs of investigation. Respondents waived their right to a hearing and judicial review of the matter.

Better World Materials Inc., Dalyn S. Judd, Mark K. Abney - S-11-004-12-SC01 – Statement of Charges

On March 13, 2012, the Securities Division entered a Statement of Charges against Respondents, Better World Materials Inc., Dalyn S. Judd, and Mark K. Abney. The Securities Division alleged that Respondents each represented to investors that Better World Materials Inc. has a process for heating shredded plastics and forming them into building materials. The Securities Division alleged that during 2010 and 2011, Respondents collectively offered and sold more than $1,475,000 worth of unregistered common stock in Better World Materials Inc. to more than 400 shareholders in Washington and other states. The Securities Division alleged that when offering and selling the stock, Respondents each violated the anti-fraud provision of the Securities Act of Washington by misrepresenting or failing to disclose material information to investors. The Securities Division also alleged that Respondents each violated the registration provisions of the Securities Act. The Securities Division is seeking fines and costs against Respondents. Respondents each have the right to request a hearing on the Statement of Charges.

A Consent Order as to Better World Materials Inc and Dalyn Judd was entered on June 5, 2012.

A Final Order as to Mark K Abney was entered on April 26, 2012.

Todd Allan Hoss and Hoss Mortgage Investors, Inc. - S-09-043-12-FO01 - Final Decision and Order

On March 9, 2012, the Director of the Department of Financial Institutions entered a Final Decision and Order (“Final Decision”) against Respondent, Todd Allan Hoss. The Final Decision found that Respondent had violated the registration and anti-fraud provisions of the Securities Act of Washington. The Final Decision affirmed the revocation of exemptions available to Respondent under RCW 21.20.320(1), (5), (8), (9), (11) and (17). The Final Decision revoked the Respondent’s securities salesperson registration and ordered Respondent to pay a fine of $100,000. Respondent has the right to file a petition for reconsideration or to request judicial review.

Horizon Commercial Real Estate Funding, Inc.; Sunshine Inn, Inc.; Timothy P. Moyer - S-10-038-12-SC01 - Statement of Charges

On March 9, 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Impose Fines, and to Charge Costs against Horizon Commercial Real Estate Funding, Inc.; Sunshine Inn, Inc.; and Timothy P. Moyer (collectively “Respondents”). The Statement of Charges alleges that Respondents offered and sold investments in the form of promissory notes or loan agreements. The Statement of Charges alleges that Respondents offered unregistered securities, acted as unregistered broker-dealer or securities salespersons, and violated the anti-fraud provisions of the Securities Act of Washington. The Securities Division intends to order Respondents to cease and desist from violating the Securities Act of Washington, and gives notice of its intent to impose fines and charge costs. Respondents have a right to request a hearing on the Statement of Charges.

A Final Order was entered regarding this matter on April 16, 2012.

TBOC, LLC; Andrew T. Miller; Michelle M. Nelson - S-11-0654-12-SC01 – Statement of Charges

On March 9, 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Charge Costs, and to Impose Fines against TBOC, LLC (“TBOC”), Andrew T. Miller (“Miller”), and Michelle M. Nelson (“Nelson”) (collectively, “Respondents”). The Statement of Charges alleges that TBOC and Miller individually offered and sold at least $504,000 worth of securities. The Statement of Charges further alleges that Respondents violated the securities registration and anti-fraud provisions of the Securities Act of Washington, and that Miller and Nelson each violated the Securities Act’s section requiring registration of securities broker-dealers and salespersons. The Securities Division intends to order the Respondents to cease and desist from violating the Securities Act of Washington and gives notice of its intent to impose fines and recover costs. The Respondents have a right to request a hearing on the Statement of Charges.

A Final Order was issued on April 16, 2012

Gigapix Studios, Inc.; Christopher Blauvelt - S-09-018-11-CO01 - Consent Order

On March 8, 2012, the Securities Division entered into a Consent Order with Gigapix Studios, Inc. and Christopher Blauvelt (Collectively "Respondents"). The Securities Division had previously issued a Statement of Charges against Respondents on October 14, 2010. The Statement of Charges alleged that Respondents offered and sold investment units in Gigapix, a digital studio formed to produce animated films and other productions. The Statement of Charges further alleged that Respondents offered unregistered securities, acted as unregistered broker-dealers or securities salespersons, and violated the anti-fraud provisions of the Securities Act of Washington. In settling the matter, Respondents neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act of Washington, and to pay investigative costs of $6,000. Respondents waived their right to a hearing and to judicial review of this matter.

Ronald Dean Bennett d/b/a Ron Bennett Commercial Real Estate; Ron & Marilyn Bennett, LLC - S-10-254-11-SC01 - Statement of Charges

On March 7, 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Impose Fines, and to Charge Costs (the “Statement of Charges”) against Ronald Dean Bennett d/b/a Ron Bennett Commercial Real Estate (“Ron Bennett”), and Ron & Marilyn Bennett, LLC (“RMB, LLC”) (collectively, “Respondents”). The Statement of Charges alleges that, between approximately 1979 and September, 2011, Respondents offered and sold over $26 million worth of promissory notes to approximately 171 investors, the majority of whom are Washington residents. The Statement of Charges further alleges that Respondents violated the securities registration and anti-fraud provisions of the Securities Act of Washington (the “Act”), and that Ron Bennett violated the Act’s provision requiring registration of securities salespersons and broker-dealers. The Securities Division intends to order the Respondents to cease and desist from violating the Act, and gives notice of its intent to impose fines and to recover costs. The Respondents have the right to request an administrative hearing on the Statement of Charges.

A Final Order was entered regarding this matter on November 19, 2012.

Terry M. Phillips dba Limeberry - S-11-0790-11-CO01 - Consent Order

On March 6, 2012, the Securities Division entered into a Consent Order with Terry M. Phillips dba Limeberry of Salem, Oregon in which the Division alleged that Mr. Phillips offered and/or sold unregistered frozen yogurt restaurant franchises in the form of a limited liability company and failed to provide a franchise disclosure document to the licensees in violation of the state Franchise Act. Without admitting or denying the Securities Division’s allegations, Phillips agreed to cease and desist from violating the registration and disclosure document provisions of the state Franchise Act. Mr. Phillips further agreed to reimburse the Securities Division $ 2,600 for its costs of investigation. Mr. Phillips waived its right to a hearing and judicial review of the matter.

BlueRay Technologies, LLC; BlueRay Technologies, Inc.; BlueStar Digital Technologies, Inc.; Erick Hansen; Sean Michael - S-09-478-11-CO01 - Consent Order

On February 29, 2012, the Securities Division entered into a Consent Order with Respondents BlueRay Technologies, LLC, BlueRay Technologies, Inc., BlueStar Digital Technologies, Inc., Erick Hansen, and Sean Michael. The Securities Division had previously entered a Summary Order to Cease and Desist, and Notice of Intent to Impose Fines, and Charge Costs, S-09-478-11-TO01 ("Summary Order") against the Respondents on October 26, 2011. The Summary Order alleged that Hansen offered and sold investments in various companies he formed and controlled in an effort to raise funds to manufacture and produce Blu-ray discs, products, and hardware. The Summary Order also alleged that BlueRay Technologies, LLC offered and sold approximately $4.7 million worth of LLC interests to approximately 107 investors, including about $399,700 to approximately 10 Washington residents, and also engaged in a second round offering of its Class B units in an attempt to raise additional capital. The Summary Order further alleged that Hansen offered and sold stock in BlueStar Technologies, Inc., solicited capital for BlueStar Digital Technologies, Inc., and offered investors the opportunity to exchange their BlueRay Technologies, LLC interests and BlueStar Technologies, Inc. stock for BlueStar Digital Technologies, Inc. stock. In the Consent Order, the Respondents neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act of Washington. The Respondents further agreed to pay a fine of $7,500 and reimburse the Securities Division $5,000 for its costs of investigation. Respondents waived their right to a hearing and judicial review of this matter.

CMG Advisors LLC, Mark J. Swenson - S-10-274-10-CO01 - Consent Order

On February 28, 2012, the Securities Division entered into a Consent Order with CMG Advisors LLC and Mark J. Swenson (collectively "Respondents"). Respondents operated a series of pooled investment vehicles. Investment advisers may only enter into an agreement to be compensated by an advisory fee based on a share of capital gains or capital appreciation with advisory clients who meet the definition of "qualified client" under Rule 205-3 of the Investment Advisers Act of 1940. In the Consent Order, the Securities Division alleged that the Respondents violated RCW 21.20.030 by receiving performance fee compensation without collecting the information to determine whether the investors in the pooled investment vehicles were qualified clients. Some of the investors may not have been qualified clients. In settling the matter, Respondents neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act of Washington. Respondent Mark J. Swenson agreed to pay the Securities Division $10,000 for the costs incurred in the investigation of this matter. Respondents waived their rights to a hearing and to judicial review of this matter.

American Supply; Howard Levanthal - S-11-0709-12-FO01 - Final Order

On February 13, 2012, the Securities Division entered a Final Order against Howard Leventhal and American Supply of Ashfork, Arizona. The Securities Division previously entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist against Howard Leventhal and American Supply on December 19, 2011. The Statement of Charges alleged that Howard Leventhal and American Supply sold a textile distributorship to a Washington resident in violation of the Business Opportunity Fraud Act. The Statement of Charges further alleged the Respondents violated the registration, disclosure document, contract content and anti-fraud provisions of the Act. The Final Order orders Howard Leventhal and American Supply to cease and desist from violating the Act. Howard Leventhal and American Supply have the right to petition the superior court for judicial review of the order.

International Training and Exchange, Inc. d/b/a Lango - S-11-0736-11-CO01 - Consent Order

On February 7, 2012, the Securities Division entered into a Consent Order with International Training and Exchange, Inc. d/b/a Lango ("Lango"). Lango is in the business of providing foreign language instruction to children. In the Consent Order, the Division alleged that Lango sold unregistered franchises to seven Washington residents, failed to deliver an offering circular and made unsubstantiated earnings claims in violation of the Franchise Investment Protection Act. Without admitting or denying the Securities Division's allegations, Lango agreed to cease and desist from violating the registration section, the offering circular section, and the anti-fraud provision of the Act. Lango also agreed to reimburse the Division $4,000 for its costs of investigation. Lango waived its rights to a hearing and judicial review of the matter.

Eddie Baker - S-10-438-12-FO01 - Final Order

On February 2, 2012, the Securities Division entered a Final Order against Eddie Baker. The Securities Division previously entered a Statement of Charges against Willie Louis Jones and Eddie Baker (collectively "Respondents") on November 9, 2011. The Statement of Charges alleged that Respondents solicited Washington residents in King and Pierce counties to invest in a variety of investment opportunities involving real estate ventures. The Statement of Charges also alleged that Respondent Jones procured over $500,000 of investors' funds. The Statement of Charges further alleged that Respondents offered and/or sold unregistered securities, acted as unregistered securities salespersons, and made misrepresentations and/or omissions to Washington residents regarding investment opportunities. The Securities Division orders Respondent Baker to cease and desist from violating the Securities Act of Washington, to pay a fine of $1,000, and to pay investigative costs of $5,000. Respondent Baker has a right to request judicial review of this Final Order.

MRSI International, Inc.; Michael C. Rabanne - S-07-273-12-CO01 - Consent Order

On February 2, 2012, the Securities Division entered into a Consent Order, S-07-273-12-CO01, with MRSI International, Inc. and Michael C. Rabanne (collectively “Respondents”). The Securities Division had previously entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Charge Costs, S-07-273-07-SC01, against the Respondents on July 26, 2011. MRSI International, Inc., a corporation located in Utah, owns a patent on a system for tracking personal possessions. Using the patent technology, the company developed an electronic tracking device. The Securities Division alleged that the Respondents raised at least $1.5 million dollars by selling securities to at least 87 Washington residents. The Securities Division alleged that the Respondents sold common stock in the company, and also investments in the form of a royalty on the gross income derived from the patent and electronic tracking device. The Securities Division further alleged that when selling the royalty investments, the Respondents offered and sold unregistered securities and acted as unregistered broker-dealers or securities salespersons, and that both securities offerings violated the anti-fraud provision of the Securities Act of Washington. The Respondents neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act. The Respondents each waived their right to a hearing and to judicial review of this matter.

David Waldemar Asplund Jr. - S-07-478-12-FO01 - Final Order

On February 1, 2012, the Securities Division entered a Final Order to Cease and Desist, Deny Future Registrations, Impose Fines, and Recover Costs against David Waldemar Asplund Jr. ("Respondent"). The Securities Division previously entered a Statement of Charges against the Respondent on October 6, 2011. The Statement of Charges alleges that the Respondent, a former securities salesperson and investment adviser representative with FSIC, engaged in dishonest and unethical practices with respect to two of his Washington resident customers. The Respondent borrowed $40,000 from one customer, and accepted gifts, entered into a personal financial transaction, and acted as attorney-in-fact and co-trustee for another customer. The Securities Division alleges that the Respondent failed to have his securities salesperson application, Form U-4, updated within 30 days of being named as co-trustee. In addition, the Respondent caused to be filed two amendments to his Form U-4 which did not disclose his position as co-trustee, thus causing false or misleading filings to be made with the Securities Division. The Securities Division orders the Respondent to cease and desist from violating the Securities Act of Washington, denies future securities registration applications of the Respondent, and orders the Respondent to pay a fine of $30,000 and investigative costs of $2,000. The Respondent has the right to request judicial review of this matter.

John W. Tedmon and Michelle M. Bolland - S-09-078-12-CO01 - Consent Order

On January 30, 2012, the Securities Division entered into a Consent Order with Respondents, John W. Tedmon ("Tedmon") and Michelle M. Bolland ("Bolland"). In the Consent Order, the Securities Division alleged that Tedmon and Bolland did business in Yelm, Washington. The Securities Division alleged that from 2006 through 2009, Tedmon offered and sold more than $680,000 worth of promissory note and deed of trust investments to at least six Washington investors. The investments were secured by deeds of trust issued by Tedmon. The Securities Division alleged that during 2009 and 2010, Tedmon offered and sold $185,000 worth of promissory note and deed of trust investments to at least four Washington investors and that the notes and deeds of trust were issued by Bolland. The Securities Division alleged that Respondents each violated the anti-fraud provision of the Securities Act of Washington. The Securities Division alleged that Tedmon violated the securities registration provision of the Securities Act of Washington. The Securities Division also alleged that Tedmon violated a 1982 Consent Order. Without admitting or denying the Securities Division's allegations, Tedmon paid a fine of $2,000 and Bolland paid investigative costs of $1,000. Respondents each waived their right to a hearing and to judicial review of this matter.

A Statement of Charges regarding this matter was entered on July 7, 2010.

Mulligan Capital, Inc.; Mulligan Capital Management, LLC; Mulligan Partners, ERISA, LP; John Mulligan - S-11-0770-11-SC01 - Statement of Charges

On January 30, 2012, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Charge Costs, and to Impose Fines against Mulligan Capital, Inc. ("MCI"), Mulligan Capital Management, LLC ("MCM, LLC"), Mulligan Partners, ERISA, LP ("MP, LP"), and John Mulligan ("Mulligan") (collectively, "Respondents"). The Statement of Charges alleges that, beginning no later than 2003, MCI provided investment advisory services to Washington residents while not registered to do so. The Statement of Charges further alleges that MP, LP, through Mulligan, offered and sold at least $748,000 worth of its limited partnership interests to at least ten Washington residents and that MCM, LLC, in its capacity as investment advisor to MP, LP, entered into performance-based fee agreements with at least six Washington investors who were not "qualified clients" as defined in Rule 205-3 of the Investment Advisors Act of 1940. The Securities Division also alleges that MCI and MCM, LLC made false or misleading statements in documents filed with the Securities Division. The Statement of Charges alleges that this conduct violated various provisions of the Securities Act of Washington (the "Act"). The Securities Division intends to order the Respondents to cease and desist from violating the Act, and gives notice of its intent to impose fines and to recover costs. The Respondents have the right to request a hearing on the Statement of Charges.

A Consent Order was entered regarding this matter on October 14, 2013.

National Strategic Investment Corporation; Steven M. Hettema - S-07-294-11-CO01 - Consent Order

On January 27, 2012, the Securities Division entered into a Consent Order, S-07-294-11-CO01, with National Strategic Investment Corporation and Steven M. Hettema. The Securities Division had previously entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Recover Costs, S-07-294-10-SC01, against National Strategic Investment Corporation ("NSIC"); Real Investor Mortgage, Inc. ("RIM"); Starlie, LLC; Charles W. Williams and Steven M. Hettema (collectively "Respondents") on December 17, 2010. NSIC was a Washington corporation that hosted educational courses regarding investment alternatives, with a focus on real estate investing. NSIC also managed an investor club with several locations in Washington and neighboring states. The Division alleged that Respondents raised a total of $876,834 by selling investments to members of the investor club located in Port Orchard. The Division alleged that Respondents sold investments in the purchase and remodel of a commercial building, and also investments in the form of promissory notes and promissory notes convertible to stock, the proceeds which were to be used to expand the NSIC and RIM businesses. The Division further alleged that Respondents offered and sold unregistered securities, acted as unregistered broker-dealers or securities salespersons, and violated the anti-fraud provisions of the Securities Act of Washington. National Strategic Investment Corporation and Steven M. Hettema neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act. National Strategic Investment Corporation and Steven M. Hettema each waived their right to a hearing and to judicial review of this matter.

Window World, Inc - S-11-0805-11-CO01 - Consent Order

On January 17, 2012, the Securities Division entered into a Consent Order with Window World, Inc. of North Wilkesboro, North Carolina, in which the Division alleged that the company offered and sold unregistered window, door and siding replacement franchises and failed to provide a franchise disclosure document to its licensees in violation of the state Franchise Act. Without admitting or denying the Securities Division's allegations, Window World, Inc. agreed to cease and desist from violating the registration and disclosure document provisions of the state Franchise Act. Window World, Inc. further agreed to reimburse the Securities Division $1,800 for its costs of investigation. Window World, Inc. waived its right to a hearing and judicial review of the matter.

T&H Northwest, LLC and Tyler Gonty - S-09-134-12-FO01 - Final Order

On January 6, 2012, the Securities Division entered a Final Order against Tyler Gonty ("Gonty") and T&H Northwest, LLC ("T&H). The Securities Division previously entered a Statement of Charges against Gonty and T&H on November 30, 2011. The Statement of Charges alleged that from 2006 to 2009 Gonty, through T&H, raised over $700,000 from at least 80 investors, in violation of the Securities Act of Washington, for the production and distribution of adult movies and websites. The Statement of Charges further alleged that Gonty and T&H violated the securities registration and anti-fraud provisions of the Securities Act of Washington. The Final Order orders that Gonty and T&H cease and desist from violating the Act and orders that Gonty and T&H pay a fine of $20,000 and reimburse the Securities Division for its investigative costs. The Respondents have the right to request judicial review of the Final Order.

Northwest Property Associates, Inc; Grant Holdings, LLC; Shirley J Henderson - S-09-026-12-FO01 - Final Order

On January 4, 2012, after an adjudicative hearing, the Director of the Department of Financial Institutions entered a Final Order of Dismissal for an Amended Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist and to Impose a Fine against Respondents, Northwest Property Associates, Inc.; Grant Holdings, L.L.C.; and Shirley J. Henderson.

Amended Statement of Charges were entered regarding this matter on June 24, 2010.