Orders From Other Years

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603 Financial, Inc. d.b.a. Goddard Financial Planning - S-20-2875-20-CO01 - Consent Order

On June 5, 2020, the Securities Division entered into a Consent Order with 603 Financial, Inc. d.b.a. Goddard Financial Planning (CRD 167976) (“Consent Order”). The Consent Order states that Respondent employed an unregistered investment adviser representative from on or about September 13, 2016 to February 19, 2020 in violation of RCW 21.20.040; failed to terminate the registration of another investment adviser representative in violation of RCW 21.20.080; and failed to enforce policies and procedures designed to prevent violations of the registration provisions of Chapter RCW 21.20. The Consent Order includes a $15,000 fine. Respondent waived its right to judicial review of the matter.


Lynette A. Johnson - S-19-2691-19-CO01 - Consent Order

On June 4, 2020, the Securities Division entered into a Consent Order with Lynette A. Johnson (Johnson). Johnson was registered as an investment adviser representative while employed at Harvest Capital Advisors, Inc. (Harvest Capital).  The Consent Order alleged that between approximately 2016 and 2018, Johnson accepted gifts totaling $115,000 from an elderly client of Harvest Capital, including when the resident had diminished mental capacity.  The Respondent neither admitted nor denied the allegations, but agreed to the denial of any future securities registration applications, and to pay a $2,500 fine.  The Respondent waived her right to a hearing and to judicial review of the matter.


Richard O. Johnson II - S-17-2275-20-FO01 - Final Order

On June 2, 2020, the Director of the Washington State Department of Financial Institutions entered a Final Order against Richard O. Johnson II (Respondent). In the Final Order, the Securities Division found that Respondent violated RCW 21.20.040 when he held himself out as a “certified financial planner” while not registered as an investment adviser, or exempt from such registration in the State of Washington. The Final Order ordered Respondent to cease and desist from any further violations of RCW 21.20.040. The Final Order ordered that any future securities registration application of Respondent as an investment adviser, broker-dealer, investment adviser representative, or securities salesperson shall be denied. The Final Order ordered Respondent to pay a fine of $10,000 and to pay costs of $2,000. Respondent has the right to petition the superior court for judicial review of the Final Order.


Huston 3D Money - S-19-2672-20-CO01 - Consent Order

On May 28, 2020, the Securities Division entered into a Consent Order with Respondents Jeffery Allen Huston (Huston), 3D Money, LLC, AEHK, LLC, Maplewood Offering, LLC, and Sunrise Capital, LLC (Respondents). The Securities Division alleged in its consent order that Respondents violated the Securities Act of Washington by offering and selling unregistered securities in the form of promissory notes to Washington residents. Respondents were unable to rely on their claimed exemption from registration because they used a bad actor in their offerings, sold their securities through general solicitation, and did not provide required financial disclosures to non-accredited investors. Respondents Huston and 3D Money, LLC also violated the Securities Act of Washington by not registering as a securities salesperson or broker-dealer in Washington while offering and selling these securities. Additionally, Respondents violated the antifraud provision of the Securities Act of Washington by failing to disclose to investors the bad actor’s previous consent order with the Securities Division and that there was a conflict of interest in the bad actor’s recommendation of the securities to investors due to the Respondents paying to attend and sponsor the bad actor’s seminars.

Without admitting or denying the Securities Division’s allegations, Respondents agreed to cease and desist from violations of RCW 21.20.140, the securities registration provision; RCW 21.20.040, securities salesperson and broker-dealer registration section; and RCW 21.20.010, the antifraud provision of the Securities Act of Washington. Respondents agreed to pay a total of $13,312.50 in fines and investigative costs and waived its right to a hearing and judicial review of the matter.


Lifestyle Publications - S-20-2867-20-CO01 - Consent Order

On May 21, 2020, the Securities Division entered into a consent order with Lifestyle Media Solutions, LLC.

The Securities Division alleged that Lifestyle Media Solutions violated the registration and disclosure document provisions of the Franchise Investment Protection Act of Washington, in connection with the company’s sale of two community magazine franchises in Washington.

Without admitting or denying the Securities Division’s allegations, Lifestyle Media Solutions agreed to cease and desist from violating the Franchise Investment Protection Act of Washington. Lifestyle Media Solutions further agreed to pay $2,000 in investigative costs and waived its right to a hearing and judicial review of the matter.


Skylette Team, Inc. - S-20-2884-20-CO01 - Consent Order

On May 21, 2020, the Securities Division entered into a consent order with Skylette Team, Inc.

The Securities Division alleged that Skylette Team offered and sold an ice cream franchise in Washington without being registered to do so, in violation of the Franchise Investment Protection Act’s registration provision. 

Without admitting or denying the Securities Division’s allegations, Skylette Team agreed to cease and desist from violating the Franchise Investment Protection Act of Washington. Skylette Team further agreed to pay $500 in investigative costs and waived its right to a hearing and judicial review of the matter.


Taylor Forrester Moffitt a.k.a. Taylor Moffitt of Halydean - S-19-2736-20-FO01 - Final Order

On May 20, 2020, the Securities Division entered an Entry of Findings of Fact and Conclusions of Law and Final Order to Cease and Desist, to Impose Fines and to Charge Costs (“Final Order”) against Taylor Forrester Moffitt a.k.a. Taylor Moffitt of Halydean (Respondent). The Final Order alleges that Respondent violated the Securities Act of Washington by offering and selling unregistered Halydean stock to five investors, raising at least $24,500 and misrepresenting or failing to disclose material facts to investors in violation of RCW 21.20.140 and .010 respectively. The Final Order alleges that Respondent Moffitt sold securities when not registered as a broker or securities salesperson in violation of RCW 21.20.040. The Securities Division ordered Respondent to cease and desist from violating the Securities Act of Washington, imposed an administrative fine of $24,500, and charged investigative costs of $16,470.17. Respondent has the right to request judicial review of the Final Order.


Morgan Rothschild - S-20-2868-20-SC01 - Statement of Charges

On May 18, 2020, the Securities Division issued a Statement of Charges and Notice of Intent to Deny Franchise Broker Registration (2020 Statement of Charges) against Morgan Rothschild.

In December 2018, the Securities Division entered an Amended Statement of Charges and Notice of Intent to Enter Order to Cease and Desist (2018 Statement of Charges) against Morgan Rothschild and his company, Party Princess International. The Statement of Charges alleged that they violated the registration and disclosure document provisions of the Franchise Investment Protection Act of Washington in connection with their offer and sale of Party Princess International franchises in Washington. The Securities Division also alleged that Morgan Henning and Party Princess International also violated the Franchise Investment Protection Act’s antifraud provision by making misleading statements to prospective franchisees about the profitability of owning a Party Princess International franchise in Washington

To resolve the 2018 Statement of Charges, in August 2019, the Securities Division entered into a consent order with Morgan Rothschild and Party Princess International. In the consent order, the Securities Division adopted the findings of fact and conclusions of law from its 2018 Statement of Charges, including the Securities Division’s conclusion of law that Morgan Rothschild and Party Princess International violated RCW 19.100.170, the Franchise Investment Protection Act’s antifraud provision. The consent order provided that Morgan Rothschild and Party Princess International neither admitted, nor denied these findings of fact and conclusions of law. As part of the consent order, Party Princess International agreed to cease and desist from violations of the Franchise Investment Protection Act’s registration, document disclosure, and antifraud provisions. 

In February 2020, Morgan Rothschild filed a franchise broker application with the Securities Division to register as a franchise broker pursuant to RCW 19.100.140.

The Securities Division’s 2020 Statement of Charges alleges that Morgan Rothschild’s past conduct, as identified in the 2018 Statement of Charges and subsequent consent order, constitutes dishonest or unethical practices in the franchise industry, under RCW 19.100.252(6). The Securities Division intends to deny Morgan Rothschild’s franchise broker application.

Morgan Rothschild has a right to request a hearing on the 2020 Statement of Charges.


Pinnacle Lending LLC, Waln Team Funding LLC, Paul DeLette Waln Jr., Tamara Christine King - S-19-2811-20-SC01 - Statement of Charges

On May 6, 2020, the Securities Division entered a Statement of Charges against Respondents Pinnacle Lending LLC, Waln Team Funding LLC, Paul DeLette Waln Jr., and Tamara Christine King.  The Securities Division alleged that Respondents had offered and sold investments to finance real estate construction projects.  The Securities Division alleged that Respondents had offered and sold $325,000 of investments in Pinnacle Lending to at least two investors and more than $100,000 of investments in Waln Team Funding to at least two investors. The Securities Division alleged that Respondents each offered and sold unregistered securities and each violated the anti-fraud provision of the Securities Act of Washington by misrepresenting and by failing to disclose material information about the investments.  The Statement of Charges gave notice of the Securities Division’s intent to order Respondents to cease and desist from violating the Securities Act, to impose fines, and to charge investigative costs. The Respondents each have the right to request an administrative hearing on the Statement of Charges.


Halcyon Apartments CC4R, LLC and Paul DeLette Waln Jr. - S-20-2881-20-SC01 - Statement of Charges

On May 6, 2020, the Securities Division entered a Statement of Charges against Respondents Halcyon Apartments CC4R, LLC and Paul DeLette Waln Jr.  The Securities Division alleged that Respondents had offered and sold a total of $1.9 million worth of Halcyon LLC membership unit investments to more than 25 investors. The Securities Division alleged that Respondents offered and sold unregistered securities.  The Statement of Charges gave notice of the Securities Division’s intent to order Respondents to cease and desist from violating the Securities Act, to impose fines, and to charge investigative costs. The Respondents each have the right to request an administrative hearing on the Statement of Charges.


Harbour Driving School, Inc. d.b.a. Defensive Driving School and John Coburn Fawcett, Jr. a.k.a. J.C. Fawcett - S-20-2834-20-SC01 - Statement of Charges

On May 5, 2020, the Securities Division entered a Statement of Charges against Harbour Driving School, Inc. d.b.a. Defensive Driving School and John Coburn Fawcett, Jr. a.k.a. J.C. Fawcett (“Respondents”). The Securities Division alleged that the Respondents sold at least two franchises in the state and received $25,000 in payment for a license. The Securities Division alleged that the Respondents failed to register the offer and sale of a franchise with the Securities Division and failed to provide franchisees with a franchise disclosure document. The Securities Division intends to order the Respondent to cease and desist from violations of RCW 19.100.020 and RCW 19.100.080, the franchise registration and franchise disclosure document sections of the Franchise Investment Protection Act. The Respondents each have an opportunity for hearing in this matter.


Geoffrey Wescott James a.k.a. Geoff James or Geoff Wescott, d.b.a. Veritas International Limited, d.b.a. Veritas Incorporated, d.b.a. Veritas Capital Partners, d.b.a. Aquila LTD Malta, and Wescott Special Projects - S-18-2523-20-SC01 - Statement of Charges

On May 1, 2020, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Impose a Fine, and to Charge Costs (Statement of Charges) against Geoffrey Wescott James a.k.a. Geoff James or Geoff Wescott, d.b.a. Veritas International Limited, d.b.a. Veritas Incorporated, d.b.a. Veritas Capital Partners, d.b.a. Aquila LTD Malta, (Respondents). The Statement of Charges alleges that the Respondents Geoff James and Veritas International Limited violated the Securities Act of Washington by offering and selling unregistered securities in the form of loans and a profit sharing interest in a gold bullion import/export venture and misrepresenting or failing to disclose material facts to an investor in violation of RCW 21.20.140 and .010 respectively. The Statement of Charges alleges that the Respondent James sold securities when not registered as a broker or securities salesperson in violation of RCW 21.20.040. The Securities Division intends to order the Respondents to cease and desist from violating the Securities Act of Washington, to impose an administrative fine, and to charge investigative costs. Respondents each have the right to request a hearing on the Statement of Charges.


Rhino Linings - S-19-2777-20-CO01 - Consent Order

On April 28, 2020, the Securities Division entered into a Consent Order with Respondent Rhino Linings Corporation (Rhino Linings). The Securities Division alleged in its consent order that Rhino Linings sold unregistered franchises to Washington residents when Rhino Linings sold them vehicle protection applicator agreements, and failed to provide a franchise disclosure document to these residents in the sale of its agreements. The Securities Division also alleged that Rhino Linings failed to provide a basis for financial performance representations Rhino Linings made in connection with the offer and sale of Rhino Lining’s franchises. Rhino Linings did not collect sales data from its applicators, and thus could not support its profit claims. Without admitting or denying the Securities Division’s allegations, Rhino Linings agreed to cease and desist from violations of RCW 19.100.020, the franchisee registration provision; RCW 19.100.080, the franchise disclosure document provision; and RCW 19.100.170, the violations provision of the Franchise Investment Protection Act of Washington. Rhino Linings agreed to pay investigative costs of $5,937.50 and waived its right to a hearing and judicial review of the matter.


Global Marine Exploration, Inc., Robert Henry (“Bobby”) Pritchett III, Ronald R. Alber - S-20-2872-20-SC01 - Statement of Charges

On April 24, 2020, 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 Global Marine Exploration Inc. (“GME”), Robert (“Bobby”) Henry Pritchett II (“Pritchett”)I, and Ronald R. Alber (“Alber”).  GME, whose principal place of business is currently located in Sebastian, Florida, is in the business of salvaging and recovering treasure from shipwrecks.

The Statement of Charges alleges that in January 2012, the Respondents violated the registration provisions of the Securities Act of Washington by offering and selling $27,700 worth of unregistered GME stock to a Washington investor.  The Statement of Charges also alleges that Respondents violated the anti-fraud provision of the Securities Act by making untrue and misleading statements and by failing to disclose material information about the stock.  The Statement of Charges gives notice of the Securities Division’s intent to order the Respondents to cease and desist from violating the Securities Act and to impose fines and charge costs against Pritchett and Alber.  The Respondents may each request an administrative hearing on the Statement of Charges.


Morrow, Mark - S-20-2879-20-SC01 - Statement of Charges

On April 23, 2020, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Impose a Fine, and to Charge Costs (“Statement of Charges”) against Mark A. Morrow (“Morrow”). The Statement of Charges alleges Morrow acted as an investment adviser when he advertised trading services for compensation in several Washington Craigslist posting areas. Most recently, these advertisements promised large returns from trading off of the coronavirus pandemic. Additionally, the Statement of Charges alleges that Morrow offered unregistered securities in Washington when he offered to split profits he promised investors would make from his trading. The Statement of Charges further alleges that Morrow made false or misleading statements in his advertisements and otherwise did not provide material information necessary to make his advertisements not misleading.

Morrow is not registered as an investment adviser representative or securities salesperson in Washington. Morrow failed to respond to the Securities Division’s subpoena or take down the relevant advertisements. The Securities Division intends to order Morrow to cease and desist from violating the Securities Act of Washington, to pay a fine of $20,000.00, and to pay investigative costs of $2406.25. Morrow has a right to request a hearing on the Statement of Charges.


Ali Taj, Winchester Fund of Funds LP, Winchester Management Company LLC, Winchester Fund Advisors LLC - S-18-2524-19-SC01 - Statement of Charges

On April 22, 2020 the Securities Division (“the Division”) entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Deny Future Registrations, Impose Fines, and Charge Costs (“Statement of Charges”) against Respondents Ali Taj (“Taj”), Winchester Fund of Funds LP (“Winchester Fund”), Winchester Management Company LLC (“Winchester Management”), and Winchester Fund Advisors LLC (“Winchester Advisors”) (collectively, “the Respondents”).

In the Statement of Charges, the Securities Division alleges that the Respondents, while residing and doing business in Washington, violated the Securities Act of Washington (“the Act”) in the course of managing Winchester Fund and in offering and selling interests therein. Specifically, the Division alleges (a) that Taj and Winchester Fund violated the securities registration provision of the Act by offering and selling approximately $1.63 million of unregistered interests in Winchester Fund; (b) that Taj and Winchester Advisors violated the securities salesperson and broker-dealer registration provisions of the Act by offering and selling interests in Winchester Fund without being appropriately registered; (c) that Taj and Winchester Management violated the investment adviser and investment adviser representative provisions of the Act by transacting business in Washington as an investment adviser or investment adviser representative without being appropriately registered; (d) that Winchester Management violated the performance-fee provision of the Act by entering into investment advisory contracts which contained performance fees prohibited by Washington law; (e) that Taj and Winchester Management violated the antifraud provisions of the Act by failing to comply with the custody requirements of the Act’s accompanying regulations; and (f) that Taj, Winchester Fund, and Winchester Advisors violated the antifraud provisions of the Act by making material misrepresentations or omissions in the offer and sale of interests in Winchester Fund.

The Statement of Charges gives notice of the Securities Division’s intent to enter an order to (a) cease and desist from violations of the Securities Act of Washington, (b) deny future applications for registration by the Respondents, (c) impose fines of $60,000, and (d) to charge investigative costs of $5,000. The Respondents have a right to request a hearing on the Statement of Charges.


Hong, Joseph - S-19-2798-20-FO01 -Final Order

On April 21, 2020, the Securities Division entered a Final Order to Deny Future Registrations, Impose Fines, and Charge Costs (“Statement of Charges”) against Respondent Suk Jin Hong, a/k/a Joseph Hong (CRD #6342504 (“the Respondent”)). The Securities Division previously entered a Statement of Charges against the Respondent on March 9, 2020.

The Final Order finds that the Respondent engaged in dishonest and unethical practices in the securities business by (a) knowingly overdrafting his Merrill Lynch brokerage account and transferring the proceeds to another financial institution without reasonably believing he would be able to repay the overdraft, and (b) failing to disclose the existence of a securities account to his employing firm and obtain the firm’s written consent to maintain the account. The Final Order provides that any of the Respondent’s future investment adviser representative or securities salesperson applications for registration with the Securities Division will be denied, and requires the Respondent to pay a fine of $5,000 and investigative costs of $1,000. The Respondent has the right to request judicial review of the Final Order.


San Francisco Sourdough Eatery, Inc. and Robert Lenhart - S-19-2829-20-CO01 - Consent Order

On April 21, 2020, the Securities Division entered into a Consent Order with San Francisco Sourdough Eatery, Inc. and Robert Lenhart (“Respondents”). The Securities Division alleged that Respondents failed to register the offer and sale of a franchise with the Securities Division. Without admitting or denying the Securities Division’s allegations, Respondents agree and are ordered to cease and desist from violating the Registration section of the Franchise Investment Protection Act. The  Respondents waive their right to a hearing and judicial review of the matter.


Summit Wealth Solutions - S-19-2614-20-SC01 - Statement of Charges

On April 20, 2020, the Securities Division issued a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Revoke Registration, to Deny Future Registrations, to Impose Fines, and to Charge Costs (Statement of Charges) against Margaret Powers, Gordon Lee Powers, Jr., and Summit Wealth Solutions, LLC. 

The Statement of Charges alleges that Margaret Powers, Gordon Lee Powers, Jr., and Summit Wealth Solutions all made unsuitable sales recommendations through their pursuit of a high-risk investment strategy in client accounts. The Statement of Charges further alleges that Margaret Powers and Summit Wealth Solutions charged clients an unreasonable fee by assessing clients an assets under management fee on static long-term cash investments. And the Statement of Charges alleges that Gordon Lee Powers, Jr. provided investment advice without being registered to do so and that, as a result, Summit Wealth Solutions unlawfully employed and associated with him. In the course of providing unregistered investment advice, the Statement of Charges also alleges that Gordon Lee Powers, Jr. misrepresented or omitted material facts.

For Margaret Powers, Gordon Lee Powers, Jr., and Summit Wealth Solutions, the Securities Division intends to order that they cease and desist from violations of the Securities Act of Washington, that their future securities registrations with the Securities Divisions be denied, and that they be liable for fines and costs. The Securities Division also intends to order that the investment adviser representative registration for Margaret Powers and the investment adviser registration for Summit Wealth Solutions each be revoked.

Margaret Powers, Gordon Lee Powers, Jr., and Summit Wealth Solutions each has a right to request a hearing on the Statement of Charges.


Donald Logan - S-19-2632-19-SC01 - Statement of Charges

On April 17, 2020, the Securities Division entered a Statement of Charges (the “order”) against Bremerton resident Donald Logan (“Logan”) who was registered with the Division as a securities salesperson and investment adviser representative of two firms from 2008 to 2018.  The order alleges that Logan engaged in unethical conduct by exercising unauthorized discretion over clients’ accounts, and by misusing client forms.  The order also alleges that Logan failed to make required updates of his Form U4, and that he made false filings with the Division by submitting Forms U4 that did not disclose a civil judgment against him.  The order further alleges that Logan acted unethically when he did not disclose his financial interest in recommendations that he made to a client.  The order gives notice of the Division’s intent to order Logan to cease and desist from violating the Washington State Securities Act, to pay the Division’s investigative costs of $2,000, and to pay a fine of $10,000.  The order also gives notice of the Division’s intent to deny any investment adviser, investment adviser representative, broker-dealer, and securities salesperson registrations that Logan may seek in the future.  Logan may request an administrative hearing on the order.


Chicago Doughnut Franchise Company LLC - S-18-2406-20-SC01 - Statement of Charges

On April 6, 2020, the Securities Division entered a Statement of Charges and Notice of Intent to Order to Cease and Desist against Respondents Chicago Doughnut Franchise Company, LLC d.b.a. The Dapper Doughnut, Brian Pappas and Jeff Pappas. The Securities Division alleged that the Respondents filed a false or misleading franchise application in violation of RCW 19.100.170, the violations section of the Franchise Investment Protection Act. The Respondents each have an opportunity for hearing in this matter.


Halydean Corporation and Taylor Forrester Moffitt a.k.a. Taylor Moffitt of Halydean - S-19-2736-20-SC01 - Statement of Charges

On April 8, 2020, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Impose a Fine, and to Charge Costs (Statement of Charges) against Halydean Corporation and Taylor Forrester Moffitt a.k.a. Taylor Moffitt of Halydean (Respondents). The Statement of Charges alleges that Respondents violated the Securities Act of Washington by offering and selling unregistered Halydean stock and misrepresenting or failing to disclose material facts to investors in violation of RCW 21.20.140 and .010 respectively. The Statement of Charges alleges that Respondent Moffitt sold securities when not registered as a broker or securities salesperson in violation of RCW 21.20.040. The Securities Division intends to order Respondents to cease and desist from violating the Securities Act of Washington, to impose an administrative fine, and to charge investigative costs. Respondents have the right to request a hearing on the Statement of Charges.


Dai Lam Phuong, a.k.a. Dan Phuong and d.b.a. Fortpoint Investment Management - S-19-2762-20-FO01 - Final Order

On March 26, 2020, the Securities Division entered an Entry of Findings of Fact and Conclusions of Law and Final Order to Cease and Desist, to Impose Fines and to Charge Costs (“Final Order”) against Respondent Dai Lam Phuong, a.k.a. Dan Phuong and d.b.a. Fortpoint Investment Management. The Securities Division alleged that the Respondent violated the Securities Act by acting as an investment adviser and/or an investment adviser representative while not registered to do so and failing to make available books and records. The Securities Division ordered the Respondent to cease and desist from violating the Securities Act, imposed an administrative fine of $76,600, and charged investigative costs of $7,000. The Respondent has a right to request judicial review of the Final Order.


Ron Hannes – S-20-2873-20-SC01 - Statement of Charges

On March 25, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Deny Future Registrations, Impose Fines, and Charge Costs (“Statement of Charges”) against Respondent Ronald Walter Hannes (“Hannes,” CRD #1462241). In the Statement of Charges, the Securities Division alleges that Hannes violated the Securities Act of Washington by employing a scheme to defraud his clients by selling unregistered, fictitious investments, concealing these sales from his broker-dealer, and falsifying documents in response to the broker-dealer’s internal investigation. The Securities Division further alleges that Hannes defrauded at least nineteen clients of at least $2.9 million. The Statement of Charges gives notice of the Securities Division’s intent to enter an order to cease and desist from violations of the Securities Act of Washington, to impose a fine of $100,000, to charge investigative costs of $5,000, and to deny any of Hannes’s future investment adviser representative or securities salesperson applications for registration. Hannes has the right to request a hearing on the Statement of Charges.


OYO Hotels, Inc. - S-19-2703-19-CO01 - Consent Order

On March 20, 2020 the Securities Division (the “Division”) entered into a Consent Order with OYO Hotels, Inc. (“OYO”). In the Consent Order, the Division alleged that OYO offered and sold nine unregistered franchises. The Division also alleged that OYO failed to provide a franchise disclosure document to its Washington franchisees in violation of the State’s Franchise Investment Protection Act (the “Act”). OYO neither admits nor denies these allegations. In settling this matter, OYO agreed to cease and desist from violating the Act, and to pay the Division $2,500 for investigative costs. OYO also waived its right to an administrative hearing and judicial review of this matter.


Get Air Management, Inc. - S-19-2816-20-CO01 - Consent Order

On March 17, 2020, the Securities Division entered into a Consent Order with Get Air Management, Inc. (Respondent). In the Consent Order, the Securities Division alleged that the Respondent violated the Franchise Investment Protection Act by offering and selling franchises in Washington, while not registered to do so. Without admitting or denying the Securities Division’s allegations, the Respondent agreed to cease and desist from the registration and franchise disclosure document portions of the Franchise Investment Protection Act. The Respondent agreed to pay investigative costs of $1,000 and waived its right to a hearing and judicial review of the matter.


Michael D. Jackson – S-17-2329-20-SC01 - Statement of Charges

On March 13, 2020, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Deny Future Registrations, to Impose a Fine, and to Charge Costs (Statement of Charges) against Michael D. Jackson (Respondent). The Statement of Charges alleges that Respondent violated the Securities Act of Washington when he advised a client to open a brokerage account for Respondent to manage away from Respondent’s firm. Respondent then engaged in speculative trading in the account, which lost all of its value. The Statement of Charges alleges that Respondent’s conduct violated RCW 21.20.020 and RCW 21.20.035. The Securities Division intends to order Respondent to cease and desist from violating the Securities Act of Washington, to deny any future securities registration applications by Respondent, to impose an administrative fine, and to charge investigative costs. Respondent has a right to request a hearing on the Statement of Charges.


Chalice Investments - S-18-2534-19-SC01 - Statement of Charges

On March 13, 2020, the Securities Division entered a Statement of Charges against Woodinville-based Chalice Investments, LLC (“Chalice”), Haystack 4Life, LLC (Haystack 4Life), Haystack Caps, LLC (“Haystack Caps”), as well as their principal Jeffray Lewis (“Lewis”) (collectively, “respondents”). Lewis intended Chalice to be a holding company for several marijuana-related businesses. The Statement of Charges alleges that Lewis sold $60,000 of interests in Chalice to a Washington couple. The Statement of Charges also alleges that Lewis offered interests in Haystack 4Life, and Haystack Caps in an effort to persuade a supplier to provide Lewis with more time to pay money owed to the supplier. The Division alleges that respondents violated the Washington State Securities Act by engaging in the conduct described above. The Statement of Charges gives notice of the Division’s intent to order the respondents to cease and desist from violating the Act. The Statement of Charges also gives notice of the Division’s intent to order the respondents to reimburse the Division its investigative costs, and to pay fines. The respondents may request an administrative hearing on the Statement of Charges.


Hong, Joseph - S-19-2798-20-SC01 - Statement of Charges

On March 9, 2020, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Deny Future Registrations, Impose Fines, and Charge Costs (“Statement of Charges”) against Respondent Suk Jin Hong, a/k/a Joseph Hong (CRD #6342504).

In the Statement of Charges, the Securities Division alleges that the Respondent engaged in dishonest and unethical practices in the securities business by (a) knowingly overdrafting his Merrill Lynch brokerage account and transferring the proceeds to another financial institution without reasonably believing he would be able to repay the overdraft, and (b) failing to disclose the existence of a securities account to his employing firm and obtain the firm’s written consent to maintain the account. The Statement of Charges gives notice of the Securities Division’s intent to enter an order to cease and desist from violations of the Securities Act of Washington, to impose a fine of $5,000, to charge investigative costs of $1,000, and to deny any of the Respondent’s future investment adviser representative or securities salesperson applications for registration. The Respondent has the right to request a hearing on the Statement of Charges.

A Final Order was entered regarding this matter on April 21, 2020.


Roomescape Kft. - S-19-2831-20-CO01 - Consent Order

On March 6, 2020, the Securities Division entered into a Consent Order with Roomescape Kft. (Respondent). In the Consent Order, the Securities Division alleged that the Respondent violated the Franchise Investment Protection Act by offering and selling an escape room franchise in Washington under the brand name Fox in a Box, while not registered to do so. Without admitting or denying the Securities Division’s allegations, the Respondent agreed to cease and desist from the registration and franchise disclosure document portions of the Franchise Investment Protection Act. The Respondent agreed to pay investigative costs of $500 and waived its right to a hearing and judicial review of the matter.


RChain Cooperative and Lucius Gregory Meredith - S-18-2463-20-CO01 - Consent Order

On February 28, 2020, the Securities Division entered into a Consent Order with RChain Cooperative and Lucius Gregory Meredith (“Respondents”). In the Consent Order, the Securities Division alleged that the Respondents raised approximately $30 million through the sale of a cryptographic token named RHOC in violation of the registration and anti-fraud provisions of the Securities Act of Washington. In settling the matter, the Respondents neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act. RChain Cooperative agreed to pay a fine of $50,000 and Lucius Gregory Meredith agreed to pay a fine of $25,000. The Respondents also agreed to reimburse the Securities Division $20,000 for its costs of investigation. The Respondents waived their right to a hearing and to judicial review of the matter.


Dai Lam Phuong, a.k.a. Dan Phuong and d.b.a. Fortpoint Investment Management - S-19-2762-20-SC01 - Statement of Charges

On February 26, 2020, the Securities Division entered a Statement of Charges against Respondent Dai Lam Phuong, a.k.a. Dan Phuong and d.b.a. Fortpoint Investment Management. In the Statement of Charges, the Securities Division alleged that the Respondent violated the Securities Act by acting as an investment adviser and/or an investment adviser representative while not registered to do so and failing to make available books and records. The Securities Division intends to order Respondent to cease and desist from violating the Securities Act, to impose an administrative fine, and to charge investigative costs. The Respondent has a right to request a hearing on the Statement of Charges.

A Final Order was entered regarding this matter on March 26, 2020.


Burgerim Group USA INC - S-20-2836-20-FO01 - Final Order

On February 13, 2020, the Securities Division issued an Entry of Findings of Fact and Conclusions of Law and Final Order Revoking Effectiveness of Registration Statement (“Final Order”) against Burgerim Group USA, Inc. (“Respondent”). The Securities Division previously entered a Stop Order against the Respondent on January 14, 2020. The Securities Division finds that Respondent violated the Franchise Investment Protection Act of Washington (“FIPA”) when it failed to amend its registration statement filed with the Securities Division within a reasonable time after the material adverse change in its financial condition and material change in its franchise disclosure document in light of its move to hire insolvency counsel to restructure its debts and appoint a Chief Restructuring Officer, and its intention to file Chapter 11 bankruptcy. The Securities Division also finds that this order is in the public interest, and the current disclosure document, as registered with the Securities Division, would work or tend to work as a fraud upon purchasers. Respondent has the right to request judicial review on the Final Order. The Stop Order remains in effect.


Asveris – S-19-2603-20-FO01 - Final Order

On February 11, 2020, the Securities Division entered a Final Order to Cease and Desist against Patrick Lawrence Kane d/b/a Asveris (“Respondent”). The Securities Division previously entered a Statement of Charges against the Respondent on January 8, 2020. The Final Order finds that Respondent violated the Franchise Investment Protection Act of Washington (“FIPA”) by offering franchises to Washington residents while not registered with the Division, and for making misleading financial performance representations. The Securities Division orders Respondent to cease and desist from violating the registration and violations sections of FIPA. Respondent has the right to request judicial review of the Final Order.


The Sound Mortgage Broker, LLC, Rochester 1-8, LLC and Bruce Philip Hills - S-18-2571-19-SC01 - Statement of Charges

On February 7, 2020, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Impose a Fine, and to Charge Costs (Statement of Charges) against The Sound Mortgage Brokers, LLC, Rochester 1-8, LLC, and Bruce Phillip Hills, a/k/a Phil Hills (Respondents). The Statement of Charges alleges that Respondents violated the Securities Act of Washington when they offered and sold about $132,250 of unregistered securities to a Washington investor. The Statement of Charges also alleges that Respondents violated the anti-fraud provision of the Securities Act by failing to disclose material information to investors. The Securities Division intends to order Respondents to cease and desist from violating the Securities Act of Washington, to impose an administrative fine, and to charge investigative costs. Respondents each have a right to request a hearing on the Statement of Charges.


Solium Financial Services LLC - S-20-2839-20-CO01 - Consent Order

On January 23, 2020, the Securities Division entered into a Consent Order with Respondent Solium Financial Services LLC (SFS). In connection with an investigation conducted by a multi-state taskforce of members of the North American Securities Administrators Association, the Securities Division alleged that from at least January 2009 to June 17, 2019, SFS acted as an unregistered broker-dealer in violation of RCW 21.20.040(1) when it transmitted orders for employee-participants residing in Washington as part of its equity plan administration software service for employers. SFS, without admitting or denying the findings of fact and conclusions of law, agreed to cease and desist from violations of RCW 21.20.040(1) and to pay $33,303.02 in fines and $450.00 in registration fees. SFS waived its right to a hearing and to judicial review of the matter.


American Beef Operations, LLC - S-19-2751-20-CO01 - Consent Order

On January 22, 2020, the Securities Division entered into a Consent Order with Respondent American Beef Operations, LLC. The Respondent’s principal place of business is Mercer Island, Washington. In the Consent Order, the Securities Division alleged that the Respondent offered and sold approximately $5.3 million worth of unregistered ABO LLC membership interests to more than 100 investors, including many Washington investors. The Securities Division alleged that the Respondent misrepresented the likely return on the investment and failed to disclose material information about the investment. Without admitting or denying the Securities Division’s allegations, the Respondent agreed to cease and desist from violating the registration and anti-fraud provisions of the Securities Act of Washington. The Respondent also waived its right to a hearing and to judicial review of the matter.


MotoVentures, Inc. - S-19-2704-19-CO01 - Consent Order

On January 22, 2020, the Securities Division entered into a Consent Order with MotoVentures, Inc.

The Securities Division alleged that MotoVentures violated the registration and disclosure document provisions of the Franchise Investment Protection Act of Washington, in connection with the company’s sale of a motorcycle training franchise to two Washington residents.

Without admitting or denying the Securities Division’s allegations, MotoVentures agreed to cease and desist from violating the Franchise Investment Protection Act of Washington. MotoVentures further agreed to pay $1,000 in investigative costs and waived its right to a hearing and judicial review of the matter.


iCRYO Franchise Systems LLC - S-19-2814-20-CO01 - Consent Order

On January 17, 2020, the Securities Division entered into a Consent Order with Respondent iCRYO Franchise Systems LLC (Respondent). The Respondent offers a franchise system for providing cryotherapy. The Respondent’s principal place of business is Houston, Texas. In the Consent Order, the Securities Division alleged that Respondent violated the Franchise Investment Protection Act by offering a franchise and providing financial performance representations that were outside the Franchise Disclosure Document and by failing to disclose material information about the franchise. Without admitting or denying the Securities Division’s allegations, the Respondent agreed to cease and desist from violating the disclosure provisions of the Franchise Investment Protection Act. The Respondent also agreed to pay investigative costs of $500 and waived its right to a hearing and judicial review of the matter.


Burgerim Group USA, Inc – S-20-2836-20-SO01 - Stop Order

On January 14, 2020, the Securities Division entered a Stop Order Revoking Effectiveness of Registration Statement against Burgerim Group USA, Inc. (“Respondent”). The Securities Division alleges that Respondent violated the Washington Franchise Investment Protection Act (“FIPA”) when it failed to amend its registration statement filed with the Securities Division within a reasonable time after the material adverse change in its financial condition and material change in its franchise disclosure document in light of its move to hire insolvency counsel to restructure its debts and appoint a Chief Restructuring Officer, and its intention to file Chapter 11 bankrupcy. The Securities Division also finds that this order is in the public interest, and the current disclosure document, as registered with the Securities Division would work or tend to work as a fraud upon purchasers. Respondent has the right to request a hearing on the Stop Order.

A Final Order was entered regarding this matter on February 13, 2020.


Patrick Lawrence Kane d/b/a Asveris - S-19-2603-20-SC01 - Statement of Charges

On January 8, 2020, the Securities Division Statement of Charges and Notice of Intent to Enter Order to Cease and Desist against Patrick Lawrence Kane d/b/a Asveris (“Respondent”). The Securities Division alleges that Respondent violated the Washington Franchise Investment Protection Act (“FIPA”) by offering franchises to Washington residents while not registered with the Division, and for making misleading financial performance representations while doing so. The Securities Division intends to order Respondent to cease and desist from violating the registration and violations sections of FIPA. Respondent has the right to request a hearing on the Statement of Charges.

A Final Order was entered regarding this matter on February 11, 2020.


Bonchon Franchise LLC - S-19-2760-19-CO01 - Consent Order

On January 6, 2020, the Securities Division entered into a Consent Order with Bonchon Franchise, LLC. In the Consent Order, the Securities Division alleged that Bonchon Franchise, LLC violated the Franchise Investment Protection Act of Washington by using a materially inaccurate Franchise Disclosure Document to sell its franchise. Without admitting or denying the Division’s allegations, Bonchon Franchise, LLC agreed to cease and desist from violating the Franchise Investment Protection Act, and to pay $250 towards the costs of the investigation. Bonchon Franchise, LLC agreed to waive their rights to a hearing and judicial review of this matter.