Orders From Other Years
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Charles Richard Burgess, a/k/a Dick Burgess – S-20-2861-21-SC01 - Statement of Charges
On December 17, 2021, 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 Respondent Charles Richard Burgess, a/k/a Dick Burgess (Burgess), a resident of Vancouver, Washington. The Statement of Charges alleges that Burgess violated the securities registration, investment adviser registration, and anti-fraud provisions of the Securities Act of Washington when he offered and sold participation in an unregistered pooled investment vehicle, which he calls “the pool.” Between October 2013 and April 2021, Burgess offered and sold approximately $6.3 million of investments in the pool to 40 investors, most of whom were Washington residents. Burgess offered and sold participation in the pool to friends, family, and to friends or family of existing pool participants. Burgess failed to disclose material information to investors related to the pool, including the specific risks of investing in a pooled investment vehicle, the investment strategy of the pool, the number of pool participants, and the amount of funds in the pool. Burgess also failed to disclose to investors that his strategy of investing pool funds in stock and options was high risk. In addition, in his management of the pool, Burgess sent monthly statements to investors that falsely represented that the pool was successful, and that investors were making a consistent profit. Further, Burgess used funds from the pool to pay himself excessive fees, to pay his own personal expenses, and to make Ponzi payments to investors.
Despite managing a pooled investment vehicle in which he had custody of client funds, Burgess has never been registered as an investment adviser. Further, Burgess failed to comply with applicable investment adviser laws and rules by, among other things, paying himself unauthorized fees and failing to prepare audited financials of the pool. The Statement of Charges gives notice of the Securities Division’s intent to order Burgess to cease and desist from violating the Securities Act of Washington, and to order the payment of a fine and costs. Burgess has a right to request a hearing on the Statement of Charges.
A Consent Order was entered regarding this matter on February 8, 2023.
Open Mind Generations (John C. Brandy) - S-19-2805-21-SC01 - Statement of Charges
On December 9, 2021 the Securities Division issued Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Impose a Fine, to Charge Costs, and to Deny Registrations (the “order”) (order no. S-19-2805-21-SC01) against Placerville, California resident John C. Brandy (“Brandy”) (CRD no. 4887385). The order alleges that, while he resided in Mill Creek, Washington, Brandy provided investment advisory services to multiple Washington residents without registration as an investment adviser or investment adviser representative with the Securities Division. The order also alleges that Brandy unethically promoted these services by failing to remove a certain designation from his website once he no longer held it. The order gives notice of the Division’s intent to order Brandy to cease and desist from violating the Securities Act of Washington, to pay a $5,000 fine, to charge $1,000 of its costs, and to deny any investment adviser and investment adviser representative registrations that Brandy may seek in the future. Brandy may request an administrative hearing on the order.
A Final Order was entered regarding this matter on March 11, 2022.
Freedom Capital Advisors Inc.; Ronald McCoy - S-21-3188-21-CO01 - Consent Order
On December 8, 2021, the Securities Division entered Consent Order S-21-3188-21-CO01 (“Consent Order”) with Freedom Capital Advisors Inc. (CRD# 161355) and Ronald McCoy (CRD# 1620066) (collectively, “Respondents”). In the Consent Order, Respondents agreed to cease and desist violating RCW 21.20.040(3) of the Washington Securities Act by conducting investment advisory business without registration. Respondents also agreed to pay a fine. Respondents waived their right to a hearing and judicial review of the matter.
Clifford Benjamin Sullivan - S-18-2479-21-CO01 - Consent Order
On December 7, 2021, the Securities Division entered into a Consent Order (“Order”) with Clifford B. Sullivan (“Respondent”). The Securities Division previously entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Charge Costs against Clifford B. Sullivan and others on August 17, 2021. The Consent Order alleges that the Respondent assisted in raising approximately $4.2 million dollars from the sale of real estate investments to approximately 24 investors, including approximately 17 Washington residents. Without admitting or denying the Securities Division’s allegations, Respondent agreed and is ordered to cease and desist from violations of RCW 21.20.040, the broker-dealer/securities salesperson registration provisions of the Securities Act. Respondent also agreed and is ordered to cease and desist from violations of RCW 21.20.010, the Unlawful offers, sales, purchases provision of the Securities Act. Respondent waived his right to a hearing and judicial review of the matter.
David Snavely (CRD 2030866) - S-20-2957-21-SC01 - Statement of Charges
On December 7, 2021, the Securities Division entered Statement of Charges and Notice Of Intent To Enter An Order To Deny Future Registrations, Impose A Fine, and Recover Costs S-20-2957-21-SC01 (“Statement of Charges”) against David Snavely (CRD 203066) (“Respondent”). The Statement of Charges alleges that while Respondent was employed at Cetera Advisors, LLC, he entered into unsuitable variable annuity transactions and misrepresented or omitted to state material facts in the offer and sale variable annuities. The Statement of Charges also alleges that as a result of Respondent’s unsuitable recommendations his clients, who were between the ages of 61 and 80, paid surrender fees of $222,179. The Statement of Charges gives notice of an intent to deny future registrations for two years, an intent to charge a fine of $30,000, and recover costs of at least $2,000. Respondent has a right to a hearing on the Statement of Charges.
A Consent Order was entered regarding this matter on September 28, 2022.
FBA Wealth Management, LLC - S-18-2487-21-CO01 - Consent Order
On November 28, 2021, the Securities Division entered Consent Order S-18-2487-21-CO01 (“Consent Order”) with FBA Wealth Management (CRD 146390) and Adi Benyishay (CRD 2183586) (“Respondents”). FBA Wealth Management (“FBA”) is registered as a Pennsylvania investment adviser. Benyishay is registered as an investment adviser representative and was the president of FBA. While Benyishay was the president of FBA, Respondents violated the financial reporting requirement of the investment advisory rules by failing to timely file its balance sheets for three years. In the Consent Order Respondents agreed to pay a fine of $2,000 and costs of $1,000. FBA is now under new management and submitted a new application to be registered as an investment adviser in Washington State.
24XploitTrade - S-21-3099-21-FO01 - Final Order
On November 17, 2021, the Securities Division issued a Final Order to Cease and Desist, to Impose Fines, and to Charge Costs (Final Order) against Respondent 24XploitTrade.
The Final Order finds that 24XploitTrade defrauded a Washington resident by falsely claiming that its cryptocurrency trading program could earn returns of 930% in one week, then refusing the Washington resident to withdraw their purported earnings unless they paid 20% of the amount upfront as a withdrawal fee. The Final Order further finds that 24XploitTrade violated the Securities Act of Washington by offering and selling an unregistered security in the form of its cryptocurrency trading program.
In the Final Order, the Securities Division orders 24XploitTrade cease and desist from violations of the Securities Act of Washington, and to pay a fine of $20,000 and investigative costs of $1,000. 24XploitTrade has a right to request judicial review of the Final Order.
Nittrex Capital Ltd., d/b/a Nittrex Digital Asset Fund, d/b/a Nittrex Fund, d/b/a Nittrex - S-21-3167-21-FO01 - Final Order
On November 9, 2021, the Securities Division entered a Final Order against Respondent Nittrex Capital Ltd., d/b/a Nittrex Digital Asset Fund d/b/a Nittrex Fund, d/b/a Nittrex (“Respondent”). The Final Order found that the Respondent violated the anti-fraud section of the Securities Act of Washington when it offered and sold approximately $500,000 worth of cryptocurrency investments to a Washington resident. The Final Order ordered the Respondent to cease and desist from any further violations, to pay a $10,000 fine and to pay $2,000 in costs. The Respondent has the right to request judicial review of the Final Order.
Glen Lesnick - S-20-2920-21-CO01 - Consent Order
On November 4, 2021, the Securities Division entered into a Consent Order with Glen Lesnick. The Division had previously issued a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Charge Costs against World of Crypto Mining (“WOCM”) d.b.a. worldofcryptomining.com, Vincent Dorf, and Glen Lesnick (collectively “Respondents”). In the consent order, the Division alleged that in 2019 and 2020, the Respondents offered a Washington resident (the “Resident”) the opportunity to invest with WOCM, a purported crypto mining operation in Switzerland run by Vincent Dorf. The Resident was told that he could make thirty to ninety day short term loans to WOCM for use in its cloud mining operation. Respondents told the Resident he could make 1% interest a day or as much as a 40% return per month on his investment. WOCM raised approximately $10,000 from the Resident and failed to repay the Resident’s principal or promised interest. Respondents failed to disclose material information about the investment to the Resident such as WOCM’s prior business history or financial statements. Respondents represented exorbitant rates of return on the WOCM loans without a reasonable basis for the claims. Respondent Lesnick solicited the Resident’s investment and, in exchange, expected to receive a thirty per cent commission. The Securities Division alleged that the Respondents offered unregistered securities and violated the anti-fraud provision of the Securities Act of Washington. The Securities Division alleged that the Respondent Lesnick acted as an unregistered broker or securities salesperson in connection with the offer of the WOCM loan investments. Without admitting or denying the Securities Division’s findings of fact or conclusions of law, Lesnick agreed to cease and desist from violating the Securities Act of Washington and to pay a fine of $1,500 and investigation costs of $2,500. Lesnick waived his right to a hearing and judicial review of this matter.
Blake E. Robbins – S-18-2479-21-FO01 - Final Order
On November 4, 2021, the Securities Division entered a Final Order (“Order”) against Blake E. Robbins (“Respondent”). The Securities Division previously entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Charge Costs against Blake E. Robbins and others on August 17, 2021. The Final Order alleges that the Respondent assisted in raising approximately $4.2 million dollars from the sale of real estate investments to approximately 24 investors, including approximately 17 Washington residents. Respondent is ordered to cease and desist from violations of RCW 21.20.040, the broker-dealer/securities salesperson registration provisions of the Securities Act. Respondent is also ordered to cease and desist from violations of RCW 21.20.010, the Unlawful offers, sales, purchases provision of the Securities Act. Respondent is ordered to pay a fine of $80,000 and investigative costs of $15,000. Respondent has the right to petition the superior court for judicial review of this agency action.
Lia Langston d.b.a. Westridge Group, LLC and d.b.a. Westridge Group, Inc. – S-21-3084-21-FO01 - Final Order
On October 28, 2021, the Securities Division entered a Final Order against Respondent Lia Langston d.b.a. Westridge Group, LLC and d.b.a. Westridge Group, Inc. (“Respondent”). The Securities Division had previously alleged in Statement of Charges S-21-3084-21-SC01 that the Respondent and AM-PM DOC, LLC and Ramsey Habeeb Saffouri offered and/or sold an unregistered franchise to a Washington resident. The Securities Division alleged that the Respondent misrepresented and/or failed to disclose material facts in the offer of a franchise. The Securities Division alleged that the Respondent acted as an unregistered franchise broker in the offer of a franchise. The Securities Division ordered the Respondent to cease and desist from violations of RCW 19.100.020, RCW 19.100.170, and 19.100.140, the franchise registration, “violations,” and franchise broker registration sections of the Franchise Investment Protection Act. The Respondent has a right to request judicial review of the Final Order.
Debtix Enterprise Ltd. d/b/a Coinchainbtc.com – S-21-3081-21-FO01 - Final Order
On October 22, 2021, the Securities Division entered a Final Order against Respondent Debtix Enterprise Ltd. d/b/a Coinchainbtc.com (Respondent). The Final Order found that the Respondent violated the anti-fraud section of the Securities Act of Washington through the sale of cryptocurrency investments to a Seattle resident who lost more than $10,000. The Final Order ordered the Respondent to cease and desist from any further violations, to pay a $10,000 fine and to pay $1,000 in costs. The Respondent has the right to request judicial review of the Final Order.
Celsius Network Inc., Celsius Network Limited, Celsius US Holding LLC, Celsius Network LLC, Celsius Lending LLC - S-21-3212-21-SC01 - Statement of Charges
On October 20, 2021, the Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Charge Costs against Celsius Network Inc., Celsius Network Limited, Celsius US Holding LLC, Celsius Network LLC, Celsius Lending LLC (collectively, the “Respondents” or “Celsius”). The Securities Division alleged that from June 2018 to February 2019, and again from January 2020 to July 2021, Celsius offered and sold unregistered securities in the form of the Earned Interest Program (“EIP”) to at least 1,400 Washington residents valued at over $137 million (as of the end of August 29, 2021). The Securities Division alleged that Celsius represented to EIP customers that they could earn interest income on certain virtual currencies that they deposited into their accounts. The Division alleged that customers could access the EIP through Celsius’ own platform, or through partner platforms through Celsius API Program. The Division further alleged that to generate this interest income, Celsius used EIP virtual currencies to lend to institutional borrowers and for proprietary trading, among other activities. In offering and selling the EIP, the Division alleged that Celsius failed to disclose material information about EIP, including the scope and identity of the institutional borrowers and information related to Celsius’ financial state. The Securities Division alleged that the Respondents sold unregistered securities, acted as unregistered securities salespersons, and violated the anti-fraud provision of the Securities Act of Washington. The Securities Division gave notice of its intent to issue an order to Respondents to permanently cease and desist from violating the Securities Act of Washington, to collect fines, and to charge costs. The Respondents have a right to request a hearing on the Statement of Charges.
Nittrex Capital Ltd., d/b/a Nittrex Digital Asset Fund, d/b/a Nittrex Fund, d/b/a Nittrex - S-21-3167-21-SC01 - Statement of Charges
On October 14, 2021, 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 Nittrex Capital Ltd., d/b/a Nittrex Digital Asset Fund d/b/a Nittrex Fund, d/b/a Nittrex (“Respondent”). The Statement of Charges alleges that the Respondent violated the anti-fraud provisions of the Securities Act of Washington when it offered and sold approximately $500,000 worth of cryptocurrency investments to a Washington resident. 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 to charge costs. The Respondent has a right to request a hearing on the Statement of Charges.
A Final Order was entered regarding this matter on November 9, 2021.
Jacqueline Jacobsen – S-20-2932-21-CO01 - Consent Order
On October 12, 2021, the Securities Division (the “Division”) entered into a Consent Order with Jacqueline Jacobsen to settle a previous enforcement order (Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Charge Costs, to Impose a Fine, and to Suspend Registrations, order number S-20-2932-21-SC01; the “Statement of Charges”) that the Division entered on June 1, 2021. In the Statement of Charges, the Division alleged that Jacobsen, while registered as an investment adviser representative and securities salesperson of Morgan Stanley Smith Barney (“Morgan Stanley”), had misused a Morgan Stanley program that provided for, among other things, bonuses to be paid to office staff. The Division alleged that this was unethical conduct prohibited by the Washington State Securities Act (the “Act”), and gave notice of its intent to impose a number of sanctions. In the Consent Order, Jacobsen agreed and is ordered to cease and desist from violating the Act. Jacobsen also agreed to pay a $5,000 fine and to reimburse $1,500 of the Division’s investigative costs. Jacobsen also agreed to forego all fees attributable to her Washington clients for a period of six months, and not to solicit or accept new Washington clients for six months. Jacobsen also waived her right to an administrative hearing on and judicial review of this matter by entering into the Consent Order.
Trading Ventures Group LLC - S-21-3080-21-FO01 - Final Order
On October 11, 2021, the Securities Division entered a Final Order against Respondent Trading Ventures Group LLC (Respondent). The Final Order found that Trading Ventures Group LLC violated the Washington Commodity Transaction Act, including the anti-fraud section of the Act, and ordered the Respondent to cease and desist from any further violations. Trading Ventures Group LLC has the right to request judicial review of the Final Order.
Bankers Life & Casualty Company - S-12-0985-21-CO02 - Amended Consent Order
On October 8, 2021, the Securities Division entered into an Amended Consent Order for Bankers Life & Casualty Company. This Amended Consent Order modifies a previously entered Consent Order S-12-0985-12-SC01 against Bankers Life & Casualty Company dated July 23, 2012. Included in the Original Consent Order was a requirement that the Respondent prohibit insurance-only agents from engaging in certain fact-finding conduct, including requesting suitability information related to a consumer’s investments. In accordance with guidance provided by that National Association of Insurance Commissioners, requesting such suitability information has since been deemed reasonable and necessary and is consistent with standard industry practice. In response, the Securities Division has agreed to an Amended Consent Order, which will allow the Respondent to comply with current standard-industry practice while retaining all other provisions of the Original Consent Order. The Respondent has waived its right to request a hearing and judicial review of the Amended Consent Order.
Dank’s Wonder Emporium, LLC; DWE Franchise LLC; and DWE Franchise III, Inc. - S-21-3133-21-CO01 - Consent Order
On October 7, 2021, the Securities Division entered into a Consent Order with Dank’s Wonder Emporium, LLC; DWE Franchise LLC; and DWE Franchise III, Inc. (Respondents). In the Consent Order, the Securities Division alleged that Respondents Dank’s Wonder Emporium, LLC and DWE Franchise LLC violated the Franchise Investment Protection Act by offering franchises in Washington, while not registered to do so. The Consent Order also alleged that the Dank’s Wonder Emporium, LLC and DWE Franchise III, Inc. violated the Securities Act of Washington by offering securities to the public while not registered to do so. Without admitting or denying the Securities Division’s allegations, the Respondents agreed to cease and desist from violating the Franchise Investment Protection Act and the Securities Act of Washington. The Respondents agreed to pay investigative costs of $2,000 and waived their right to a hearing and judicial review of the matter.
24XploitTrade – S-21-3099-21-SC01 - Statement of Charges
On October 6, 2021, the Securities Division issued a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Impose Fines, and Charge Costs (Statement of Charges) against Respondent 24XploitTrade.
The Statement of Charges alleges that 24XploitTrade defrauded a Washington resident by falsely claiming that its cryptocurrency trading program could earn returns of 930% in one week, then refusing the Washington resident to withdraw their purported earnings unless they paid 20% of the amount upfront as a withdrawal fee. The Statement of Charges further alleges that 24XploitTrade violated the Securities Act of Washington by offering an selling an unregistered security in the form of its cryptocurrency trading program.
The Securities Division intends to order that 24XploitTrade cease and desist from violations of the Securities Act of Washington. The Securities Division further intends to order that 24XploitTrade shall be liable for and shall pay a fine of $20,000 and investigative costs of $1,000. 24XploitTrade has a right to request a hearing on the Statement of Charges.
A Final Order was entered regarding this matter on November 17, 2021.
Smart Wash Franchise, LLC; Anthony Abboud – S-19-2796-21-CO01 - Consent Order
On September 30, 2021, the Securities Division entered into a Consent Order with Smart Wash Franchise, LLC and Anthony Abboud (Respondents). In the Consent Order, the Division alleged that Respondents violated the Franchise Investment Protection Act of Washington (the Act) by offering and selling unregistered franchises in Washington and failing to disclose material information related to the franchise. Without admitting or denying the allegations, Respondents agreed to cease and desist from violating the Act, and to pay $800 in investigative costs. Respondents waived their rights to a hearing and judicial review of this matter.
Avalon Investment & Securities Group, Inc. – S-20-3064-21-SC01 - Statement of Charges
On September 28, 2021, the Securities Division entered a Statement of Charges and Notice of Intent to Revoke Registration and to Deny Future Registrations (the “Order”) against Muscle Shoals, Alabama-based Avalon Investment & Securities Group, Inc. (“Avalon”). Avalon has been registered as a broker-dealer with the Securities Division since 2011. The Order alleges that the Financial Industry Regulatory Authority (“FINRA”) suspended Avalon after the firm failed to file a certain statement of income report, and that FINRA expelled Avalon when it failed to request the termination of its suspension or a hearing in the period allowed by FINRA rules. The Order further alleges that FINRA’s expulsion of Avalon justifies the revocation of Avalon’s broker-dealer registration and the denial of any broker-dealer or investment adviser registration that Avalon may seek in the future by the Securities Division. Avalon may request an administrative hearing on the Order.
A Final Order was entered regarding this matter on January 1, 2022.
Robyn D. Whitlow, Thomas J. Boesen, American Alternative Investments, Gregory C. Minear, and James D. Helgeson – S-19-2672-20-SC03 - Statement of Charges
On September 28, 2021, 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 Robyn D. Whitlow (“Whitlow”), Thomas J. Boesen (“Boesen”), American Alternative Investments (“AAI”), Gregory C. Minear (“Minear”), and James D. Helgeson (“Helgeson”) (collectively, “Respondents”). The Statement of Charges alleges that Respondents Whitlow, Boesen, and AAI offered and sold unregistered securities in Washington using a nationwide network of unregistered sales agents, including bad actors. These unregistered sales agents included Respondents Minear and Helgeson, who were paid commissions by AAI for the securities they sold.
The securities offered and sold by Respondent AAI included those offered by 1 Global Capital, LLC and entities affiliated with Resolute Capital Partners, Ltd., LLC. Respondents were not registered as broker-dealers or securities salespersons, and Respondents Whitlow, Boesen, and AAI failed to ensure their agents were registered as they made offers and sales of these securities in this state. The Statement of Charges further alleges that Respondents made false or misleading statements or did not provide material information necessary to make the offer and sale of these securities not misleading over the course of these solicitations.
The Securities Division intends to order Respondents to cease and desist from violating the Securities Act of Washington, that Respondents Whitlow, Boesen, and AAI to pay a fine of $110,000.00, Respondent Minear to pay a fine of $7,500, Respondent Helgeson to pay a fine of $3,500. Additionally, the Securities Division intends to order Respondents Whitlow, Boesen, and AAI to pay investigative costs of at least $21,868.00, Respondent Minear to pay investigative costs of at least $750.00, and Respondent Helgeson to pay investigative costs of at least $750.00. Respondents have a right to request a hearing on the Statement of Charges.
A Consent Order was entered regarding this matter on July 11, 2022.
A Consent Order as to Gregory Minear was entered on May 26, 2022.
Jaroensabphayanont, Narongdej dba NMJ Group - S-20-2913-21-FO01 - Final Order
On September 28, 2021, the Securities Division entered a Final Order to Cease and Desist, to Deny Future Registrations, to Impose a Fine, and to Charge Costs (Final Order) against Narongdej Jaroensabphayanont dba NMJ Group (Jaroensabphayanont). From May 2008 to November 2019, Jaroensabphayanont was registered as a securities salesperson with Voya Financial Advisors, Inc. (CRD 5393272). The Final Order concludes that Jaroensabphayanont violated the registration and anti-fraud provisions of the Securities Act of Washington through the sale of at least $200,000 of promissory notes to six Washington investors. The Final Order further concludes that Jaroensabphayanont engaged in dishonest and unethical practices in the securities business at the time he was registered as a securities salesperson in Washington State when he deceived investors, sold away, and borrowed funds from a customer. Jaroensabphayanont has a right to request judicial review of the Final Order.
AM-PM DOC, LLC (AM PM DOC LLC), Ramsey Habeeb Saffouri, and Lia Langston d.b.a. Westridge Group, LLC and d.b.a. Westridge Group, Inc. - S-21-3084-21-SC01 - Statement of Charges
On September 27, 2021, the Securities Division entered a Statement of Charges against Respondents AM-PM DOC, LLC, Ramsey Habeeb Saffouri, and Lia Langston d.b.a. Westridge Group, LLC and d.b.a. Westridge Group, Inc. (“Respondents”). The Securities Division alleged that AM-PM DOC, LLC and Ramsey Habeeb Saffouri offered and/or sold an unregistered franchise to a Washington resident. The Securities Division alleged that the Respondents misrepresented and/or failed to disclose material facts in the offer of a franchise. The Securities Division alleged that the Respondent Lia Langston acted as an unregistered franchise broker in the offer of a franchise. The Securities Division intends to order the Respondents to cease and desist from violations of RCW 19.100.020, RCW 19.100.170, and 19.100.140, the franchise registration, “violations,” and franchise broker registration sections of the Franchise Investment Protection Act. The Respondents each have an opportunity for hearing in this matter.
A Consent Order was entered regarding this matter on March 17, 2022.
A Final Order was entered regarding this matter on October 28, 2021.
Debtix Enterprise Ltd. d/b/a Coinchainbtc.com - S-21-3081-21-SC01 - Statement of Charges
On September 24, 2021, 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 Debtix Enterprise Ltd. d/b/a Coinchainbtc.com (Respondent). The Statement of Charges alleges that the Respondent violated the anti-fraud provisions of the Securities Act of Washington through the sale of cryptocurrency investments to a Seattle resident who lost more than $10,000. 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 to charge costs. The Respondent has a right to request a hearing on the Statement of Charges.
A Final Order was entered regarding this matter on October 22, 2021.
BlockFi Inc., BlockFi Trading LLC, and BlockFi Lending LLC - S-21-3170-21-SC01 - Statement of Charges
On September 23, 2021, the Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Charge Costs against BlockFi Inc., BlockFi Trading LLC, and BlockFi Lending LLC (collectively, the “Respondents” or “BlockFi”). The Securities Division alleged that beginning in December 2019 and continuing to the present, BlockFi offered and sold unregistered securities in the form of BlockFi Interest Accounts (“BIAs”) to at least 12,100 Washington residents valued at over $343 million (as of the end of July 2021). The Securities Division alleged that BlockFi represented to BIA customers that they could earn interest income on certain virtual currencies that they deposited into their BIAs, and that to generate this interest income, BlockFi used BIA virtual currencies to lend to institutional borrowers, among other activities. The Securities Division alleged that the Respondents sold unregistered securities, acted as unregistered securities salespersons, and violated the anti-fraud provision of the Securities Act of Washington. The Securities Division gave notice of its intent to issue an order to Respondents to permanently cease and desist from violating the Securities Act of Washington, to collect fines, and to 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 February 17, 2022.
Pinnacle Opportunity Team, LLC – S-19-2652-21-SC01 - Statement of Charges
On September 16, 2021, the Securities Division entered a Statement of Charges against Pinnacle Opportunity Team, LLC (“Pinnacle”), a Washington LLC, and its managing member, Ryan A. Purdie (“Purdie”). Purdie is a California-registered investment adviser representative. The Securities Division alleges that during 2019, Purdie offered and sold membership interests in Pinnacle totaling at least $70,000 to at least four New York investors. Pinnacle represented that it would use the investors’ funds to build and operate a marijuana processing facility. Pinnacle has never been registered to sell its securities in Washington. The Securities Division alleges that Purdie misrepresented the likely return on the investment and failed to disclose material information regarding the investment. The Securities Division alleged that Respondents offered and sold unregistered securities and violated the 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 against Purdie. The Respondents each have the right to request a hearing on this matter.
A Consent Order was entered regarding this matter on September 6, 2022.
GBC Food Services, LLC d/b/a Yummi Sushi - S-21-3158-21-CO01 - Consent Order
On August 31, 2021, the Securities Division entered into a Consent Order with GBC Food Services, LLC d/b/a Yummi Sushi (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 $1,500 and waived its right to a hearing and judicial review of the matter.
Chu Yu Hsiang Co., Ltd. d/b/a Ding Tea - S-21-3145-21-CO01 - Consent Order
On August 31, 2021, the Securities Division entered into a Consent Order with Chu Yu Hsiang Co., Ltd. d/b/a Ding Tea (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 violating the registration and franchise disclosure document portions of the Franchise Investment Protection Act. The Respondent agreed to pay investigative costs of $3,500 and waived its right to a hearing and judicial review of the matter.
Hillstone Capital, LLC, Hillstone Real Estate Fund I, LLLP, Hillstone Pinnacle Fund I, LLLP, HS REO 101, LLC, HS REO 102, LLC, HS REO 104, LLC, HS REO 105, LLC, HS REO 109, LLC, HS REO 112, LLC, HS REO 701, LLC, FlypShield, LLC, Blake E. Robbins, Christina M. Robbins, and Clifford B. Sullivan - S-18-2479-21-SC01 - Statement of Charges
On August 17, 2021, the Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Charge Costs against Hillstone Capital, LLC, Hillstone Real Estate Fund I, LLLP, Hillstone Pinnacle Fund I, LLLP, HS REO 101, LLC, HS REO 102, LLC, HS REO 104, LLC, HS REO 105, LLC, HS REO 109, LLC, HS REO 112, LLC, HS REO 701, LLC, FlypShield, LLC, Blake E. Robbins, Christina M. Robbins, and Clifford B. Sullivan (collectively “Respondents”). The Statement of Charges alleges that the Respondents raised approximately $4.2 million dollars from the sale of real estate investments to approximately 24 investors, including approximately 17 Washington residents. The Statement of Charges alleges that the Respondents acted as unregistered broker-dealers and/or securities salespersons, that certain offerings were unregistered, and that the Respondents 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. 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 as to Christina M. Robbins was entered on March 17, 2022.
A Consent Order as to Clifford B. Sullivan was entered on December 7, 2021.
A Final Order as to Blake Robbins was entered on November 4, 2021.
Lory Meyerson – S-19-2776-20-CO02 - Consent Order
On August 16, 2021, the Securities Division entered into a Consent Order with Lory Meyerson (Respondent), a consultant for Dental Fix, Rx, LLC who was held out by the company as its director of sales until August 2016. The Securities Division alleged that Respondent acted as unregistered franchise broker in the offer and sale of a Dental Fix franchise to a Spokane resident, and that, in the offer and sale of this franchise, Respondent made untrue statements of material fact or omitted to state material facts to the franchisee necessary to make the statements, in light of the circumstances in which they were made, not misleading.
Without admitting or denying the Securities Division’s allegations, Respondent agreed to cease and desist from offering or selling franchises in violation of RCW 19.100.140, the franchise broker registration section of the Franchise Investment Protection Act of Washington. Respondent also agreed to cease and desist from violations of RCW 19.100.170, the violations section of the Franchise Investment Protection Act of Washington. Respondent agreed to pay to the Division a total of $281.25 in investigative costs and waived her rights to a hearing and judicial review of the matter.
The Securities Division previously entered into a Consent Order with Dental Fix, Rx, LLC and its former CEO, David Lopez, on June 3, 2021.
Jaroensabphaynont, Narongdej dba NMJ Group - S-20-2913-21-SC01 - Statement of Charges
On August 10, 2021, the Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, to Deny Future Registrations, to Impose Fines, and to Charge Costs against Narongdej Jaroensabphayanont dba NMJ Group (Jaroensabphayanont). From May 2008 to November 2019, Jaroensabphayanont was registered as a securities salesperson with Voya Financial Advisors, Inc. (CRD 5393272). The Statement of Charges alleges that Jaroensabphayanont violated the registration and anti-fraud provisions of the Securities Act of Washington through the sale of at least $200,000 of promissory notes from six Washington investors. The Statement of Charges further alleges that Jaroensabphayanont engaged in dishonest and unethical practices in the securities business at the time he was registered as a securities salesperson in Washington State when he deceived investors, sold away, and borrowed funds from a customer. The Securities Division gives notice of its intent to order Jaroensabphayanont to cease and desist from violating the Securities Act of Washington, to deny future registrations by Jaroensabphayanont, to collect a fine, and to charge costs. Jaroensabphayanont has a right to request a hearing on the Statement of Charges.
Symboli Blockchain, LLC and Robert Bevan Brian - S-19-2822-21-CO01 - Consent Order
On August 10, 2021, the Securities Division entered into a Consent Order with Symboli Blockchain LLC and Robert Bevan Brian (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 against the Respondents. The Securities Division alleged that in approximately June 2018, Brian solicited an investor to invest $35,000 in pre-ICO Symboli tokens that Brian represented that he personally owned and held in his crypto wallet, and that the investor could sell in approximately one month for a significant profit. In fact, Brian never held any Symboli tokens, as they never finished development. The Division further alleged that in December 2018, the Symboli token offering was advertised via general solicitation on the internet, including to Washington residents. The Securities Division alleged that the Respondents offered unregistered securities and 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 of Washington, and to pay a fine of $1,500 and investigative costs of $1,000. The Respondents waived their right to a hearing and to judicial review of the matter.
Providence Capital Partners - S-20-2987-21-CO01 - Consent Order
On August 10th, 2021, the Securities Division entered a consent order (“Consent Order”) with Providence Capital Partners LLC f.k.a. Omega Capital Advisor LLC (“Providence Capital”, CRD #143303) and its owner Terry Laxton (CRD #1197756) (collectively, “Respondents”). The Securities Division previously entered a Statement of Charges against Respondents, which alleged that Providence Capital failed to have a registered investment adviser representative for over six years in violation of WAC 460-24A-050(4) and also that Mr. Laxton held himself out to the public as an investment adviser representative while not registered in violation of RCW 21.20.040(4). After the Statement of Charges was issued, Mr. Laxton applied for registration as an investment adviser representative of Providence Capital. Pursuant to the Consent Order, Mr. Laxton agreed to cease and desist from future violation of RCW 21.20.040(4). Additionally, Respondents agreed to pay a fine and costs. Due to Respondents’ ability to pay, the costs and part of the fine were suspended contingent on future compliance with the Consent Order. Respondents waived their right to a hearing and judicial review of the matter.
Pioneer Square Advisors, LLC; Andrew Robbins – S-20-2984-21-CO01 - Consent Order
On August 10th, 2021, the Securities Division entered into Consent Order S-20-2984-21-CO01 (“Consent Order”) with Pioneer Square Advisors, LLC (“Pioneer Square”, CRD# 143609) and Andrew Robbins (CRD# 4245210) (collectively, “Respondents”). The Consent Order states that Andrew Robbins conducted investment advisory business without being registered in Washington between September 26, 2016, and December 4, 2020, in violation of RCW 21.20.040(3). The Consent Order additionally states that Pioneer Square failed to meet examination requirements in violation of WAC 460-24A-050 and failed to have a registered chief compliance officer in violation of WAC 460-24A-120(3). In the Consent Order, Respondents agreed to cease and desist from future violations of RCW 21.20.040, WAC 460-24A-050, and WAC 460-24A-120. Respondents also agreed to pay a fine of $25,000. Respondents waived their right to a hearing and judicial review of the matter.
Pink Baking Co. d.b.a. Kiki Bakery, Pin-Hsiu Lin, and Ming Chang Peng – S-20-3053-21-FO01 - Final Order
On August 6, 2021, the Securities Division entered a Final Order against Pink Baking Co. d.b.a. Kiki Bakery, Pin-Hsiu Lin, and Ming Chang Peng (“Respondents”). The Securities Division alleged that the Respondents sold at least one bakery store franchise in the state and charged $10,000 for the right to operate a Kiki Bakery. The Securities Division alleged that the Respondents failed to register the offer and sale of a franchise with the Securities Division and omitted to disclose material information to the franchisees such as financial statements. The Securities Division ordered the Respondents to cease and desist from violations of RCW 19.100.020 and RCW 19.100.170, the franchise Registration and Violations sections of the Franchise Investment Protection Act. The Respondents each have the right to request judicial review of the Final Order.
Pelicana F&B Management, Inc. d.b.a. Pelicana Chicken USA. – S-21-3160-21-CO01 - Consent Order
On August 5, 2021, the Securities Division entered into a Consent Order with Pelicana F&B Management, Inc. d.b.a. Pelicana Chicken USA (“Respondent”). The Securities Division alleged that the Respondent offered and/or sold an unregistered franchise to operate a Pelicana Chicken restaurant to a Washington resident. The Securities Division alleged that the Respondent misrepresented material facts when it stated in its Franchise Disclosure Document that it did not make any representations about a franchisee's future financial performance or the past financial performance of company-owned, affiliate-owned or franchised Pelicana Restaurants. The Respondent agreed and was ordered to cease and desist from violations of RCW 19.100.020 and RCW 19.100.170, the franchise registration and “violations” sections of the Franchise Investment Protection Act. Respondent reimbursed the Securities Division $2,200 for the cost of the investigation.
South Beach Capital Management, LLC; Richard Thomas - S-20-2936-21-CO01 - Consent Order
On July 28, 2021, the Securities Division entered into a consent order (“Consent Order”) with South Beach Capital Management, LLC (“South Beach”, CRD# 153451) and Richard Thomas (CRD# 1070461) (collectively, “Respondents”). The Securities Division previously entered a Summary Order to Suspend Registrations and Notice of Intent to Revoke Registrations, Impose Fines, and Charges Costs (“Summary Order”) against Respondents. The Summary Order alleged that the Respondents failed to file South Beach’s year-end balance sheet and its annual updating amendment to its Form ADV, in violation of WAC 460-24A-205 and WAC 460-24A-060. After the Summary Order was entered, Respondents filed to withdraw the investment adviser registration of South Beach. Pursuant to the Consent Order, Respondents agreed to pay a fine and costs. Respondents waived their right to a hearing and judicial review of the matter.
Sommers Financial Management, LLC; Adam Sommers – S-21-3157-21-CO01 - Consent Order
On July 27, 2021, the Securities Division entered Consent Order S-21-3157-21-CO01 (“Consent Order”) with Sommers Financial Management, LLC (CRD 153223) and Adam Sommers (CRD 2969821) (collectively, “Respondents”). In the Consent Order, Respondents agreed to cease and desist violating RCW 21.20.040(3) of the Washington Securities Act by conducting investment advisory business without registration. Respondents also agreed to pay a fine. Respondents waived their right to a hearing and judicial review of the matter.
Capital Management Associates LLC; James David Richardson - S-20-3023-21-CO01 - Consent Order
On July 21, 2021, the Securities Division entered into a Consent Order with Respondents Capital Management Associates LLC (“CMA”) and its principal, James David Richardson (“Richardson”). In the Consent Order, the Securities Division alleged that an unknown actor obtained access to Richardson’s computer and/or email accounts, accessed forms with client signatures, posed as two different CMA clients via email, and instructed Richardson to effectuate the sale and transfer of substantial amounts of assets from the accounts of the impersonated clients. The Securities Division alleged that CMA and Richardson violated the Securities Act of Washington and its accompanying regulations by (a) conducting trades at the unknown actor’s direction without actual client instructions to do so, and (b) failing to establish adequate written physical and cybersecurity policies and procedures relating to verification of client identities in response to unsolicited emails. In the Consent Order, CMA and Richardson neither admitted nor denied the Securities Division’s Findings of Fact and Conclusions of Law, but agreed to cease and desist from violating the Securities Act, and to pay a fine of $3,000 and investigative costs of $2,000. CMA and Richardson waived their right to a hearing and to judicial review of this matter.
Blueprint Information Products LLC; Pinpoint Local LLC - S-19-2818-20-CO01 - Consent Order
On July 14, 2021, the Securities Division entered into a Consent Order with Respondents Blueprint Information Products LLC (“Blueprint”) and Pinpoint Local LLC (“Pinpoint”). In the Consent Order, the Securities Division alleged that Blueprint and Pinpoint had violated the Franchise Investment Protection Act of Washington (“Franchise Act”) by offering and selling training courses bundled with “free franchises” without being appropriately registered to sell franchises, and by failing to provide purchasers with the required franchise disclosure document. The Securities Division further alleged that Blueprint and Pinpoint violated the antifraud provisions of the Franchise Act in connection with the sale of the training course by making unapproved and misleading financial performance representations, and by misleadingly stating or implying that purchasers would receive exclusive territories. In the Consent Order, Blueprint and Pinpoint neither admitted nor denied the Securities Division’s Findings of Fact and Conclusions of Law, but agreed to offer refunds to Washington training course purchasers for the full amount of the training course purchase. Blueprint and Pinpoint further agreed to cease and desist from violating the registration, disclosure document, and antifraud provisions of the Franchise Act, and to pay investigative costs of $5,000. Blueprint and Pinpoint waived their right to a hearing and to judicial review of this matter.
Guardian Data Systems, LLC, Lance J. Ott, Brett B. Taylor, and Richard D. Gilchrist - S-18-2496-20-CO01 - Consent Order
On July 14, 2021, the Securities Division entered into a Consent Order with Guardian Data Systems, LLC, Lance J. Ott, Brett B. Taylor, and Richard D. Gilchrist (Respondents). The Division had previously entered a Statement of Charges against Respondents. The Statement of Charges alleged that Respondents violated the Securities Act of Washington when they offered and sold at least $1,225,000 of unregistered securities to eight investors. The Statement of Charges also alleged that Respondents violated the anti-fraud provision of the Securities Act by failing to disclose material information to these investors. Without admitting or denying the Securities Division’s allegations, Respondents agreed to cease and desist from violations of the Securities Act, to pay a fine of $17,500, and to pay investigative costs of $7,000. Respondents each waived their right to a hearing and to judicial review of the matter.
Pink Baking Co. d.b.a. Kiki Bakery, Pin-Hsiu Lin, and Ming Chang Peng – S-20-3053-21-SC01 - Statement of Charges
On July 8, 2021, the Securities Division entered a Statement of Charges against Pink Baking Co. d.b.a. Kiki Bakery, Pin-Hsiu Lin, and Ming Chang Peng (“Respondents”). The Securities Division alleged that the Respondents sold at least one bakery store franchise in the state and charged $10,000 for the right to operate a Kiki Bakery. The Securities Division alleged that the Respondents failed to register the offer and sale of a franchise with the Securities Division and omitted to disclose material information to the franchisees such as financial statements. The Securities Division intends to order the Respondents to cease and desist from violations of RCW 19.100.020 and RCW 19.100.170, the franchise Registration and Violations sections of the Franchise Investment Protection Act. The Respondents each have an opportunity for hearing in this matter.
A Final Order was entered regarding this matter on August 06, 2021.
Tryp Technologies Inc. and Robert John McNulty, a.k.a. Bob McNulty - S-19-2791-21-FO01 - Final Order
On July 8, 2021, the Securities Division entered a Final Order to Cease and Desist, Impose Fines, and Charge Costs against Tryp Technologies Inc. and Robert John McNulty, a.k.a. Bob McNulty (collectively “Respondents”). The Securities Division alleged that the Respondents offered unregistered securities and violated the anti-fraud provision of the Securities Act of Washington. In 2018, the Respondents offered and sold a Washington resident 33,000 shares of Tryp Technologies stock for $25,000 and offered the opportunity to participate in its stock option plan. It is alleged that the Respondents failed to disclose material information to the Resident, including the failure to disclose risks of the investment, litigation and financial information. The Securities Division alleged that the Respondent McNulty acted as an unregistered broker or securities salesperson in connection with the offer of the stock and stock option plan investments. The Final Order ordered the Respondents to cease and desist from violating the Securities Act of Washington. The Final Order ordered Respondents to pay a fine of $25,000 and costs of $9,000. Respondents have the right to petition the superior court for judicial review of the Final Order.
Jedisof Incorporated – S-20-2912-21-CO01 - Consent Order
On July 1, 2021, the Securities Division entered into a Consent Order with Jedisof Incorporated and its President, Martin L.K. Johnson (“Respondents”). Jedisof is a software company located in Marysville, Washington. From 2017 to 2019, Jedisof and Johnson offered and sold at least $195,000 worth of Jedisof stock to at least five investors, including at least three Washington investors who invested a total of more than $180,000. The Securities Division found that the Respondents offered and sold unregistered securities and violated the anti-fraud provisions of the Securities Act of Washington. The Securities Division ordered the Respondents to cease and desist from violating the Securities Act. The Respondents agreed to pay a fine of $2,500 and costs of $1,000. The Respondents each waived their right to a hearing in this matter.
World of Crypto Mining d.b.a. worldofcryptomining.com, Vincent Dorf, and Glen Lesnick - S-20-2920-21-SC01 - Statement of Charges
On June 23, 2021, the Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Charge Costs against World of Crypto Mining (“WOCM”) d.b.a. worldofcryptomining.com, Vincent Dorf, and Glen Lesnick (collectively “Respondents”). In 2019 and 2020, the Respondents offered a Washington resident (the “Resident”) the opportunity to invest with WOCM, a purported crypto mining operation in Switzerland run by Vincent Dorf. The Resident was told that he could make thirty to ninety day short term loans to WOCM for use in its cloud mining operation. Respondents told the Resident he could make 1% interest a day or as much as a 40% return per month on his investment. WOCM raised approximately $10,000 from the Resident and failed to repay the Resident’s principal or promised interest. The WOCM website is no longer operating. Respondents failed to disclose material information about the investment to the Resident such as WOCM’s prior business history or financial statements. Respondents represented exorbitant rates of return on the WOCM loans without a reasonable basis for the claims. Respondent Lesnick solicited the Resident’s investment and, in exchange, expected to receive a thirty per cent commission. The Securities Division alleges that the Respondents offered unregistered securities and violated the anti-fraud provision of the Securities Act of Washington. The Securities Division alleges that the Respondent Lesnick acted as an unregistered broker or securities salesperson in connection with the offer of the WOCM loan investments. The Securities Division intends to order the Respondents to cease and desist from violating 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 as to Glen Lesnick was entered on November 4, 2021.
American Franchise Systems, Inc. d.b.a. CBD American Shaman and Raymond Howard Miley Jr. - S-19-2786-21-SC01 - Statement of Charges
On June 15, 2021, the Securities Division entered a Statement of Charges against American Franchise Systems, Inc. d.b.a. CBD American Shaman and Raymond Howard Miley Jr. (“Respondents”). The Securities Division alleged that the Respondent American Franchise Systems, Inc. offered and/or sold an unregistered franchise to operate a CBD products retail store to at least two Washington residents. The Securities Division alleged that the Respondents American Franchise Systems, Inc. and Raymond Howard Miley Jr. misrepresented and/or failed to disclose material facts when they did not disclose the bankruptcy of a principal officer in its registration application. The Securities Division intends to order the Respondents to cease and desist from violations of RCW 19.100.020 and RCW 19.100.170, the franchise registration and “violations” sections of the Franchise Investment Protection Act. The Respondents each have an opportunity for hearing in this matter.
Christopher Hoover - S-20-2880-21-CO01 - Consent Order
On June 15, 2021, the Securities Division entered into a Consent Order with Respondent Christopher Hoover (“Hoover”). The Consent Order resolves the Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Impose Fines, and Charge Costs (“Statement of Charges”) against Hoover on November 13, 2020. In the Consent Order, the Securities Division alleged that Hoover had violated the registration and antifraud provisions of the Securities Act of Washington by (a) offering securities without Hoover or the securities being appropriately registered, and (b) making false or misleading statements about the company offering the medical devices and the expected financial returns from the investment. Without admitting or denying the Securities Division’s findings of fact or conclusions of law, Hoover agreed to cease and desist from violating the Securities Act of Washington and to pay a fine of $500. Hoover waived his right to a hearing and judicial review of this matter.
Soak LLC - S-20-2864-21-CO01 - Consent Order
On June 14, 2021, the Securities Division entered into a Consent Order, order number S-20-2864-21-CO01, (the “order”) with Soak LLC (“Soak”) to settle allegations that the Division made in an earlier Statement of Charges (order number S-20-2864-20-SC01) against Soak. Soak is a business that owns and operates the Soak on the Sound bathhouse in Port Townsend, Washington. The Division alleged that Soak invited visitors to its website, which is accessible to the general public, to apply for the opportunity to open Soak-branded bathhouses in their communities. The Division also alleged that Soak directly offered its franchise to a Burlington, Washington resident in early 2020. The Division alleged that, in doing so, Soak violated the Washington Franchise Investment Protection Act (the “Act”) by conducting an unregistered franchise offering. Without admitting or denying the Division’s allegations, Soak agreed to cease and desist from violating the Act, and to pay the Division $500 for its investigative costs. Soak also agreed to waive its right to an administrative hearing on and to judicial review of this matter.
Dental Fix – S-19-2776-20-CO01 - Consent Order
On June 3, 2021, the Securities Division entered into a Consent Order with Dental Fix Rx, LLC and David Lopez (Respondents), who is the co-founder of Dental Fix and was its CEO at the time of the conduct alleged. The Securities Division alleged that Respondents offered and sold a franchise to a Spokane resident through franchise brokers who were not registered with the Division, that Respondents made untrue statements of material fact or omitted material facts to the Division in its franchise registration application, and that Respondents made untrue statements of material fact or omitted to state material facts to the franchisee necessary to make the statements, in light of the circumstances in which they were made, not misleading.
Among the misleading conduct the Securities Division alleged, Respondents made financial performance representations (FPRs) to the Washington franchisee even though it stated to the Division in its franchise registration application that it was not making any such representations, and the FPRs it made to the franchisee were misleading. Additionally, Respondents held out a former officer of the company, to whom at the time Dental Fix continued to pay a biweekly salary, to the Washington franchisee as an independent franchisee. During Dental Fix’s franchise discovery day, this former officer then made an FPR to the Washington franchisee that both unauthorized and was not qualified by the former officer’s unique circumstances.
Without admitting or denying the Securities Division’s allegations, Respondents agreed to cease and desist from offering or selling franchises in violation of RCW 19.100.140, the franchise broker registration section of the Franchise Investment Protection Act of Washington. Respondents also agreed to cease and desist from violations of RCW 19.100.170, the violations section of the Franchise Investment Protection Act of Washington.
Additionally, Respondents agreed to offer rescission to the Washington franchisee and, if the franchisee accepts the offer, to repay the franchisee’s initial franchisee fee. Respondents agreed to pay to the Division a total of $5,156.25 in investigative costs and waived their rights to a hearing and judicial review of the matter.
A Consent Order was entered regarding this matter on August 16, 2021.
Jacqueline Jacobsen – S-20-2932-21-SC01 - Statement Of Charges
On June 1, 2021, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Charge Costs, to Impose a Fine, and to Suspend Registrations (order no. S-20-2932-21-SC01) (the “order”) against Clinton, Washington resident Jacqueline Jacobsen (CRD no. 2504257). The order alleges that Jacobsen enriched herself by misusing an internal program funded and operated by a firm with which Jacobsen was affiliated. The order alleges that, in doing so, Jacobsen violated the Securities Act of Washington. Jacobsen may request an administrative hearing on the order.
A Consent Order was entered regarding this matter on October 12, 2021.
Resolute Capital Partners, Ltd., LLC, et al. - S-19-2672-20-CO02 - Consent Order
On May 26, 2021, the Securities Division entered into a Consent Order with Thomas Joseph Powell, Stefan Tiberiu Toth, Resolute Capital Partners, Ltd, LLC, HomeBound, Inc., Home Bound Financial Group, LP, HomeBound Resources, LLC, PetroRock Mineral Holdings, LLC, Strategic Energy Assets, LLC, Mountain High Capital, LLC, HBR VI, LLC, Strategic Energy Assets - III, LLC, PRMH Lenders Fund, LLC, PRMH Lenders Fund II, LLC, PRMH Lenders Fund III, LLC, Strategic Energy Assets VI, LLC, Strategic Energy Assets VII, LLC, Choice Energy Holdings - I, LLC, Choice Energy Holdings - II, LLC, Choice Energy Holdings - III, LLC, Legacy Energy, LLC, and Legacy Energy II, LLC (collectively, “Respondents”).
The Securities Division alleges that Respondents offered and sold at least $4,441,603.66 in unregistered securities related to oil and gas projects to at least 20 investors in Washington using a nationwide sales force of unregistered sales agents, including bad actors. The Securities Division further alleges that Respondents made false or misleading statements or did not provide material information necessary to make the offer and sale of these securities not misleading over the course of these solicitations. Respondents’ false and misleading statements or omissions included their failure to disclose that funds from new debt investors were used to pay Respondents’ obligations to existing debt investors, and that, starting in 2018, debt investors’ funds were being or had been used to purchase the oil and gas wells in a set of equity offerings in a related-party transaction. Respondents also failed to disclose to investors the disciplinary history of several of the individuals who were involved the offer and sale of their offerings.
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. Respondents Powell, Toth, Resolute Capital, HomeBound, Inc., Home Bound Financial Group, LLC, HomeBound Resources, LLC, Strategic Energy Assets, and Mountain High Capital agreed to cease and desist from violations of RCW 21.20.040, securities salesperson and broker-dealer registration section. Respondents also agreed to cease and desist from violations of RCW 21.20.010, the antifraud provision of the Securities Act of Washington. If Respondents are part of any future offering in Washington, they must conduct such securities offerings to Washington residents only through Securities Division licensees and must, before doing so, provide to the Securities Division updated policies and procedures demonstrating sufficient processes designed to reasonably ensure compliance with the Securities Division’s Consent Order.
Respondents agreed to pay a total of $263,525.00 in fines and investigative costs and waived their rights to a hearing and judicial review of the matter.
SwimLabs & Rehab Holding Company, Inc. - S-21-3104-21-CO01 - Consent Order
On May 17, 2021, the Securities Division entered a Consent Order against SwimLabs & Rehab Holding Company, Inc. (“SwimLabs”). In 2014, SwimLabs entered into a license agreement with a Washington LLC, to operate a swimming instruction business to be located in Issaquah, Washington. For a $10,000 fee, SwimLabs allowed the LLC to use its trademarks or service marks in the operation of the business, and offered to provide certain training and other assistance. In the Consent Order, the Division alleges that by entering into the license agreement without a current franchise registration with the Division, SwimLabs sold an unregistered franchise in violation of the Franchise Investment Protection Act of Washington (the “Act”). The Division also alleges that SwimLabs failed to provide a franchise disclosure document (FDD) to the Washington LLC prior to the sale of the franchise, also in violation of the Act. By entering into the Consent Order, SwimLabs neither admits nor denies the Division’s allegations made in the Consent Order, and agrees to cease and desist from violating the Act and to pay investigative costs of $500. SwimLabs also waived its right to an administrative hearing on and judicial review of this matter.
Tryp Technologies Inc. and Robert John McNulty, a.k.a. Bob McNulty - S-19-2791-21-SC01 - Statement of Charges
On May 17, 2021, the Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Charge Costs against Tryp Technologies Inc. and Robert John McNulty, a.k.a. Bob McNulty (collectively “Respondents”). The Securities Division alleges that the Respondents offered unregistered securities and violated the anti-fraud provision of the Securities Act of Washington. In 2018, the Respondents offered and sold a Washington resident 33,000 shares of Tryp Technologies stock for $25,000 and offered the opportunity to participate in its stock option plan. It is alleged that the Respondents failed to disclose material information to the Resident, including the failure to disclose risks of the investment, litigation and financial information. The Securities Division alleges that the Respondent McNulty acted as an unregistered broker or securities salesperson in connection with the offer of the stock and stock option plan investments. The Securities Division intends to order the Respondents to cease and desist from violating 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 Final Order was entered regarding this matter on July 8, 2021.
Trademining, Inc., a/k/a Trademining.io and Devon T. Shigaki - S-20-3000-20-CO01 - Consent Order
On May 6, 2021 the Securities Division entered into a Consent Order with TradeMining, Inc., a/k/a Trademining.io, and Devon T. Shigaki (“Respondents”). The Securities Division has previously entered a Summary Order against the respondents on September 30, 2020. The Summary Order alleged that Respondents were violating the Securities Act of Washington (“the Act”) by generally soliciting investors to purchase unregistered securities in the form of licenses for the Infinity Trade Engine, which purportedly traded in cryptocurrency. The Order also alleged that Respondents were violating the Act by failing to disclose material information to investors, including Shigaki’s financial background, the background of the person managing the Trade Engine, and specifics regarding the Trade Engine. In the Consent Order, without admitting or denying the Securities Division’s allegations, Respondents agreed to cease and desist from violating the Securities Act of Washington. Respondents each waived their right to a hearing and judicial review of this matter.
Gateway Financial & Estate Planning, Inc.; Chad Nielsen - S-21-3115-21-CO01 - Consent Order
On May 6, 2021 the Securities Division entered Consent Order S-21-3115-21-CO01 (“Consent Order”) with Gateway Financial & Estate Planning, Inc. (CRD 144741) and Chad Nielsen (CRD 3220184) (collectively, “Respondents”). In the Consent Order, Respondents agreed to cease and desist violating RCW 21.20.040(3) of the Washington Securities Act by conducting investment advisory business without registration. Respondents also agreed to pay a fine. Respondents waived their right to a hearing and judicial review of the matter.
ARPWave LLC; Thompson, Denis – S-20-2951-20-CO01 – Consent Order
On April 29, 2021, the Securities Division entered into a Consent Order with Respondents ARPWave LLC (“ARPWave”) and Denis Thompson (“Thompson”). The Securities Division had previously issued a Statement of Charges against ARPWave and Thompson, alleging violations of the registration and antifraud provisions of the Securities Act of Washington in connection with the offer of medical device investments via Craigslist. In the Consent Order, the Respondents neither admitted nor denied the Securities Division’s Findings of Fact and Conclusions of Law, but agreed to cease and desist from violating the registration and antifraud provisions of the Securities Act of Washington. The Respondents further agreed to pay investigative costs of $3,000. The Respondents waived their right to a hearing and to judicial review of this matter.
J1S Energy, LLC, Kirk D Jones, Josh Childress - S-19-2622-21-SC01 - Statement of Charges
On April 16, 2021, 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 J1S Energy, LLC, Kirk D Jones, and Josh Childress. The Statement of Charges alleged that Childress cold-called an elderly resident of Chelan County, Washington and offered him unregistered oil and gas investments in J1S Energy, LLC. Respondents then sold the Washington investor three investments totaling about $198,000. Respondents failed to provide the investor with material information about the investments. The Statement of Charges alleged that Respondents violated the securities registration, securities salesperson registration, and anti-fraud provisions of the Securities Act of Washington. The Statement of Charges gave notice of the Securities Division’s intent to order Respondents to cease and desist from violating the Securities Act of Washington, and to order the payment of fines and costs. Respondents have a right to request a hearing on the Statement of Charges.
A Consent Order was entered regarding this matter on September 12, 2022.
KickHouse Fitness Licensing, LLC - S-20-3022-21-CO01 - Consent Order
On April 16, 2021, the Securities Division entered into a Consent Order with KickHouse Fitness Licensing, LLC (“KickHouse”), a Texas-based business that is an affiliate of KickHouse Fitness, LLC which is in the business of providing kick boxing-based exercise programs along with related services such as nutrition programming and motivational coaching. In the Consent Order, the Division alleged that KickHouse provided a Washington resident with a “Trade Mark License Agreement” that would have allowed the Washington resident to operate a KickHouse-branded business. The Division further alleged that, in doing so, KickHouse violated Washington’s Franchise Investment Protection Act (the “Act”). By entering into the Consent Order, KickHouse neither admits nor denies the Division’s allegations made in the Consent Order, and agrees to cease and desist from violating the Act. KickHouse also waived its right to an administrative hearing on and judicial review of this matter.
Scott Rahn - S-20-2966-21-CO01 - Consent Order
On April 6, 2021, the Securities Division entered into Consent Order S-20-2966-21-CO01 (“Consent Order”) with respondent Scott Rahn (CRD 1959522), conditioning the investment adviser registration of any investment adviser controlled by Respondent. The Consent Order states that, as a securities salesperson of LPL Financial, Respondent made unsuitable recommendations to customers in violation of RCW 21.20.702 and WAC 460-22B-090(7), the suitability provisions of the Securities Act of Washington. The Consent Order requires retention of an independent compliance firm for a period of two years. Respondent waived his right to judicial review of the matter.
Svaram Group, Inc., Svaram Global, LLC, and Murali K. Kuppa - S-18-2565-20-CO01 - Consent Order
On April 5, 2021, the Securities Division entered into a Consent Order with Svaram Group, Inc., Svaram Global, LLC, and Murali K. Kuppa (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 against the Respondents. The Securities Division alleged that Svaram Group was a start-up private equity fund operating from the greater Seattle area. In 2017, Kuppa solicited two Washington residents to invest a total of $150,000 with him in the organization and formation stage of the fund, in return for equity positions in Svaram Group and Svaram Global. The Securities Division alleged that the Respondents 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 of Washington, and to pay a fine of $3,000 and investigative costs of $3,000. The Respondents waived their right to a hearing and to judicial review of the matter.
Blake E. Robbins - S-17-2256-21-FO01 - Final Order
On April 5, 2021, the Director of the Washington State Department of Financial Institutions entered a Final Order against Blake E. Robbins. The Securities Division previously entered a Statement of Charges against the Respondent Robbins and Overlake Capital, LLC, Overlake Capital Real Estate Fund I, LLLP, Overlake Capital Real Estate Fund II, LLLP, Overlake Capital Absolute Fund I, LLLP, Overlake Capital REO 122, LLC, Overlake Capital REO 123, LLC, Overlake Capital REO 124, LLC, Overlake Capital REO 127, LLC, Overlake Capital REO 128, LLC, Seattle R/E Investments 61, LLC, Beaumont 23, LLC, Caraway Run, LLC, Paradise Harbour, LLC, 817 32nd Ave, LLC, and Paul T. Thacker on December 12, 2018. The Final Order found that Respondent Robbins violated RCW 21.20.040 and RCW 21.20.010, and ordered Respondent Robbins to cease and desist from further violations of the Securities Act. The Final Order ordered Respondent Robbins to pay a fine of $20,000 and costs of $10,000. Respondent Robbins has the right to petition the superior court for judicial review of the Final Order.
Chalice Investments, Inc. et al - S-18-2534-20-CO01 - Consent Order
On April 2, 2021, the Securities Division entered into a Consent Order with Jeffray Lewis (“Lewis”) and several entities under his control (Chalice Investments, LLC; Haystack 4Life, LLC; Haystack Caps, LLC) (collectively, “Respondents”) to settle allegations made by the Division in an earlier Statement of Charges that the Respondents had violated the Washington State Securities Act (the “Act”). The Division alleged that Lewis, through his entities, sold $60,000 of limited company interests to a Washington couple to ostensibly support Lewis’s marijuana businesses. The Statement of Charges further alleged that, in doing so, the Respondents violated the Act’s anti-fraud and securities registration provisions. The Division also alleged that Lewis violated the Act’s securities salesperson registration section. In settling this matter, the Respondents neither admitted or denied the Division’s allegations, and agreed to cease and desist from all violations of the Act. Lewis further agreed to pay the Division $500 for its investigative costs, and a fine of $500. The Respondents waived their rights to an administrative hearing and judicial review of this matter.
Mobile Workforce, Inc. and David Weir - S-20-2837-21-SC01 - Statement of Charges
On April 2, 2021, the Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Charge Costs against Mobile Workforce, Inc. and David Weir (Respondents). Mobile Workforce Inc. is a medical supply chain management business operating out of Port Orchard, Washington. In September 2018, Respondents sold $41,000 worth of Mobile Workforce, Inc. stock to three investors, $21,000 of which was to two Washington residents. The Securities Division alleges that Respondents violated the anti-fraud provision of the Securities Act of Washington when it sold the Mobile Workforce Inc. stock. The Securities Division ordered Respondents to cease and desist from violating the Securities Act of Washington. The Securities Division gave notice of its intent to collect fines and charge costs. Respondent have a right to request a hearing on the Statement of Charges.
Cape Point Wealth & Tax Management, LLC and Michael Glick - S-20-2944-21-FO01 - Final Order
On April 1, 2021, the Securities Division entered Final Order S-20-2944-21-FO01 (“Final Order”), against investment adviser Cape Point Wealth & Tax Management, LLC (“Cape Point”, CRD #305344) and its owner and investment adviser representative Michael Glick (CRD #4798927) (collectively, “Respondents”). The Securities Division issued a Statement of Charges against Respondents on December 31, 2020. The Statement of Charges alleged that Respondents failed to file Cape Point’s annual updating amendment to its Form ADV in violation of WAC 460-24A-205 and failed to timely file its year-end balance sheet in violation of WAC 460-24A-060. The Final Order revokes Respondents’ registrations, imposes fines, and charges costs. Respondents have the right to request judicial review of the Final Order.
Omega Capital Advisor LLC and Terry Laxton - S-20-2987-21-SC01 - Statement of Charges
On March 26, 2021, the Securities Division entered Statement of Charges and Notice of Intent to Enter an Order to Revoke Registration, Deny Future Registration, Cease and Desist, Impose a Fine, and Charge Costs (“Statement of Charges”) against respondents Omega Capital Advisor LLC (“Omega”, CRD #143303) and its owner Terry Laxton (CRD #1197756). In the Statement of Charges, the Securities Division alleges that after Omega failed to renew Mr. Laxton’s investment adviser representative registration over six years ago, Omega has failed to have a registered investment adviser representative in violation of WAC 460-24A-050(4). The Securities Division additionally alleges that after his registration failed to renew, Mr. Laxton has continued to hold himself out to the public as an investment adviser representative in violation of RCW 21.20.040(4). The Statement of Charges gives notice of the Securities Division’s intent to revoke the investment adviser registration of Omega; to deny future registrations of Mr. Laxton for one year; to order Mr. Laxton to cease and desist from violations of RCW 21.20.040(4); to impose an administrative fine; and to charge investigative costs. Respondents have a right to request a hearing on the Statement of Charges.
A Consent Order was entered regarding this matter on August 10, 2021.
Wesley J. Evans – S-20-3019-21-FO01 - Final Order
On March 25, 2021, the Securities Division entered a Final Order to Deny Future Registrations, Impose a Fine, and Charge Costs (Final Order) against Wesley J. Evans (CRD No. 6617516) (Evans), a Seattle resident and former securities salesperson for J.P. Morgan Securities LLC (CRD No. 79). The Securities Division previously issued a Statement of Charges against Respondent Evans on January 22, 2021. This action stemmed from a Letter of Acceptance, Waiver, and Consent agreed to by Respondent Evans and the Financial Industry Regulatory Authority (FINRA) in July 2020, in which he neither admitted nor denied the findings and agreed to be barred from associating with any FINRA member in any capacity. The Securities Division finds that Respondent Evans violated the dishonest and unethical business practices section of the Securities Act of Washington and its associated regulations by misappropriating $14,740.00 from two elderly clients to his personal credit cards while working as a private client banker at JPMorgan Chase Bank, N.A., and by refusing to comply with a FINRA information request about this conduct after he was terminated by the bank. The Securities Division orders the denial of any future securities registration application by Respondent Evans, and imposes a fine of $1,000.00 and cost recovery of $1,750.00. Respondent Evans has a right to request judicial review of the Final Order.
Sun Asset Management, Inc. and Kevin Liu - S-20-3011-21-FO01 - Final Order
On March 24, 2021, the Securities Division entered Final Order S-20-3011-21-FO01 (“Final Order”), against Sun Asset Management, Inc. (CRD 140435) and Kevin Liu (CRD 4394803) (collectively, “Respondents”). The Securities Division previously issued a Summary Order against Respondents, summarily suspending the investment adviser registration of Sun Asset Management and the investment adviser representative registration of Mr. Liu. In the Final Order, the Securities Division found that Respondents failed to make Sun Asset Management’s books and records available for examination by the Securities Division in violation of RCW 21.20.100(4). The Final Order revoked Respondents’ registrations, imposed fines, and charged costs. Respondents have the right to request judicial review of the Final Order.
Donald Logan - S-19-2632-20-CO01 - Consent Order
On March 17, 2021 the Securities Division entered into a Consent Order with Donald Logan (“Logan”) (CRD no. 5537486) to settle a Statement of Charges the Division had entered against Logan, who was registered with the Division as a securities salesperson and investment adviser representative of two firms from 2008 to 2018. Logan is not currently registered with the Division. In the Statement of Charges, The Division alleged that Logan engaged in unethical conduct by exercising unauthorized discretion over clients’ accounts, and by misusing client forms. The Division also alleged 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 Division further alleged that Logan acted unethically when he did not disclose his financial interest in recommendations that he made to a client. In settling this matter, Logan agreed to pay a fine of $5,000 upon applying for registration with the Division as a broker-dealer, securities salesperson, investment adviser, or investment adviser representative, investigative costs of $2,000, and to cease and desist from violating the Washington State Securities Act. The Consent Order also provides that any investment adviser, investment adviser representative, broker-dealer, and securities salesperson registrations that Logan may seek in the four months following the entry of the Consent Order shall be denied. After that period, any registration as a broker-dealer, securities salesperson, investment adviser, and investment adviser representative shall be conditioned upon Logan’s sponsoring firm submitting a plan of heightened supervision that will last a minimum of two years. By entering into the Consent Order, Logan waived his right to a hearing on and to judicial review of this matter.
Lasting Connections, LLC; Lasting Connections Matchmaking App LLC; Sameera Sullivan - S-20-3041-21-CO01 - Consent Order
On March 17, 2021, the Securities Division entered into a Consent Order with Lasting Connections, LLC; Lasting Connections Matchmaking App LLC; and Sameera Sullivan (Respondents). In the Consent Order, the Securities Division alleged that the Respondents operated a matchmaking business based in Portland, Oregon and raised $50,000 through the sale of unregistered securities to two Washington investors in Bellingham, Washington. In settling the matter, the Respondents neither admitted nor denied the allegations, but agreed to cease and design from violating the Securities Act. The Consent Order requires the Respondents to pay a fine of $1,500 and investigative costs of $3,500.
New Vision Properties, LLC and Jimi Ward – S-20-3048-21-FO01 - Final Order
On March 3, 2021 the Securities Division entered a Final Order against New Vision Properties, LLC and Jimi Ward (collectively, “Respondents”). The Securities Division previously entered a Statement of Charges alleging that the Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington through the sale of approximately $100,000 of investments that were sold to investors in Washington and Oregon. The Final Order orders the Respondents to cease and desist from violating the Securities Act of Washington, orders New Vision Properties, LLC and Jimi Ward to each pay a fine of $10,000, and to pay $2,500 in investigative costs. The Respondents each have a right to seek judicial review of the Final Order.
Anderson, Douglas - S-18-2410-20-CO01 - Consent Order
On March 3, 2021, the Securities Division entered into a Consent Order with Respondent Douglas Charles Anderson (“Anderson”). The Securities Division had previously issued a Statement of Charges against Anderson and another Respondent, Jonathan Davis, in connection with the offer and sale of interests in a marijuana retail entity, Diego Pellicer Inc., and a related publicly traded company, Diego Pellicer Worldwide Inc. In the Consent Order, Anderson neither admitted nor denied the Securities Division’s Findings of Fact and Conclusions of Law, but agreed to cease and desist from violating the registration and antifraud provisions of the Securities Act of Washington. Anderson further agreed to pay a fine of $4,000 and investigative costs of $1,000. Anderson waived his right to a hearing and to judicial review of this matter.
Michael Pace, CFP (CRD #113986) – S-20-3033-21-FO01 - Final Order
On March 3, 2021, the Securities Division entered a Final Order to Revoke Registration against Respondent Michael Pace, CFP (Pace CFP). In the Final Order the Securities Division found that Pace CFP failed to maintain a compliant business continuity and succession plan as required of registered investment advisers. As a result, when the owner of Pace CFP died, Pace CFP did not have a complete set of books and records of the investment adviser nor any qualified person in place to carry out the investment adviser’s business. The Securities Division revoked the investment adviser registration of Pace CFP. Pace CFP has the right to request judicial review of the Final Order.
Charles Winn, LLC - S-20-3038-21-FO01 - Final Order
On February 23, 2021, the Securities Division entered a Final Order to Cease and Desist, Impose Fines, and Charge Costs against Charles Winn, LLC. The Securities Division previously entered a Statement of Charges against the Respondent on January 7, 2021. The Statement of Charges alleged that Charles Winn and its sales agents engaged in a cold-calling scheme to target investors throughout the United States, including Washington, to invest in its wine brokerage program. Between 2018 and 2020, four Washington residents invested approximately $68,000 in Charles Winn’s wine brokerage program. The Securities Division further alleged that the Respondent sold unregistered securities, acted as an unregistered broker-dealer, and violated the anti-fraud provision of the Securities Act of Washington. The Securities Division orders the Respondent to cease and desist from violating the Securities Act of Washington, and to pay fines and investigative costs. The Respondent has the right to request judicial review of this matter.
Symboli Blockchain, LLC and Robert Bevan Brian. - S-19-2822-21-SC01 - Statement of Charges
On February 19, 2021, the Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Charge Costs against Symboli Blockchain LLC and Robert Bevan Brian (collectively “Respondents”). In approximately June 2018, Brian solicited an investor to invest $35,000 in pre-ICO Symboli tokens that Brian represented that he personally owned and held in his crypto wallet, and that the investor could sell in approximately one month for a significant profit. In fact, Brian never held any Symboli tokens, as they never finished development. Subsequently, in December 2018, the Symboli token offering was advertised via general solicitation on the internet, including to Washington residents. The Securities Division alleges that the Respondents offered 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. 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 August 10, 2021.
Soak LLC - S-20-2864-20-SC01 - Statement of Charges
On February 16, 2021, the Securities Division entered Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist, order number S-20-2864-20-SC01, (the “order”) against Soak LLC (“Soak”), a business that owns and operates the Soak on the Sound bathhouse in Port Townsend, Washington. The order alleges that Soak invited visitors to its website, which is accessible to the general public, to apply for the opportunity to open Soak-branded bathhouses in their communities. The order also alleges that Soak directly offered its franchise to a Burlington, Washington resident in early 2020. In doing so, the order alleges that Soak violated the Washington Franchise Investment Protection Act (the “Act”) by conducting an unregistered franchise offering. The order gives notice of the Securities Division’s Intent to order Soak to cease and desist from violating the Act. Soak may request an administrative hearing on the order.
A Consent Order was entered regarding this matter on June 14, 2021.
Geoffrey Thompson - S-18-2484-20-FO02 - Final Order
On February 12, 2021, the Securities Division entered a 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 Geoffrey Thompson (Respondent). From October 2017 to November 2017, Thompson raised $2,100 from three Washington State investors through the sale of Doyen Elements common stock. Doyen Elements was in the business of providing ancillary services to the legal cannabis industry. In the Final Order, the Securities Division concluded that Respondent violated the antifraud provision of the Securities Act of Washington by failing to disclose material information to investors in its Regulation A – Tier 2 offering. Respondent has the right to request judicial review of the Final Order.
Wesleyan Investment Foundation - S-20-3055-21-CO01 - Consent Order
On February 9, 2021, the Securities Division entered into a Consent Order with Wesleyan Investment Foundation (“Respondent”). The Securities Division alleged that the alleged that the Respondents conducted an unregistered offering of “deposit investments” between at least 2004 and 2017. In settling the matter, the Respondents neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act. The Respondent further agreed to pay a fine of $10,000 and reimburse the Securities Division $1,500 for its costs of investigation. The Respondent waived his right to a hearing and to judicial review of the matter.
Baker & Associates, LLC; David Baker - S-19-2645-20-CO01 - Consent Order
On February 9, 2021, the Securities Division entered into a consent order (“Consent Order”) with Baker & Associates, LLC (CRD 305284) and David Baker (CRD 809683) (collectively, “Respondents”). The Securities Division previously entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist, Impose Fines, and Charge Costs against Respondents. The Consent Order states that Respondents violated the Securities Act of Washington by holding themselves out as an “IRA investment advisor,” a “financial advisor,” and a financial planner while not registered as an investment adviser or investment adviser representative in Washington in violation of RCW 21.20.040(4). Respondents modified their website and agreed to cease and desist from any further violations of RCW 21.20.040(4). Respondents agreed to pay a fine and costs. The fine and costs were reduced due to their financial condition. Respondents waived their right to a hearing and judicial review of the matter.
Mattress Today USA Inc. - S-20-3044-21-CO01 - Consent Order
On February 2, 2021, the Securities Division entered into a Consent Order with Mattress Today USA Inc. (Respondent), which is headquartered in Mount Vernon, Washington. In the Consent Order, the Securities Division alleged that the Respondent violated the Franchise Investment Protection Act by offering and selling franchises in Washington and other states while not registered to do so and by failing to provide franchisees with a franchise disclosure document. Without admitting or denying the Securities Division’s allegations, the Respondent agreed to cease and desist from violating the franchise registration and franchise disclosure document sections of the Franchise Investment Protection Act. The Respondent agreed to pay investigative costs of $1,500 and waived its right to a hearing and judicial review of the matter.
New Vision Properties, LLC and Jimi Ward - S-20-3048-21-SC01 – Statement of Charges
On January 28, 2021, 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 New Vision Properties, LLC and Jimi Ward (collectively, “Respondents”). The Statement of Charges alleges that the Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington through the sale of approximately $100,000 of investments to two investors. New Vision Properties was a business based in Walla Walla, Washington that was in the business of buying and renovating residential homes. 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 Final Order was entered regarding this matter on March 3, 2021.
Dragonchain, Inc. – S-18-2433-21-CO01 - Consent Order
On January 26, 2021, the Securities Division entered into a Consent Order with Dragonchain, Inc. (“Dragonchain”), which is headquartered in Bellevue, Washington. The Securities Division alleged that Dragonchain violated the registration provisions of the Securities Act of Washington by failing to register its Initial Coin Offering, which raised approximately $12.7 million from approximately 5,000 purchasers during October and November 2017 from the sale of Dragon tokens. The Securities Division alleged that Dragonchain violated the anti-fraud provisions of the Securities Act by misrepresenting or failing to disclose material information about the company, including its financial condition and the intended use of proceeds from the offering. Without admitting or denying the Securities Division’s allegations, Dragonchain agreed to cease and desist from any violation of the securities registration and anti-fraud provisions. Dragonchain also agreed to pay a $50,000 fine and $10,000 of investigative costs. Dragonchain waived its right to an administrative hearing and to judicial review of this matter.
Wesley J. Evans - S-20-3019-21-SC01 - Statement of Charges
On January 22, 2021, the Securities Division issued a Statement of Charges and Notice of Intent to Issue an Order to Deny Future Registrations, Impose Fines, and Charge Costs (Statement of Charges) against Wesley J. Evans (CRD No. 6617516) (Evans), a Seattle resident and former securities salesperson of J.P. Morgan Securities LLC (CRD No. 79). This Statement of Charges stems from a Letter of Acceptance, Waiver, and Consent agreed to by Evans and the Financial Industry Regulatory Authority (FINRA) in July 2020, in which Evans neither admitted nor denied the findings and agreed to be barred from associating with any FINRA member in any capacity.
The Securities Division alleges that Evans violated the dishonest and unethical business practices section of the Securities Act of Washington and its associated regulations by misappropriating $14,740.00 from two elderly clients to his personal credit cards while working as a private client banker at JPMorgan Chase Bank, N.A., and by refusing to comply with a FINRA information request about this conduct after he was terminated by the bank. In the Statement of Charges, the Securities Division gives notice of its intent to deny future registrations, collect a fine of $1,000.00, and charge costs of $1,750.00. The Respondent has a right to request a hearing on the Statement of Charges.
A Final Order was entered regarding this matter on March 25 2021.
On January 21, 2021, the Securities Division entered a Final Order against Respondent Ronald R. Alber (“Alber”). The Final Order found that in January 2012, Alber 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 Final Order also found that Alber 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 Final Order imposed a fine of $10,000 and costs of $1,500 against Alber. Alber has the right to request judicial review of the Final Order.
Charles Winn, LLC - S-20-3038-20-SC01 - Statement of Charges
On January 7, 2021, the Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Charge Costs against Charles Winn, LLC. Charles Winn and its sales agents have engaged in a cold-calling scheme to target investors throughout the United States, including Washington, to invest in its wine brokerage program. Between 2018 and 2020, four Washington residents invested approximately $68,000 in Charles Winn’s wine brokerage program. The Securities Division alleges that the Respondent sold unregistered securities, acted as an unregistered broker-dealer, and violated the anti-fraud provision of the Securities Act of Washington. The Securities Division ordered the Respondent to cease and desist from violating the Securities Act of Washington. The Securities Division gave notice of its intent to collect fines and charge costs. The Respondent has a right to request a hearing on the Statement of Charges.
A Final Order was entered regarding this matter on February 23, 2021.