Orders From Other Years

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UC Asset LP - S-22-3466-23-SC01 Statement of Charges

On February 27, 2023, the Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, to Impose Fines, and to Charge Costs against UC Asset LP, UCF Asset LLC, and Xianghong Wu. The Securities Division alleged that UC Asset LP and UCF Asset LLC offered and sold SEC-qualified securities to Washington residents while failing to notice file the offering in Washington as required. Further, the Securities Division alleged that Xianghong Wu acted as a salesperson in the offer and sale, while failing to register as required. The Securities Division gave notice of its intent to issue an order to the Respondents to permanently cease and desist from violating the Securities Act of Washington. The Respondents each have the right to request a hearing on the Statement of Charges.

GBT Trading Inc. and Jiayang Zhang - S-22-3363-23-SC01 - Statement of Charges

On February 24, 2023, 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 GBT Trading Inc. and Jiayang Zhang (collectively the “Respondents”). Respondents defrauded a Washington resident out of approximately $48,000 by making misleading claims about its trading service. The Statement of Charges alleges that Respondents offered and/or sold a security in Washington by offering and/or selling its cryptocurrency trading service. The Statement of Charges further alleges that during the offer and/or sale of this security, the Respondents violated the registration and anti-fraud provisions 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.

Jeremy Miner – S-21-3186-22-CO01 - Consent Order

On February 22, 2023, the Securities Division (the “Division”) entered into a Consent Order with Jeremy Miner (“Respondent”). The Division previously entered a Statement of Charges against the Respondent on June 29, 2022. The Respondent sold an investment opportunity called The Plutus Plan while working for Plutus Enterprises LLC d/b/a OPM Wealth, an internet-based company. In the Consent Order, the Division alleged that the Respondent sold unregistered securities and acted an unregistered securities salesperson. The Division further alleged that the Respondent violated the anti-fraud provision of the Securities Act of Washington. In settling the matter, the Respondent neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act, pay a $4,000 fine, and pay $1,000 in investigative costs. The Respondent waived his right to a hearing and to judicial review on the matter.

Thomas Madden - S-21-3122-23-CO01 - Consent Order

On February 21, 2023, the Securities Division entered into a Consent Order with Thomas Madden (“Madden”). The Securities Division previously entered a Statement of Charges against Madden. The Statement of Charges alleged that Madden violated the anti-fraud provisions of the Securities Act of Washington when he offered and sold stock to investors in Washington. In settling the matter, Madden neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act. Madden further agreed to pay a fine of $10,000 and reimburse the Securities Division $2,500 for its costs of investigation. Madden waived his right to a hearing and to judicial review of the matter.

Nexo Capital Inc. – S-21-3225-23-CO01 - Consent Order

On February 13, 2023, the Securities Division entered into a Consent Order with Nexo Capital Inc. (“Nexo”), which settled a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Charge Costs that the Securities Division entered against Nexo Inc., Nexo Capital Inc., and Antoni Trenchev. In the Statement of Charges, the Securities Division alleged that, beginning in June 2020, Nexo offered and sold unregistered securities in the form of the Nexo Earn Interest Product (“EIP”) to at least 2,368 Washington residents. Without admitting or denying the allegations, Nexo agreed to cease and desist from violating the Securities Act, to end the unregistered EIP program, and to pay an administrative fine of $424,528.30. Nexo waived its right to a hearing and to judicial review of the matter.

Charles Richard Burgess, a/k/a Dick Burgess - S-20-2861-22-CO01 - Consent Order

On February 8, 2023, the Securities Division entered a Consent with Respondent Charles Richard Burgess, a/k/a Dick Burgess (Burgess), a resident of Vancouver, Washington. Burgess agreed to and has admitted to the facts as set forth by the Securities Division in a previously issued 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). The Statement of Charges alleged 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 called “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.

In August 2022, Mr. Burgess pleaded guilty to federal criminal charges of mail fraud in connection with his scheme to defraud investors. He is expected to be sentenced in November 2022.

The Consent Order orders Burgess to permanently cease and desist from violating the Securities Act of Washington and in lieu of fines and costs, he agrees and is ordered make restitution to the victims as ordered by the court in his criminal case.

Scott Manchester and Top 3 Martial Arts of Redmond LLC formerly known as Brazilian Jiu-Jitsu of Redmond, LLC and d.b.a. Elite Brazilian Jiu-Jitsu - S-19-2802-22-CO01 - Consent Order

On February 1, 2023, the Securities Division entered into a Consent Order with Respondents Scott Manchester and Top 3 Martial Arts of Redmond LLC formerly known as Brazilian Jiu-Jitsu of Redmond, LLC and d.b.a. Elite Brazilian Jiu-Jitsu (“Respondents”). The Securities Division alleged that Respondents Manchester and Top 3 Martial Arts of Redmond LLC offered and sold unregistered franchises in the form of licenses to operate an Elite Brazilian Jiu Jitsu affiliated business to at least four individuals. The Securities Division alleged that Respondents Manchester and Top 3 Martial Arts of Redmond LLC failed to provide prospective franchise offerees with a franchise disclosure document. Respondents Manchester and Top 3 Martial Arts of Redmond LLC agreed and were ordered to cease and desist from violations of RCW 19.100.020 and RCW 19.100.080, the registration and disclosure document sections of the Franchise Investment Protection Act. The Respondents agreed to pay investigative costs of $6,000 and waived their right to a hearing and judicial review of the matter.

Viktor Lawryniuk - S-20-2978-22-CO01 - Consent Order

On January 24, 2023, the Securities Division (the “Division”) entered into a Consent Order with Viktor Lawryniuk (“Respondent”). The Securities Division previously entered a Statement of Charges against the Respondent on August 29, 2022. The Respondent offered and sold unregistered stock in AltoTerra Capital Partners Ltd., a company from Burlington, Washington, that leased equipment and real estate to cannabis companies in Oregon and Washington. In the Consent Order, the Division alleged that the Respondent sold unregistered securities and acted as an unregistered securities salesperson. The Division also alleged that the Respondent a violated the anti-fraud provision of the Securities Act of Washington. In settling the matter, the Respondent neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act. The Respondent waived his right to a hearing and to judicial review on the matter

Thomas Madden - S-21-3122-22-SC01 - Statement of Charges

On January 3, 2023, 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 Thomas Madden (the Respondent). The Statement of Charges alleges that the Respondent violated the anti-fraud provisions of the Securities Act of Washington when he offered and sold stock to investors in Washington. 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 Consent Order was entered regarding this matter on February 21, 2023.