Source: https://dfi.wa.gov/securities-enforcement-actions/securities2015
Timestamp: 2020-08-14 14:12:55
Document Index: 253876266

Matched Legal Cases: ['in fine', 'in fine', 'in fine', 'in fine', 'in fine', 'arts 1', 'in fine', 'arts 1']

﻿ 2015 Division of Securities Enforcement Actions
2015 Division of Securities Enforcement Actions
Robin Charlet – S-14-1417-15-CO03 – Consent Order
On December 24, 2015, the Securities Division entered into a Consent Order with Robin Charlet. The Securities Division had previously entered a Statement of Charges against Couch Oil & Gas, Inc., Charles O. Couch, Robin Charlet, and Kirk Porter (collectively “Respondents”) on May 23, 2014. The Securities Division alleged that Respondents violated RCW 21.20.140 and RCW 21.20.040 when they offered and sold $629,375 of unregistered oil and gas investments to Washington residents. Further, the Division alleged that Respondents violated RCW 21.20.010, the anti-fraud provision of the Securities Act of Washington. Without admitting or denying the Securities Division’s allegations, Robin Charlet agreed to cease and desist from violating the Securities Act of Washington. Robin Charlet also agreed to pay an administrative fine of $1,000 and investigative costs of $500. Robin Charlet waived his right to a hearing and judicial review of the matter.
MiniHYA Corporation; and Raymond Willis - S-15-1624-15-SC01 - Statement of Charges
On December 18, 2015, 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 MiniHYA Corporation and Raymond Willis. The Statement of Charges alleges that MiniHYA Corporation and Raymond Willis misrepresented and omitted material information through their efforts to raise capital to develop and sell a nutritional supplement. The Statement of Charges further alleges that MiniHYA Corporation sold unregistered shares in its company and that Raymond Willis was not registered or exempt from registration when he sold shares in MiniHYA Corporation. The Securities Division intends to order MiniHYA Corporation and Raymond Willis to cease and desist from violating the Securities Act of Washington and gives notice of its intent to impost a fine and charge costs. MiniHYA Corporation and Raymond Willis each have a right to request a hearing on the Statement of Charges.
A Final Order was entered regarding this matter on November 16, 2016.
Michael Pucci, Ashley Zdeb and Dystopia Rising, LLC - S-15-1714-15-SC01 - Statement of Charges
On December 17, 2015, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist against Respondents Michael Pucci, Ashley Zdeb and Dystopia Rising, LLC alleging that Respondents violated the Franchise Investment Protection Act by offering and selling franchises in Washington while not registered to do so and failing to provide prospective franchisees with a Franchise Disclosure Document. The Securities Division intends to order the Respondents to cease and desist from violations of RCW 19.100.020 and RCW 19.100.080, the registration and disclosure document portions of the Franchise Investment Protection Act. Respondents Michael Pucci, Ashley Zdeb and Dystopia Rising, LLC each has an opportunity for hearing in this matter.
A Consent Order was entered regarding this matter on January 12, 2016.
CBMed, LLC; Roland Clarke aka Rory Clarke – S-14-1406-15-SC01 – Statement of Charges
On December 14, 2015, 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, CBMed, LLC and Roland Clarke aka Rory Clarke. The Statement of Charges alleges that the Respondents offered and sold investments promissory notes and LLC membership units to at least 26 investors, 21 of whom were Washington residents. Respondents raised at least $458,000 through these investments. The Statement of Charges alleges that in selling these investments, Respondents violated the anti-fraud and securities registration sections of the Securities Act of Washington (“the Act”), and that Respondent Roland Clarke aka Rory Clarke violated the securities salesperson registration section of the Act. The Statement of Charges gives notice of the Securities Division’s intent to order Respondents to cease and desist from violating the Act, to impose fines and to charge costs. Respondents have the right to request a hearing on the Statement of Charges.
A Consent Order was entered regarding this matter on January 26, 2016.
Minerva Organics, LLC; Thrive Everywhere, Inc.; Monika Kinsman; and Achille Bigliardi III – S-14-1473-15-CO01 – Consent Order
On December 14, 2015, the Securities Division entered into a Consent Order with Minerva Organics, LLC; Thrive Everywhere, Inc.; Monika Kinsman; and Achille Bigliardi III ("Respondents"). The Consent Order alleges that the Respondents sold LLC membership interests, promissory notes, and common stock to Washington investors. The Consent Order further alleges that these sales were in violation of the registration and anti-fraud provisions of the Securities Act of Washington ("the Act"). Without admitting or denying the Securities Division’s allegations, Respondents agreed to cease and desist from violating the registration and anti-fraud provisions of the Act. Respondents paid fines and investigative costs of $5,000. Respondents waived their right to a hearing and judicial review of this matter.
Michael Andre Jones - S-14-1478-15-CO01 – Consent Order
On November 13, 2015, the Securities Division entered into a Consent Order with Michael Andre Jones (“Respondent”). The Securities Division had previously entered a Statement of Charges against Respondent on July 25, 2014 and an Amended Statement of Charges against Respondent on April 6, 2015. The Securities Division alleged that Respondent had violated RCW 21.20.010, the anti-fraud provision of the Securities Act of Washington, by offering and selling investments totaling $125,000 to two Washington investors while failing to disclose material information about the investments, including the intended use of funds and the risks of the investments. Without admitting or denying the Securities Division’s allegations, Respondent agreed to cease and desist from any violation of RCW 21.20.010. Respondent agreed to repay the two investors, to pay a fine of $15,000, and to pay investigative costs of $5,000. Respondent agreed to make full payment of all obligations before submitting any application for registration to the Securities Division. Respondent waived his right to a hearing and to judicial review of this matter.
Regal Energy, L.L.C.; Regal Blessing #1 Joint Venture; Regal Boonsville #2 Joint Venture; Regal Waggoner #1 Joint Venture; Regal Waggoner #2 Joint Venture; Regal Cosper #1 Joint Venture; Regal Pierce #1 Joint Venture; Scott Bradley Johnson - S-14-1508-15-SC01 - Statement of Charges
On November 12, 2015, 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 Regal Energy, L.L.C.; Regal Blessing #1 Joint Venture; Regal Boonsville #2 Joint Venture; Regal Waggoner #1 Joint Venture; Regal Waggoner #2 Joint Venture; Regal Cosper #1 Joint Venture; Regal Pierce #1 Joint Venture; and Scott Bradley Johnson (collectively “Respondents”). The Statement of Charges alleges that Respondents raised approximately $661,978 from five Washington residents by offering and selling interests in six oil and gas drilling projects located in Texas. The Statement of Charges further alleges that Respondent Johnson acted as an unregistered broker-dealer and/or securities salesperson and that two of the offerings were unregistered. The Statement of Charges also alleges that the offer and sale of securities by the Respondents violated the anti-fraud provision of the Securities Act of Washington. The Securities Division ordered Respondents to cease and desist from violating the securities registration, broker-dealer and/or securities salesperson registration and anti-fraud provisions of the Securities Act of Washington. The Securities Division gave notice of its intent to collect fines and charge costs. Respondents have a right to request a hearing on the Statement of Charges.
A Consent Order was entered on March 7, 2017.
Donald Charles Sukin d.b.a. MBA Business Brokers - S-15-1651-15-SC01 - Statement of Charges
On November 10, 2015, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist against Respondent Donald Charles Sukin (“Sukin”) d.b.a. MBA Business Brokers alleging that Sukin violated the Franchise Investment Protection Act by offering franchises in Washington while not registered as a franchise broker and misrepresented and failed to disclose material facts in connection with the offer of a franchise. The Securities Division intends to order Sukin to cease and desist from violations of RCW 19.100.140 and RCW 19.100.170, the franchise broker registration and anti-fraud portions of the Franchise Investment Protection Act. Donald Charles Sukin has an opportunity for hearing in this matter.
A Final Order was entered regarding this matter on November 10, 2016.
Summit Asset Strategies Investment Management, L.L.C.; Summit Asset Strategies Wealth Management, L.L.C.; Chris Young Yoo, Respondents – S-14-1507-15-FO01 – Final Order
On October 30, 2015, the Securities Division entered Final Order S-14-1507-15-FO01 denying the investment adviser applications of Respondents Summit Asset Strategies Investment Management, L.L.C. and Summit Asset Strategies Wealth Management, L.L.C. and revoking the investment adviser representative registration of Respondent Chris Young Yoo as a result of Respondents being the subject of an order by the Securities and Exchange Commission. Respondents have a right to request judicial review of the matter.
TVDeeBee, Inc; Robert O. Lee - S-14-1522-15-FO01 - Final Order
On October 22, 2015, the Securities Division entered a Final Order against TVDeeBee, Inc. and its president Robert Lee (collectively, “respondents”). The Division had previously entered a Statement of Charges against the respondents. The Final Order finds that TVDeeBee, through Lee, offered and sold at least $124,500 worth of its stock to at least seven investors, at least five of whom were Washington residents. The Final Order further finds that in doing so, the respondents violated the Securities Act of Washington’s (the Act) securities registration and anti-fraud provisions and that Lee violated the Act’s securities salesperson registration provision. The Final Order orders the respondents to cease and desist from violating the Act, to pay fines, and to reimburse the Division its investigative costs. The respondents may request judicial review of the Final Order.
Melvin Dale Love – S-15-1751-15-CO01 – Consent Order
On October 9th, 2015, the Securities Division entered Consent Order S-15-1751-15-CO01 with Melvin Dale Love (“Consent Order”). Mr. Love (CRD # 1915028) is registered as a Washington state sole proprietor investment adviser doing business as Melvin Love Investment Advisor (IARD #114092). In the Consent Order Mr. Love agreed to a revocation of his investment advisor registration, the denial of future registrations, to not provide investment advisory services to any Washington residents, and to not act as an issuer for any securities offered in Washington state. Respondent waived his right to a hearing and judicial review of the matter.
John Fitzpatrick Boles aka Johnny Boles – S-12-1065-15-CO05 – Consent Order
On October 6th, 2015, the Securities Division entered a Consent Order with Respondent John Fitzpatrick Boles aka Johnny Boles (“Boles”). The Securities Division had previously entered a Statement of Charges alleging that Boles violated the anti-fraud section of the Securities Act of Washington by offering and selling promissory notes and limited liability membership interests to at least two Washington residents totaling at least $75,000. Without admitting or denying the Security Division’s allegations, Boles agreed to cease and desist from violating the Securities Act, and to pay $250 in fines and $250 in investigative costs. Boles waived his right to a hearing and judicial review of the matter.
John Fitzpatrick Boles aka Johnny Boles – S-12-1065-15-CO04 – Consent Order
On October 6th, 2015, the Securities Division entered a Consent Order with Respondent John Fitzpatrick Boles aka Johnny Boles (“Boles”). The Securities Division had previously entered a Statement of Charges alleging that Boles violated the anti-fraud section of the Securities Act of Washington by offering and selling an investment contract to a Washington resident that purported to pool the investor’s funds with the Respondents’ to invest in a high-yield investment program that included an SFF guarantee in the form of a promissory note. Without admitting or denying the Security Division’s allegations, Boles agreed to cease and desist from violating the Securities Act, and to pay $250 in fines and $250 in investigative costs. Boles waived his right to a hearing and judicial review of the matter.
Samson Wattenberg Drilling Fund, LLP – S-12-1066-15-FO10 – Final Order
On October 6th, 2015, the Securities Division entered a Final Order to Cease and Desist against Samson Wattenberg Drilling Fund, LLP. The Securities Division previously entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Recover Costs against Samson Wattenberg Drilling Fund, LLP and others on April 20, 2015 in connection with the offer and sale of limited liability partnership membership units in oil and gas companies. In the Final Order, the Securities Division finds that Samson Wattenberg Drilling Fund, LLP offered and sold unregistered securities in violation of RCW 21.20.140 and that Samson Wattenberg Drilling Fund, LLP violated the anti-fraud provision of the Securities Act of Washington. The Securities Division orders Samson Wattenberg Drilling Fund, LLP to cease and desist from violating the Securities Act of Washington. Samson Wattenberg Drilling Fund, LLP has the right to request judicial review of this matter.
Bonefish Grill, LLC – S-15-1776-15-CO01 – Consent Order
On October 1st, 2015, the Securities Division entered into a Consent Order with Bonefish Grill, LLC (“Respondent”). The Consent Order orders the Respondent to cease and desist from any violations of RCW 19.100.020, the registration section of the Franchise Investment Protection Act. The Consent Order also orders the Respondent to cease and desist from any violation of RCW 19.100.080, the franchise disclosure document section of the Franchise Investment Protection Act. Without admitting or denying any violations, the Respondent agreed to pay investigative costs of $2,000. The Respondent waived their right to a hearing and to judicial review of the matter.
Rudolpho Gomez a/k/a Rudy Gomez – S-12-1066-15-FO09 – Final Order
On September 21, 2015, the Securities Division entered a Final Order to Cease and Desist, Impose Fines, and Recover Costs against Rudolpho Gomez a/k/a Rudy Gomez (“Gomez”). The Securities Division previously entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Recover Costs against Gomez and others on April 20, 2015 in connection with the offer and sale of limited liability partnership membership units in oil and gas companies. In the Final Order, the Securities Division finds that Gomez offered and sold unregistered securities, acted as an unregistered broker-dealer or securities salesperson, and violated the anti-fraud provision of the Securities Act of Washington. The Securities Division orders Gomez to cease and desist from violating the Securities Act of Washington, and to pay a fine of $10,000 and costs of $500. Gomez has a right to request judicial review of this matter.
Elvis Mendes a/k/a Ron Mendes – S-12-1066-15-FO08 - Final Order
On September 21, 2015, the Securities Division entered a Final Order to Cease and Desist, Impose Fines, and Recover Costs against Elvis Mendes a/k/a Ron Mendes (“Mendes”). The Securities Division previously entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Recover Costs against Mendes and others on April 20, 2015 in connection with the offer and sale of limited liability partnership membership units in oil and gas companies. In the Final Order, the Securities Division finds that Mendes offered and sold unregistered securities, acted as an unregistered broker-dealer or securities salesperson, and violated the anti-fraud provision of the Securities Act of Washington. The Securities Division orders Mendes to cease and desist from violating the Securities Act of Washington, and to pay a fine of $10,000 and costs of $500. Mendes has a right to request judicial review of this matter.
Mayer Etkin; Shangye Capital Partners - S-15-1649-15-FO01 - Final Order
On September 18, 2015, the Securities Division issued an Entry of Findings of Fact and Conclusions of Law and Final Order to Cease and Desist and to Charge Costs (“Final Order”) against Respondent Mayer Etkin d/b/a Shangye Capital Partners (“Etkin”). The Division had entered a Summary Order to Cease and Desist and Notice of Intent to Charge Costs against Etkin on August 20, 2015. Etkin posted unregistered securities offerings online and failed to disclose information material to the offerings in violation of the Securities Act of Washington. The Final Order orders Etkin to cease and desist from violating RCW 21.20.140, RCW 21.20.040, and RCW 21.20.010 and to pay costs of $1,000. Etkin has a right to request judicial review of the Final Order.
Summit Asset Strategies Investment Management, L.L.C.; Summit Asset Strategies Wealth Management, L.L.C.; Chris Young Yoo, Respondents – S-14-1507-15-SC01 – Statement of Charges
On September 14, 2015 the Securities Division entered Statement of Charges S-14-1507-15-SC01 giving notice of the intent to deny the investment adviser applications of Respondents Summit Asset Strategies Investment Management, L.L.C. and Summit Asset Strategies Wealth Management, L.L.C. and to revoke the investment adviser representative registration of Respondent Chris Young Yoo as a result of Respondents being the subject of an order by the Securities and Exchange Commission. Respondents have a right to a hearing on the matter.
A Final Order was entered regarding this matter on October 30, 2015.
JRS Investments and Wealth Preservation, LLC – S-15-1748-15-CO01 – Consent Order
On September 10, 2015, the Securities Division entered Consent Order S-15-1748-15-CO01 with JRS Investments and Wealth Preservation, LLC (“Consent Order”). In the Consent Order JRS Investments and Wealth Preservation, LLC (IARD #146933) agreed to cease and desist from violating the Washington Securities Act by acting as an unregistered investment adviser. Respondent also agreed to pay a fine of $6,346. Respondent waived their right to a hearing and judicial review of the matter.
Security First Financial, LLC and Robert Martin Darling – S-12-1065-15-CO02 – Consent Order
On September 9, 2015, the Securities Division entered a Consent Order with Respondents Security First Financial, LLC (“SFF”) and Robert Martin Darling (“Darling”). The Securities Division had previously entered a Statement of Charges alleging that SFF and Darling violated the anti-fraud section of the Securities Act of Washington by offering and selling an investment contract to a Washington resident that purported to pool the investor’s funds with the Respondents’ to invest in a high-yield investment program that included an SFF guarantee in the form of a promissory note. Without admitting or denying the Security Division’s allegations, SFF and Darling agreed to cease and desist from violating the Securities Act, and Darling agreed to pay $125 in fines and $125 in investigative costs. SFF and Darling waived their right to a hearing and judicial review of the matter.
Security First Financial, LLC and Robert Martin Darling – S-12-1065-15-CO01 – Consent Order
On September 9, 2015, the Securities Division entered a Consent Order with Respondents Security First Financial, LLC (“SFF”) and Robert Martin Darling (“Darling”). The Securities Division had previously entered a Statement of Charges alleging that SFF and Darling violated the anti-fraud section of the Securities Act of Washington by offering and selling promissory notes and limited liability membership interests to at least two Washington residents totaling at least $75,000. Without admitting or denying the Security Division’s allegations, SFF and Darling agreed to cease and desist from violating the Securities Act, and Darling agreed to pay $125 in fines and $125 in investigative costs. SFF and Darling waived their right to a hearing and judicial review of the matter.
Comp Cost Solutions Cooperative Marketing Company, LLC; Richard Kruckeberg; Willem Drost; Barry Thomas – S-13-1268-15-SC01 – Statement of Charges
On September 9, 2015, 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 Comp Cost Solutions Cooperative Marketing Company, LLC; Richard Kruckeberg; Willem Drost; and Barry Thomas. The Statement of Charges alleges that Respondents sold LLC membership units and promissory notes totaling over $1.1 million to investors, including at least six Washington residents. The Statement of Charges alleges that Respondents violated the anti-fraud and registration sections of the Securities Act of Washington. The Statement of Charges gives notice of the Securities Division’s intent to order Respondents to cease and desist from violating the Act, to impose fines and to charge costs. Respondents have the right to request a hearing on the Statement of Charges.
A Consent Order was entered regarding this matter on January 19, 2016.
Citigroup Global Markets, Inc. - S-15-1706-15-CO01 - Consent Order
On August 31, 2015, the Securities Division entered into a consent order with Citigroup Global Markets, Inc. The Securities Division alleged that Citigroup Global Markets, Inc. sales assistants accepted unsolicited orders from clients residing in states where the sales assistants were not registered. The Securities Division further alleged that Citigroup Global Markets, Inc. failed to establish an adequate supervisory system to monitor the registration status sales assistants accepting client orders. Citigroup Global Markets, Inc. neither admitted, nor denied these allegations, but agreed to pay a $35,000 fine. Citigroup Global Markets, Inc. waived its right to a hearing and to judicial review of this matter.
Katana Capital, LLC, Robert Kevin Niewijk, Charles Maximillian Songhurst - S-15-1770-15-SC01 – Statement of Charges
On August 28, 2015, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Deny Future Registrations, to Impose Fines, and to Charge Costs against Katana Capital, LLC (“Katana Capital”), Robert Kevin Niewijk (“Niewijk”), and Charles Maximillian Songhurst (“Songhurst”) (collectively, “Respondents”). The Statement of Charges alleges that Katana Capital violated the auditing requirements for its pooled investment vehicle, Katana Fund, L.P. (“Katana Fund”), when it omitted certain investments from the Katana Fund financial statements. The Statement of Charges further alleges that Katana Capital filed false and/or misleading documents with the Director of the Securities Division when, on four separate occasions, it stated that its Katana Fund audits contained unqualified opinions. Niewijk and Songhurst, as managing members and principal owners of Katana Capital, are responsible for Katana Capital’s alleged violations. The Statement of Charges gives notice to Respondents of the Securities Division’s intent to order the respondents to cease and desist from violating the Securities Act of Washington, to deny future registration applications, to impose fines, and to charge costs. Respondents have a right to request a hearing on the Statement of Charges.
A Consent Order was entered regarding this matter on April 19, 2016.
S-12-1066-15-FO07 - Stephen M. Thompson; Leland Energy, Inc.; Leland Kentucky Holdings, Inc.; Leland Colorado Holdings, Inc.; Leland Tennessee Holdings, Inc.; The Appalachian Drilling Fund II, LLP; The Knox Drilling Fund, LLP; The Knox Drilling Fund II, LLP; Green County Energy Fund, LLP; Rodgers Production Revenue Fund, LLP; Block City Drilling Fund, LLP; Energy Production Revenue Fund, LLP; Production Revenue Drilling Fund, LLP; Asset Management Drilling Fund, LLP; Weld County Drilling Fund, LLP; Wattenberg Drilling Fund, LLP; Wattenberg Drilling Fund II, LLP; Greeley Wattenberg Drilling Fund, LLP; The Presidents Fund, LLP; The Leland Energy Fund, LLP; and The Leland Energy Fund, II, LLP – S-12– Final Order
On August 28, 2015, the Securities Division entered a Final Order to Cease and Desist, Impose Fines, and Recover Costs against Stephen M. Thompson; Leland Energy, Inc.; Leland Kentucky Holdings, Inc.; Leland Colorado Holdings, Inc.; Leland Tennessee Holdings, Inc.; The Appalachian Drilling Fund II, LLP; The Knox Drilling Fund, LLP; The Knox Drilling Fund II, LLP; Green County Energy Fund, LLP; Rodgers Production Revenue Fund, LLP; Block City Drilling Fund, LLP; Energy Production Revenue Fund, LLP; Production Revenue Drilling Fund, LLP; Asset Management Drilling Fund, LLP; Weld County Drilling Fund, LLP; Wattenberg Drilling Fund, LLP; Wattenberg Drilling Fund II, LLP; Greeley Wattenberg Drilling Fund, LLP; The Presidents Fund, LLP; The Leland Energy Fund, LLP; and The Leland Energy Fund, II, LLP (collectively the “Leland Parties”). The Securities Division previously entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Recover Costs against the Leland Parties and others on April 20, 2015 in connection with the offer and sale of limited liability partnership membership units in oil and gas companies. In the Final Order, the Securities Division finds that the Leland Parties offered and sold unregistered securities in violation of RCW 21.20.140. The Securities Division further finds that the Leland Parties violated the anti-fraud provision of the Securities Act of Washington. The Securities Division further finds Stephen M. Thompson and Leland Energy, Inc. acted as an unregistered broker-dealer or securities salesperson in violation of RCW 21.20.040 The Securities Division orders the Leland Parties to cease and desist from violating the Securities Act of Washington. The Securities Division further orders Stephen M. Thompson to pay a fine of $100,000 and to pay costs in the amount of $5,000. The Securities Division further orders Leland Energy, Inc. and its subsidiaries shall be jointly and severally liable for and shall pay a fine in the amount of $100,000 and to pay costs in the amount of $5,000. Each of the Leland Parties has a right to request judicial review of this matter.
John Charles Hanson – S-14-1592-15-SC01 - Statement of Charges
On August 24, 2015, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, To Deny Future Registrations, To Impose Fines, and To Charge Costs ("Statement of Charges") against Respondent John Charles Hanson (“Hanson”). The Statement of Charges alleges that Hanson sold fictitious investments and made unauthorized withdrawals and policy loans from the accounts of his advisory clients, totaling at least $2.4 million. Hanson is believed to have used these funds for his personal expenses. The Statement of Charges alleges that Hanson violated the anti-fraud and registration sections of the Securities Act of Washington. The Statement of Charges gives notice of the Securities Division’s intent to order Hanson to cease and desist from violating the Act, to deny any future applications for registration in the securities industry, to impose fines and to charge costs. Hanson has the right to request a hearing on the Statement of Charges.
A Consent Order was entered regarding this matter on January 4, 2016.
Wolfe Capital Group, LLC and James Bernard Wolfe – S-13-1225-15-FO01 – Final Order
On August 20, 2015, the Securities Division entered a Final Order to Cease and Desist, to Impose a Fine, and to Charge Costs against Respondents Wolfe Capital Group, LLC (“WCG”) and James Bernard Wolfe (“Wolfe”). The Securities Division had previously entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Impose Fines and to Charge Costs against WCG, Wolfe and others in connection with the offer and sale of real estate investment contracts. In the Final Order, the Securities Division finds that WCG and Wolfe offered and sold unregistered securities, acted as an unregistered broker-dealer or securities salesperson, and violated the anti-fraud provision of the Securities Act of Washington (“the Act”). The Securities Division orders WCG and Wolfe to cease and desist from violating the Act, and orders Wolfe to pay a fine of $20,000 and costs of $2,500. WCG and Wolfe have a right to request judicial review of the matter.
Mayer Etkin d/b/a Shangye Capital Partners – S-15-1649-15-TO01 - Summary Order
On August 20, 2015, the Securities Division entered a Summary Order to Cease and Desist and Notice of Intent to Charge Costs (“Summary Order”) against Mayer Etkin d/b/a Shangye Capital Partners (“Etkin”). The Summary Order alleges that Etkin posts unregistered securities offerings online and fails to disclose information material to the offerings in violation of the Securities Act of Washington. Further, the Division finds that continued violations of the Securities Act of Washington constitute a threat to the investing public, and it enters the Summary Order to Cease and Desist immediately. The Summary Order gives notice of the Division’s intent to charge costs of $1,000. Etkin has an opportunity for a hearing on this matter.
A Final Order was entered regarding this matter on September 18, 2015.
Damon Vickers; Frank H. Black; Southeast Investments, N.C., Inc. S-11-0597-14-SC01 - Statement of Charges.
On August 19, 2015, the Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Deny Future Registrations, Suspend Current Registrations, Impose Fines, and Charge Costs against Damon Vickers, Frank H. Black, and Southeast Investments, N.C., Inc. (collectively “Respondents”). Vickers engaged in excessive trading in his customers’ discretionary brokerage accounts. From 2009 through 2012, due to the excessive trading and use of a commission-based compensation structure, Vickers generated approximately $5.3 million dollars in commissions from trading his customer accounts. The commissions received by Vickers were unreasonable and constituted a high percentage of the customer’s average portfolio value. The commissions were also unreasonable compared to what customers would have been charged with fee-based accounts. Black was the designated supervisor for Vickers, who while subject to Black’s supervision violated the Securities Act of Washington. The Securities Division alleges that Black failed to reasonably supervise Vickers by approving his commission schedule. The Securities Division further alleges that Southeast Investments failed to maintain adequate supervisory policies and procedures regarding the review of discretionary accounts, and as a result Black failed to adequately review Vickers’ accounts for excessive trading. 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 impose fines, to recover costs, and to deny and suspend securities registrations. The Respondents have a right to request a hearing on the Statement of Charges.
A Consent Order as to Frank H. Black; Southeast Investments,N.C., Inc was entered on March 14, 2016.
A Consent Order as to Damon Vickers was entered on March 9, 2016.
Trend Sound Promoter AMG Corp. – S-14-1482-15-FO01 – Final Order
On August 18, 2015, the Securities Division entered a Final Order against Trend Sound Promoter AMG Corp. The Securities Division had previously entered a Statement of Charges against Trend Sound Promoter AMG Corp., Volodimyr Pigida, and Marina Bondarenko, alleging that the respondents violated the Business Opportunity Fraud Act through their offer and sale of an Internet marketing business opportunity to approximately 6,750 purchasers worldwide. The Final Order orders Trend Sound Promoter AMG Corp. to cease and desist from violating the registration, disclosure document, business opportunity contract, and anti-fraud provisions of the Business Opportunity Fraud Act. Trend Sound Promoter AMG Corp. has the right to request judicial review of the Final Order.
John Joseph Sanchez – S-12-1076-14-CO01 - Consent Order
On August 18, 2015, the Securities Division entered into a Consent Order with John Joseph Sanchez (“Respondent”). The Securities Division had previously entered a Statement of Charges against Respondent on October 18, 2013. The Securities Division alleged that Respondent had violated RCW 21.20.010, the anti-fraud provision of the Securities Act of Washington, by offering and selling two investments totaling $110,000 and by failing to disclose material information about the investments, including the risks of the investments. Without admitting or denying the Securities Division’s allegations, Respondent agreed to cease and desist from any violation of RCW 21.20.010. Respondent agreed to pay a fine totaling $2,000 and investigative costs of $500. Respondent agreed that if he was found to have violated the Consent Order within one year after its entry, then Respondent would surrender his mortgage loan officer registration and would not apply for re-registration for a period of at least two years. Respondent waived his right to a hearing and to judicial review of this matter.
Higher Order Technologies, LLC and Mitchell Eggers – S-15-1699-15-CO01 – Consent Order
On August 18, 2015, the Securities Division entered Consent Order and Order Vacating Summary Order S-15-1699-15-CO01 with Higher Order Technologies, LLC and Mitchell Eggers (“Consent Order”). Higher Order Technologies (IARD # 165947) was a registered investment adviser located in Mercer Island, Washington. Mitchell Eggers (CRD # 6133284) was the managing member of Higher Order Technologies. Respondents withdrew the investment adviser application for Higher Order Technologies, LLC and provided a 2014 fiscal year-end balance sheet and a final private audit. Respondent, Higher Order Technologies agreed to pay a fine of $2,000 and costs of $200. Respondents have waived their right to request judicial review of the matter.
Travis Moegling, Partner Fund LLC - S-15-1619-15-FO01 - Final Order
On August 18, 2015, the Director of the State of Washington Department of Financial Institutions entered a Final Order against Travis Moegling and Partner Fund, LLC (collectively, “Respondents”). The Final Order orders the Respondents to cease and desist from any further violations of 21.20.010, RCW 21.20.040, and RCW 21.20.140. The Final Order also orders Respondent Travis Moegling to pay a fine of $15,000 and to pay investigative costs of $1,000. The Respondents have the right to petition the superior court for judicial review of the Final Order.
Feisal Ramjee, EP Development, Inc., and MB Development, Inc. - S-14-1555-15-CO01 - Consent Order
On August 17, 2015, the Securities Division entered into a Consent Order with Feisal Ramjee, EP Development, Inc., and MB Development, Inc. (the “Respondents”). On June 5, 2015, the Division previously entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist in which it was alleged that the Respondents violated the Franchise Investment Protection Act by offering franchises in Washington while not registered as a franchise broker. Further, it was alleged that Respondents provided a prospective franchisee with financial performance representations that did not contain all the material information about the representations including, but not necessarily limited to, the material basis and assumptions underlying the representations. The Respondents have agreed to cease and desist from violations of RCW 19.100.140 and RCW 19.100.170, the franchise broker registration and anti-fraud portions of the Franchise Investment Protection Act. The Respondents agreed to waive their right to a hearing and judicial review of the matter.
TVDeeBee, Inc.; Robert Lee - S-14-1522-14-SC01 - Statement of Charges
On July 31, 2015, the Securities Division entered a Statement of Charges against TVDeeBee, Inc. and its president Robert Lee. The order alleges that TVDeeBee, through Lee, offered and sold at least $124,500 worth of its stock to at least seven investors, at least five of whom were Washington residents. The order further alleges that in doing so, the respondents violated the Securities Act of Washington’s (the Act) securities registration and anti-fraud provisions and that Lee violated the Act’s securities salesperson registration provision. The order gives notice of the Division’s intent to order the respondents to cease and desist from violating the Act, to pay fines, and to reimburse the Division its investigative costs. The respondents may request an administrative hearing on the order.
A Final Order was entered regarding this matter on October 22, 2015.
ADV Solutions d/b/a PrimeCash.net - S-14-1599-15-SC01 - Statement of Charges
On July 30, 2015, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist against ADV Solutions d/b/a PrimeCash.net. The Securities Division alleges that the Respondent violated the Business Opportunity Fraud Act through the offer and sale of a business opportunity to an elderly Washington resident. The Securities Division alleges that the Respondent violated the registration and disclosure document provisions of the Business Opportunity Fraud Act, and gives notice of its intent to enter an Order to Cease and Desist. The Respondent has a right to request a hearing on the Statement of Charges.
A Final Order was entered regarding this matter on January 25, 2016.
Southern Hospitality, LLC; MGI Real Estate Investments, LLC; and Jody L. Marshall - S-14-1583-15-SC01 - Statement of Charges
On July 28, 2015, 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 Southern Hospitality, LLC; MGI Real Estate Investments, LLC; and Jody L. Marshall (“Respondents”). The Statement of Charges alleges that Respondents violated the anti-fraud provision of the Securities Act of Washington when they failed to disclose material facts in the offer and sale of a $100,000 secured promissory note investment to a Washington investor. The Securities Division intends to order Respondents to cease and desist from violating the Securities Act of Washington, to impose an administrative fine, and to charge investigative costs. Respondents each have a right to request a hearing on the Statement of Charges.
A Consent Order was entered regarding this matter on April 8, 2016.
Saves, Inc.; and Michael Ray Snodgrass – S-13-1225-15-CO01 – Consent Order
On July 28, 2015, the Securities Division entered into a Consent Order with Respondents Michael Ray Snodgrass and Saves, Inc. The Securities Division had previously entered a Statement of Charges alleging that these Respondents violated the Securities Act of Washington by offering and selling promissory notes, and that Respondent Snodgrass violated the Act by offering and selling an investment contract in a real estate scheme. Without admitting or denying the Security Division’s allegations, Michael Ray Snodgrass and Saves, Inc. agreed to cease and desist from violating the Securities Act and to pay $2,500 in fines and $2,500 in investigative costs. These Respondents waived their right to a hearing and judicial review of the matter.
Samson Investment Group, LLC – S-12-1066-15-CO03 – Consent Order
On July 14, 2015, the Securities Division entered a Consent Order with Samson Investment Group, LLC (“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 Recover Costs against Respondent and others on April 20, 2015 in connection with the offer and sale of limited liability partnership membership units in an oil and gas company. The Securities Division alleged that Respondent violated RCW 21.20.010 and RCW 21.20.140 in connection with the offering of unregistered securities. Without admitting or denying the Securities Division’s allegations, Respondent has agreed to cease and desist from violating the Securities Act of Washington. Respondent agreed to pay costs of $250. Respondent waived its right to a hearing and judicial review of this matter.
Samson Energy Group, LLC – S-12-1066-15-CO02 – Consent Order
On July 14, 2015, the Securities Division entered a Consent Order with Samson Energy Group, LLC (“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 Recover Costs against Respondent and others on April 20, 2015 in connection with the offer and sale of limited liability partnership membership units in an oil and gas company. The Securities Division alleged that Respondent violated RCW 21.20.010 and RCW 21.20.140 in connection with the offering of unregistered securities. Without admitting or denying the Securities Division’s allegations, Respondent has agreed to cease and desist from violating the Securities Act of Washington. Respondent agreed to pay a fine of $5,000 and costs of $2,000. Respondent waived its right to a hearing and judicial review of this matter.
American Business Alliance, Inc. d/b/a Business Alliance - S-14-1510-15-CO01 - Consent Order
On July 7, 2015, the Securities Division entered into a Consent Order with American Business Alliance, Inc. d/b/a Business Alliance (“Respondent”). The Consent Order alleges that Respondent sold over four hundred unregistered business opportunities from Washington State in violation of the registration provision of the Business Opportunity Fraud Act of Washington (“the Act”). Without admitting or denying the Securities Division’s allegations, Respondent agreed to cease and desist from violating the registration provision of the Act. Respondent paid investigative costs of $1,000. Respondent waived its right to a hearing and judicial review of this matter.
TreeFree Biomass Solutions, Inc.; Eulysses B. Lewis - S-14-1496-14-SC01 - Statement of Charges
On July 6, 2015, the Securities Division entered a Statement of Charges against TreeFree Biomass Solutions, Inc. (“TreeFree”) and its president Eulysses B. Lewis (“Lewis”) (collectively, “Respondents”). The order alleges that TreeFree sold at least $9 million of its stock to no fewer than seven hundred investors, a majority of which were Washington residents. In doing so, the order further alleges, Respondents violated the Securities Act of Washington’s (the “Act”) securities registration and anti-fraud provisions, and Lewis violated the Act’s securities salesperson registration provision. The order gives notice of the Division’s intent to order Respondents to cease and desist from violating the Act, to impose fines, and to charge investigative costs. Respondents may request an administrative hearing on the order.
A Consent Order as to Eulysses B. Lewis was entered on January 4, 2016.
Randall L. Harper, a.k.a. Randy Harper and d.b.a. Jackson Hewitt Tax Service and RL Harper, LLC - S-14-1531-15-CO02 - Consent Order
On July 1, 2015, the Securities Division entered into a Consent Order with Randall L. Harper, a.k.a. Randy Harper and d.b.a. Jackson Hewitt Tax Service and RL Harper, LLC. The Securities Division had previously entered a Statement of Charges against Randall L. Harper, a.k.a. Randy Harper and d.b.a. Jackson Hewitt Tax Service and RL Harper, LLC, alleging that they violated the registration and anti-fraud provisions of the Securities Act of Washington through the offer and sale of loans/promissory notes and/or a limited liability company interest to clients of Harper’s tax preparation business. Without admitting or denying the Securities Division’s allegations, Randall L. Harper and RL Harper, LLC agreed to cease and desist from violating the Securities Act of Washington. Randall L. Harper and RL Harper, LLC waived their right to a hearing and judicial review of this matter.
Billy Levon Harper, a.k.a. Bill Harper - S-14-1531-15-CO01 - Consent Order
On July 1, 2015, the Securities Division entered into a Consent Order with Respondent Billy Levon Harper, a.k.a. Bill Harper. The Securities Division had previously entered a Statement of Charges against Billy “William” Levon Harper alleging that he violated the registration and anti-fraud provisions of the Securities Act of Washington through the offer and sale of promissory notes for his son’s tax preparation business. Without admitting or denying the Securities Division’s allegations, Billy Levon Harper agreed to cease and desist from violating the Securities Act of Washington. Billy Levon Harper waived his right to a hearing and judicial review of this matter.
Cecil Franklin "Buz" Smith, Upstream Solutions, and Truth North Tours - S-12-1080-14-FO01 - Final Order
On July 1, 2015, the Securities Division entered a Final Order against Respondents Cecil Franklin Smith, Jr., a.k.a. Buz Smith and a.k.a. Frank Smith (Smith) (and also doing business as Northwest All-Inclusive Tours and All-Inclusive Tours, Inc.), Upstream Solutions, LLC (Upstream) and True North Tours, Inc., d.b.a. Discover the Northwest Tours, Inc. (True North). The Securities Division had previously entered a Statement of Charges against Smith, Upstream, and True North alleging that the Respondents Smith, Upstream and True North offered and/or sold investments in the form of loans/promissory notes and an investment contract to at least three investors and borrowed about $74,500. The Securities Division alleged that the Respondents violated the anti-fraud section and securities registration section of the Securities Act of Washington (the Act), and that Respondent Smith violated the securities broker/salesperson registration section of the Act. The Final Order orders the Respondents Smith, Upstream to cease and desist from violating the Act, to pay a fine of $10,000, and to pay investigative costs of $8,000. Respondents Smith, Upstream, and True North each have the right to request judicial review of the Final Order.
Trend Sound Promoter AMG Corp.; Volodimyr Pigida; Marina Bondarenko - S-14-1482-15-SC01 - Statement of Charges
On June 26, 2015, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist against Trend Sound Promoter AMG Corp., Volodimyr Pigida, and Marina Bondarenko (“Respondents”). In the Statement of Charges, the Securities Division alleges that Respondents violated the Business Opportunity Fraud Act of Washington’s registration, disclosure document, business opportunity contract, and anti-fraud provisions through their Internet marketing scheme. The Statement of Charges gives notice of the Securities Division’s intent to enter an Order to Cease and Desist. Respondents have a right to request a hearing on the Statement of Charges.
A Final Order was entered regarding this matter on August 18, 2015.
A Consent Order as to Volodimyr Pigida and Marina Bondarenko was entered on January 7, 2016.
Blair Smith, S-14-1461-14-CO01– Consent Order
On June 25, 2015, the Securities Division entered into a Consent Order with Blair Smith (“Respondent”). The Securities Division alleges that after entering into a Consent Order with Smith on November 19, 2012 to settle allegations that Smith failed to register as an investment adviser for over eleven years, Smith continued to provide investment advisory services for compensation from his residency in Bellingham, Washington without registration between November 19, 2012 and January 14, 2015. The Securities Division further alleges that Blair Smith failed to maintain all the books and records required of investment advisers, including client contracts. The Respondent neither admitted nor denied the allegations, but agreed to cease and desist from violating the investment adviser registration provision of the Securities Act of Washington, and to pay a fine of $15,000. The Respondent waived his right to a hearing and to judicial review of the matter.
Judith French Tronsrue - S-15-1684-15-CO01 - Consent Order
On June 24, 2015, the Securities Division entered into a Consent Order S-15-1684-15-CO01 with Judith French Tronsrue (“Consent Agreement”). Judith French Tronsrue (IARD # 115909) was a sole proprietor registered investment adviser that was at one time located in Seattle, Washington. In the Consent Order, Respondent agreed to withdraw its investment adviser registration, pay a fine of $1,000 and costs of $200. The Respondent waived its right to judicial review of the matter.
Moe Investment Management, LLC and Robert Moe - S-13-1231-14-CO01 - Consent Order
On June 24, 2015, the Securities Division entered a Consent Order S-13-1231-14-CO01 with Moe Investment Management, LLC and Robert Moe (“Consent Order”). Moe Investment Management, LLC, (CRD # 116082) is a registered investment adviser. Mr. Moe (CRD # 4458333) is a registered investment adviser representative and securities salesperson. The Consent Order alleged that between 2006 and 2013 Moe Investment Management and Mr. Moe violated RCW 21.20.020(1)(c); WAC 460-24A-130; WAC 460-24A-205; and WAC 460-24A-220(10), (20). The Consent Order includes a $7,500 fine and a four month suspension. Respondents waived their right to request judicial review of the matter.
Reve Enterprises, LLC and Jared Grochowksi - S-14-1607-15-CO01 - Consent Order
On June 24, 2015, the Securities Division entered into a Consent Order with Reve Enterprises, LLC and Jared Grochowski (“Respondents”). The Securities Division previously entered a Statement of Charges against the Respondents on May 1, 2015. The Statement of Charges alleged that the Respondents offered and sold at $100,000 of investments in Reve Enterprises, LLC to two Washington investors. 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 $1,000 for its costs of investigation. The Respondent waived his right to a hearing and to judicial review of the matter.
Higher Order Technologies, LLC; Mitchell Eggers - S-15-1699-15-TO01 - Summary Order
On June 24, 2015, the Securities Division entered Summary Order S-15-1699-15-TO01 against Higher Order Technologies, LLC and Mitchell Eggers (“Summary Order”). Higher Order Technologies (IARD # 165947) is a registered investment adviser located in Mercer Island, Washington. Mitchell Eggers (CRD # 6133284) is the managing member of Higher Order Technologies. The Summary Order alleged that Respondents willfully violated WAC 460-24A-060 by failing to file a year-end balance sheet for the year ended December 31, 2014. The Summary Order suspends the investment adviser registration of Higher Order Technologies, LLC; gives notice of an intent to revoke its registration, impose a fine of $1,000 for each respondent; and charge costs of $200. Respondents have a right to request judicial review of the matter.
IRA Wealth, Inc.; Patrick Warren Rice - S-15-1634-15-FO01 - Final Order
On June 24, 2015, the Securities Division entered a Final Order against IRA Wealth, Inc. and Patrick Warren Rice, Respondents. The Final Order alleged that Respondents offered and sold LLC membership interests totaling more than $2,000,000 to approximately 35 investors. The Final Order ordered Respondents to cease and desist from violating the Securities Act of Washington and revoked certain registration exemptions for Patrick Warren Rice and ordered Rice to pay a fine and investigative costs. Respondents each have the right to seek judicial review of the Final Order.
A Statement of Charges was entered regarding this matter on June 1, 2015.
BMC Worldwide, Inc. d/b/a Blue Moon Coins; Aaron Scott; Jamaal Brown; Liquid Assets Empire - S-14-1408-15-CO02 - Consent Order
On June 10, 2015, the Securities Division entered into a Consent Order with Jamaal Brown (“Respondent”). The Securities Division had previously issued a Statement of Charges, S-14-1408-14-SC01, against Respondent on April 18, 2014. The Securities Division alleged that the Respondent violated the prohibition on commodity transactions section of the Commodity Transaction Act of Washington by selling a commodity contract that was not exempt under RCW 21.30.030 or RCW 21.30.040. The Securities Division further alleged that the Respondent violated the commodity merchant registration section of the Act. Without admitting or denying these allegations, Respondent agreed to cease and desist from violating the Commodity Transactions Act and agreed to pay a fine of $1,000. Respondent waived his right to a hearing and judicial review of this matter.
Mike Kitson; Kitson Boards - S-14-1582-15-SC01 - Statement of Charges
On June 8, 2015, 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 Kitson Boards, Inc. and Michael H. Kitson (“Respondents”). The Statement of Charges alleges that Respondents violated the registration provisions of the Securities Act of Washington when they offered and sold at least $339,000 of unregistered securities to 18 Washington residents. Further, the Statement of Charges alleges that Respondents violated the anti-fraud provision of the Securities Act of Washington when they failed to disclose material facts in the offer and sale of these securities. The Securities Division intends to order Respondents to cease and desist from violating the Securities Act of Washington, to impose an administrative fine, and to charge investigative costs. Respondents each have a right to request a hearing on the Statement of Charges.
A Consent Order was entered regarding this matter on February 18, 2016.
Feisal Ramjee, EP Development, Inc., and MB Development, Inc. - S-14-1555-15-SC01 - Statement of Charges
On June 5, 2015, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist against Respondents, Feisal Ramjee, EP Development, Inc., and MB Development, Inc., alleging that the Respondents violated the Franchise Investment Protection Act by offering franchises in Washington while not registered as a franchise broker. Further, Respondents provided a prospective franchisee with financial performance representations that did not contain all the material information about the representations including, but not necessarily limited to, the material basis and assumptions underlying the representations. The Securities Division intends to order the Respondents to cease and desist from violations of RCW 19.100.140 and RCW 19.100.170, the franchise broker registration and anti-fraud portions 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 August 17, 2015.
Sally Jean Gray - S-08-263-15-FO01 - Final Order
On June 1, 2015, the Securities Division entered a Final Order against Sally Jean Gray (“Gray”). The Securities Division had previously entered a Statement of Charges against Gray alleging that she engaged in dishonest and unethical practices in the securities business by borrowing at least $230,000 from three clients over approximately a two year time period. The Final Order orders that any future application or registration of Gray as a broker-dealer, securities salesperson, investment adviser representative, or investment adviser be denied. Gray has a right to seek judicial review of the Final Order.
Patrick Warren Rick; IRA Wealth, Inc. - S-15-1634-15-SC01 - Statement of Charges
On June 1, 2015, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist, Revoke Exemptions, Impose a Fine, and Charge Costs (“Statement of Charges”) against IRA Wealth, Inc. and Patrick Warren Rice, Respondents. The Statement of Charges alleges that Respondents violated RCW 21.20.040 and RCW 21.20.140 by offering and selling unregistered securities while not registered as a securities broker-dealer or salesperson. The Statement of Charges also alleges that Respondents violated RCW 21.20.010, the anti-fraud provision of the Securities Act of Washington, by misrepresenting or failing to disclose material information when offering and selling ID 02 LLC membership interests totaling more than $2,000,000 to approximately 35 investors. The Securities Division intends to order Respondents to cease and desist from violating the Securities Act of Washington and gives notice of its intent to revoke exemptions, impose a fine, and charge costs. Respondents each have the right to request a hearing on the Statement of Charges.
A Final Order was entered regarding this matter on June 24, 2015.
Sarah Rose Sorensen; Sigh of Relief, Life and Financial, Inc.; SOR Capital, LLC - S-14-1538-15-FO01 - Final Order.
On May 22, 2015, the Securities Division entered a Final Order to Cease and Desist, Impose Fines, and Charge Costs against Sarah Rose Sorensen, Sigh of Relief, Life and Financial, Inc. (“Sigh of Relief”) and SOR Capital, LLC (collectively “Respondents”). The Securities Division previously entered a Statement of Charges against the Respondents on April 20, 2015. Sigh of Relief was a financial coaching business, founded by Sorensen that assisted clients with budgeting and real estate investing. On the Sigh of Relief website, Sorensen held herself and her business out as an investment adviser representative and investment adviser, respectively, although neither was registered in that capacity. The Securities Division alleged that Sorensen misappropriated $8,000 from a client’s retirement funds, and had the funds wired to a joint bank account with her estranged husband. The Securities Division further alleged that from July 2011 through May 2012, Sorensen and Sigh of Relief brokered promissory notes between clients so that the borrower could purchase budgeting software from her. Sorensen solicited clients to invest retirement funds through the promissory notes, with the expectation that the clients could earn returns of 8% to 10% per year. The Securities Division further alleged that between approximately July 2011 and April 2014, Sorensen and SOR Capital raised at least $190,500 from two investors through promissory notes. Sorensen purportedly used some of the funds for Sigh of Relief business expenses and to purchase real estate properties held by SOR Capital. The Securities Division orders the Respondents to cease and desist from violating the Securities Act of Washington, and to pay fines and investigative costs. The Respondents have the right to request judicial review of this matter.
Mongolia Holdings, Inc. f/k/a Consolidation Services, Inc. – S-12-1066-15-FO06 – Final Order
On May 22, 2015, the Securities Division entered a Final Order to Cease and Desist, Impose Fines, and Recover Costs against Mongolia Holdings, Inc. f/k/a Consolidation Services, Inc. (“CNSV”). The Securities Division previously entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Recover Costs against CNSV and others on April 20, 2015 in connection with the offer and sale of limited liability partnership membership units in oil and gas companies. In the Final Order, the Securities Division finds that CNSV offered and sold unregistered securities and violated the anti-fraud provision of the Securities Act of Washington. The Securities Division orders CNSV to cease and desist from violating the Securities Act of Washington, and to pay a fine of $10,000 and costs of $2,500. CNSV has a right to request judicial review of this matter.
Jerel Richardson – S-12-1066-15-FO05 – Final Order
On May 22, 2015, the Securities Division entered a Final Order to Cease and Desist, Impose Fines, and Recover Costs against Jerel Richardson (“Richardson”). The Securities Division previously entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Recover Costs against Richardson and others on April 20, 2015 in connection with the offer and sale of limited liability partnership membership units in oil and gas companies. In the Final Order, the Securities Division finds that Richardson offered and sold unregistered securities, acted as an unregistered broker-dealer or securities salesperson, and violated the anti-fraud provision of the Securities Act of Washington. The Securities Division orders Richardson to cease and desist from violating the Securities Act of Washington, and to pay a fine of $10,000 and costs of $500. Richardson has a right to request judicial review of this matter.
Ronelle Vallejo a/k/a Ron Vale – S-12-1066-15-FO03 – Final Order
On May 22, 2015, the Securities Division entered a Final Order to Cease and Desist, Impose Fines, and Recover Costs against Ronelle Vallejo a/k/a Ron Vale (“Vale”). The Securities Division previously entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Recover Costs against Vale and others on April 20, 2015 in connection with the offer and sale of limited liability partnership membership units in oil and gas companies. In the Final Order, the Securities Division finds that Vale offered and sold unregistered securities, acted as an unregistered broker-dealer or securities salesperson, and violated the anti-fraud provision of the Securities Act of Washington. The Securities Division orders Vale to cease and desist from violating the Securities Act of Washington, and to pay a fine of $10,000 and costs of $500. Vale has a right to request judicial review of this matter.
Michael Forman – S-12-1066-15-FO04 – Final Order
On May 22, 2015, the Securities Division entered a Final Order to Cease and Desist, Impose Fines, and Recover Costs against Michael Forman (“Forman”). The Securities Division previously entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Recover Costs against Forman and others on April 20, 2015 in connection with the offer and sale of limited liability partnership membership units in oil and gas companies. In the Final Order, the Securities Division finds that Forman offered and sold unregistered securities, acted as an unregistered broker-dealer or securities salesperson, and violated the anti-fraud provision of the Securities Act of Washington. The Securities Division orders Forman to cease and desist from violating the Securities Act of Washington, and to pay a fine of $10,000 and costs of $500. Forman has a right to request judicial review of this matter.
Clifford V. Aaron – S-12-1066-15-FO02 – Final Order
On May 22, 2015, the Securities Division entered a Final Order to Cease and Desist, Impose Fines, and Recover Costs against Clifford V. Aaron (“Aaron”). The Securities Division previously entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Recover Costs against Aaron and others on April 20, 2015 in connection with the offer and sale of limited liability partnership membership units in oil and gas companies. In the Final Order, the Securities Division finds that Aaron offered and sold unregistered securities, acted as an unregistered broker-dealer or securities salesperson, and violated the anti-fraud provision of the Securities Act of Washington. The Securities Division orders Aaron to cease and desist from violating the Securities Act of Washington, and to pay a fine of $10,000 and costs of $500. Aaron has a right to request judicial review of this matter.
Runaway Hearts Productions, LLC; Canyon Sands Productions, Inc.; and Scott Sandsberry - S-13-1159-15-FO01 - Final Order
On May 20, 2015, the Director of the State of Washington Department of Financial Institutions entered a Final Decision and Order ("Final Order") against Runaway Hearts Productions, LLC; Canyon Sands Productions, Inc.; and Scott Sandsberry (collectively, "Respondents"). The 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 Respondents on October 14, 2013 in connection with the offer and sale of securities in the form of limited liability company membership interests in Runaway Hearts Productions, LLC. The Final Order denies Respondents’ Petition for Review and affirms the Findings of Fact and Conclusions of Law of the Initial Order (Dated March 23, 2015). The Final Order orders Respondents to each cease and desist from any further violations of RCW 21.20.010, RCW 21.20.040, and RCW 21.20.140. The Final Order also orders Respondents to jointly and severally pay a fine of $5,000 and to jointly and severally pay investigative costs of $3,000. Respondents each have the right to petition the superior court for judicial review of the order.
Judith French Tronsrue – S-15-1684-15-TO01 – Summary Order
On May 15, 2015, the Securities Division entered Summary Order S-15-1684-15-TO01 against Judith French Tronsrue (“Summary Order”). Judith French Tronsrue (IARD # 115909) is a sole proprietor registered investment adviser purportedly located in Seattle, Washington. The Summary Order alleged that Respondent willfully violated WAC 460-24A-060 and WAC 460-24A-205 by failing to file a balance sheet and an annual updated Form ADV parts 1 and 2 for the year ended December 31, 2014. The Summary Order suspends the investment adviser registration; gives notice of an intent to revoke registration, impose a fine of $1,000; and charge costs of $200. The Respondent has a right to request judicial review of the matter.
A Consent Order was entered regarding this matter on June 24, 2015.
Steven Jossi - S-14-1540-14-CO01 - Consent Order
On May 14, 2015, the Securities Division entered into a Consent Order with Steven M. Jossi (“Jossi”). The Division had entered a Statement of Charges and Notice of Intent to Deny Registrations (the “Statement of Charges”) against Jossi. The Statement of Charges alleged that, while he had an application for investment adviser representative registration pending with the Division, Jossi submitted forms to Charles Schwab that contained forged signatures and impersonated a deceased client during a phone call to Schwab in an attempt to change the client’s address. In settling the Statement of Charges, the Consent Order provides that any investment adviser representative registration that Jossi may seek will be denied for a period of three years and that Jossi reimburse the Division $500 in investigative costs. Jossi also waived his right to an administrative hearing in and to judicial review of this matter.
William Marlin – S-12-1066-15-FO01 – Final Order
On May 12, 2015, the Securities Division entered a Final Order to Cease and Desist, Impose Fines, and Recover Costs against William Marlin (“Marlin”). The Securities Division previously entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Recover Costs against Marlin and others on April 20, 2015 in connection with the offer and sale of limited liability partnership membership units and/or restricted stock in oil and gas companies. In the Final Order, the Securities Division finds that Marlin offered and sold unregistered securities, acted as an unregistered broker-dealer or securities salesperson, and violated the anti-fraud provision of the Securities Act of Washington. The Securities Division orders Marlin to cease and desist from violating the Securities Act of Washington, and to pay a fine of $10,000 and costs of $500. Marlin has a right to request judicial review of this matter.
IOANNIS SPYRIDAKIS – S-14-1475-15-SC01 – Statement of Charges
On May 12, 2015, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist, Deny Future Registrations, Order Disgorgement, Impose Fines, and Recover Costs against Ioannis Spyridakis ("Statement of Charges"). The Statement of Charges alleges Mr. Spyridakis (CRD # 5542016) violated RCW 21.20.010 by making misrepresentations during the offer and sale of a security.
A Consent Order was entered regarding this matter on March 7, 2016.
Security First Financial, LLC; Steven Eugene Ling; John Fitzpatrick Boles aka Johnny Boles; Robert Martin Darling - S-12-1065-15-SC02 - Statement of Charges
On May 7, 2015, 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 Security First Financial, LLC ("SFF"), Steven Eugene Ling ("Ling"), John Fitzpatrick Boles aka Johnny Boles ("Boles") and Robert Martin Darling ("Darling").
The Statement of Charges alleges that the Respondents offered and sold an investment contract to a Washington resident that purported to pool the investor’s funds with theirs to invest in a high-yield investment program. Respondents backed the investment with a Security First guarantee, which they executed with a promissory note. The investor invested $22,000 and lost the entire investment. The Statement of Charges alleges that all Respondents violated the anti-fraud section of the Securities Act of Washington, and that Respondents Ling, Boles and Darling violated the securities salesperson registration section of the Act. The Statement of Charges gives notice of the Securities Division’s intent to order Respondents to cease and desist from violating the Act, to impose fines and to charge costs. Respondents have the right to request a hearing on the Statement of Charges.
A Final Order as to Steven Eugene Ling was entered on October 26, 2016.
A Consent Order as to John Fitzpatrick Boles was entered on October 6, 2015.
A Consent Order as to Security First Financial and Robert Martin Darling was entered on September 9, 2015.
Security First Financial, LLC; John Fitzpatrick Boles aka Johnny Boles; Robert Martin Darling - S-12-1065-15-SC01 - Statement of Charges
On May 7, 2015, 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 Security First Financial, LLC (“SFF”), John Fitzpatrick Boles aka Johnny Boles (“Boles”) and Robert Martin Darling (“Darling”).
The Statement of Charges alleges that the Respondents offered and sold promissory notes and limited liability membership interests to at least two Washington residents totaling at least $75,000. The Statement of Charges alleges that Respondents violated the anti-fraud section of the Securities Act of Washington, and that Respondents Boles and Darling violated the securities salesperson registration section of the Act. The Statement of Charges gives notice of the Securities Division’s intent to order Respondents to cease and desist from violating the Act, to impose fines and to charge costs. Respondents have the right to request a hearing on the Statement of Charges.
Reve Enterprises, LLC and Jared Grochowksi - S-14-1607-15-SC01 - Statement of Charges
On May 1, 2015, 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 Reve Enterprises, LLC and Jared Grochowski (“Respondents”). The Statement of Charges alleges that the Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington when they offered and sold at $100,000 of investments in Reve Enterprises, LLC to two Washington investors. 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. Respondent has a right to request a hearing on the Statement of Charges.
Haley L. Lile - S-15-1640-15-FO01 - Final Order
On April 29, 2015 the Securities Division entered a Final Order against Haley L. Lile (“Lile”). The Securities Division had previously entered a Statement of Charges against Lile alleging that she violated the anti-fraud provisions of the Securities Act of Washington when she offered and sold $24,450 in promissory note investments to a Washington resident. The Final Order orders Lile to cease and desist from violating the Securities Act of Washington, to reimburse the Securities Division for its investigative costs, and to pay a fine. Lile has a right to seek judicial review of the Final Order.
Partner Fund, LLC and Travis Lee Moegling - S-15-1619-15-SC01 - Statement of Charges
On April 29, 2015, 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 Partner Fund, LLC and Travis Lee Moegling (collectively, “Respondents”), of Sequim, Washington. The Statement of Charges alleges that the Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington when they offered and sold approximately $200,000 worth of promissory notes investments to investors in Washington and Oregon, and by offering other investments to the general public using social media. 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.
Randall L. Harper, a.k.a. Randy Harper and d.b.a. Jackson Hewitt Tax Service, RL Harper, LLC, and William Levon Harper, a.k.a. Bill Harper - S-14-1531-15-SC01 – Statement of Charges
On April 24, 2015, 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 Randall L. Harper, a.k.a. Randy Harper and d.b.a. Jackson Hewitt Tax Service, RL Harper, LLC, and William Levon Harper, a.k.a. Bill Harper. The Statement of Charges alleges that the Respondents Randy Harper, Bill Harper and RL Harper, LLC offered and/or sold investments in the form of loans/promissory notes and/or a limited liability company interest to Washington, Idaho and California investors. Respondents raised over $1,500,000 from investors. The Statement of Charges alleges that the Respondents violated the anti-fraud section and/or the securities registration sections of the Securities Act of Washington (the Act). The Statement of Charges gives notice of the Securities Division’s intent to order Respondents to cease and desist from violating the Act and to impose fines and to charge costs against Randy Harper and RL Harper, LLC. Respondents each have the right to request a hearing on the Statement of Charges.
A Consent Order as to Randall L. Harper, a.k.a. Randy Harper and d.b.a. Jackson Hewitt Tax Service and RL Harper, LLC was entered on July 1, 2015.
A Consent Order as to Bill Harper was entered on July 1, 2015.
Apex Fun Run, LLC – S-15-1656-15-CO01 – Consent Order
On April 23rd, the Securities Division entered into a Consent Order with Apex Fun Run, LLC (“the Respondent”). In the Consent Order, the Securities Division alleged that the Respondent had violated the registration and disclosure document provisions of Washington’s Franchise Investment Protection Act in connection with the 2014 sale of a franchise to a Washington franchisee. Without admitting or denying the Securities Division’s allegations, the Respondent agreed to cease and desist from violating the registration and disclosure document provisions of the Act and to pay $1,000 in investigative costs. The Respondent agreed to waive its right to a hearing and judicial review of the matter.
Pinnacle Wealth Advisors, Inc.; Raymond A. Birch - S-13-1396-14-CO01 - Consent Order
On April 23, 2015, the Securities Division entered into a Consent Order with Pinnacle Wealth Advisors, Inc. (“Pinnacle”) and its principal Raymond A. Birch (“Birch”). The Consent Order alleges that Birch violated the Washington State Securities Act’s (the “Act”) provision requiring registration of securities in offering and selling promissory notes to advisory clients. Without admitting or denying the Division’s allegations, Birch agreed to cease and desist from violating the Act, to pay $1,000 in investigative costs and that restrictions shall be placed on any investment adviser registration Pinnacle may seek and on any investment adviser representative registration Birch may seek.
Stephen M. Thompson; Leland Energy, Inc.; Mongolia Holdings, Inc. f/k/a Consolidation Services, Inc.; Leland Kentucky Holdings, Inc.; Leland Colorado Holdings, Inc.; Samson Investment Group, LLC; Samson Energy Group, LLC; Leland Tennessee Holdings, Inc.; The Appalachian Drilling Fund II, LLP; The Knox Drilling Fund, LLP; The Knox Drilling Fund II, LLP; Green County Energy Fund, LLP; Rodgers Production Revenue Fund, LLP; Block City Drilling Fund, LLP; Energy Production Revenue Fund, LLP; Production Revenue Drilling Fund, LLP; Asset Management Drilling Fund, LLP; Weld County Drilling Fund, LLP; Wattenberg Drilling Fund, LLP; Wattenberg Drilling Fund II, LLP; Greeley Wattenberg Drilling Fund, LLP; Samson Wattenberg Drilling Fund, LLP; The Presidents Fund, LLP; The Leland Energy Fund, LLP; The Leland Energy Fund II, LLP; Joseph Finateri; Jerel Richardson; Kirtan Khalsa; Clifford V. Aaron; Ronelle Vallejo a/k/a Ron Vale; Rudolpho Gomez a/k/a Rudy Gomez; Michael Forman; William Marlin; and Elvis R. Mendes a/k/a Ron Mendes - S-12-1066-13-SC01 - Statement of Charges
On April 20, 2015, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Impose Fines, and Charge Costs (Statement of Charges) against Stephen M. Thompson (Thompson); Leland Energy, Inc. (Leland Energy); Mongolia Holdings, Inc. f/k/a Consolidation Services, Inc. (CNSV); Leland Kentucky Holdings, Inc.; Leland Colorado Holdings, Inc.; Samson Investment Group, LLC; Samson Energy Group, LLC; Leland Tennessee Holdings, Inc.; The Appalachian Drilling Fund II, LLP; The Knox Drilling Fund, LLP; The Knox Drilling Fund II, LLP; Green County Energy Fund, LLP; Rodgers Production Revenue Fund, LLP; Block City Drilling Fund, LLP; Energy Production Revenue Fund, LLP; Production Revenue Drilling Fund, LLP; Asset Management Drilling Fund, LLP; Weld County Drilling Fund, LLP; Wattenberg Drilling Fund, LLP; Wattenberg Drilling Fund II, LLP; Greeley Wattenberg Drilling Fund, LLP; Samson Wattenberg Drilling Fund, LLP; The Presidents Fund, LLP; The Leland Energy Fund, LLP; The Leland Energy Fund II, LLP; Joseph Finateri (Finateri); Jerel Richardson (Richardson); Kirtan Khalsa (Khalsa); Clifford V. Aaron (Aaron); Ronelle Vallejo a/k/a Ron Vale (Vale); Rudolpho Gomez a/k/a Rudy Gomez (Gomez); Michael Forman (Forman); William Marlin (Marlin); and Elvis R. Mendes a/k/a Ron Mendes (Mendes) (collectively, Respondents). Respondents offered investments in the form of limited liability partnership membership units which would be used to fund oil and gas operations. The Securities Division alleged that Leland Energy and Thompson raised at least $1.2 million by selling oil and gas securities to Washington State investors. The Securities Division alleged that Leland Energy and Thompson facilitated the exchange of partnership assets for restricted stock in CNSV. The Securities Division alleged that Respondents sold unregistered securities in violation of RCW 21.20.140. The Securities Division also alleged that Respondents violated RCW 21.20.010, the anti-fraud provision of the Securities Act of Washington. Further, the Securities Division alleged that Leland Energy, Thompson, Mendes, Finateri, Richardson, Aaron, Vale, Gomez, Forman, Marlin, and Khalsa violated RCW 21.20.040 by offering or selling securities while not registered as a securities salesperson or broker-dealer in the state of Washington. The Statement of Charges gives notice to Respondents of the Securities Division’s intent to enter an order to cease and desist from violating the Securities Act of Washington, to impose fines, and to charge costs. Respondents have a right to request a hearing on the Statement of Charges.
A Consent Order as to Kirtan Khalsa was entered on March 24, 2016.
A Final Order as to Joseph Finateri was entered on February 5, 2016.
A Final Order as to Samson Wattenberg Drilling Fund was entered on October 06, 2015.
A Final Order as to Rudolpho Gomez was entered on September 21, 2015.
A Final Order as to Elvis Mendes was entered on September 21, 2015.
A Final Order was entered regarding this matter on August 28, 2015.
A Consent Order as to Samson Investment Group, LLC was entered on July 14, 2015.
A Consent Order as to Samson Energy Group, LLC was entered on July 14, 2015.
A Final Order as to Clifford V. Aaron was entered on May 22, 2015.
A Final Order as to Michael Forman was entered on May 22, 2015.
A Final Order as to Ronelle Vallejo aka Ron Vale was entered on May 22, 2015.
A Final Order as to Jerel Richardson was entered on May 22, 2015.
A Final Order as to Mongolia Holdings, Inc. f/k/a Consolidation Services, Inc. was entered on May 22, 2015.
A Final Order as to William Marlin was entered on May 12, 2015.
Dennis H Daugs - S-14-1530-15-CO01 - Consent Order
On April 20, 2015, The Securities Division entered into a Consent Order with Dennis H. Daugs, Jr. (“Daugs”). The Securities Division had previously entered a Statement of Charges against Daugs on February 27, 2015. The Securities Division alleged that, while registered as an investment adviser representative, Daugs engaged in conduct that was dishonest or unethical business practices as defined by WAC 460-24A-220. The Division also alleged that Daugs engaged in conduct that violated RCW 21.20.020 and RCW 21.20.010, the investment adviser and securities anti-fraud sections of the Securities Act of Washington. Without admitting or denying the Division’s allegations, Daugs agreed to cease and desist from violating the Securities Act of Washington, to pay an administrative fine of $9,000, and to pay investigative costs of $1,800. Daugs also agreed to a revocation of his investment adviser representative registration, and to a 5 year prohibition from registration as an investment adviser representative or broker-dealer salesperson. Daugs waived his right to a hearing and judicial review of this matter.
Olycentro Inc. and Joe Hyer - S-14-1515-15-CO01 - Consent Order
On April 20, 2015, the Securities Division entered into a Consent Order with Respondents Olycentro Inc. and Joe Hyer. The Division had previously entered Statement of Charges S-14-1515-15-SC01 against Respondents, alleging that Respondents violated the Securities Act of Washington by offering and selling at least $35,000 in common stock to Washington investors. Without admitting or denying the allegations made in the Statement of Charges, Respondents agreed to cease and desist from violating the Securities Act. Respondent Joe Hyer further agreed to pay a fine and investigative costs. Respondents waived their right to a hearing and judicial review of this matter.
Sarah Rose Sorensen; Sigh of Relief, Life and Financial, Inc.; SOR Capital, LLC - S-14-1538-15-SC01 - Statement of Charges
On April 16, 2015, 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 Sarah Rose Sorensen, Sigh of Relief, Life and Financial, Inc. (“Sigh of Relief”) and SOR Capital, LLC (collectively “Respondents”). Sigh of Relief was a financial coaching business, founded by Sorensen that assisted clients with budgeting and real estate investing. On the Sigh of Relief website, Sorensen held herself and her business out as an investment adviser representative and investment adviser, respectively, although neither was registered in that capacity. The Securities Division alleges that Sorensen misappropriated $8,000 from a client’s retirement funds, and had the funds wired to a joint bank account with her estranged husband. The Securities Division further alleges that from July 2011 through May 2012, Sorensen and Sigh of Relief brokered promissory notes between clients so that the borrower could purchase budgeting software from her. Sorensen solicited clients to invest retirement funds through the promissory notes, with the expectation that the clients could earn returns of 8% to 10% per year. The Securities Division further alleges that between approximately July 2011 and April 2014, Sorensen and SOR Capital raised at least $190,500 from two investors through promissory notes. Sorensen purportedly used some of the funds for Sigh of Relief business expenses and to purchase real estate properties held by SOR Capital. The Securities Division alleges that the Respondents offered unregistered securities, acted as unregistered broker-dealers, securities salespersons, investment advisers, and/or investment adviser representatives, and violated the anti-fraud provision of the Securities Act of Washington. The Securities Division intends to order that the Respondents cease and desist from violating the Securities Act of Washington, and gave notice of its intent to collect fines and charge costs. The Respondents have a right to request a hearing on the Statement of Charges.
A Final Order was entered regarding this matter on May 22, 2015.
Michael Andre Jones - S-14-1478-15-SC02 - Amended Statement of Charges
On April 6, 2015, the Securities Division entered an Amended Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist, Impose a Fine, and Charge Costs (“Amended Statement of Charges”) against Michael Andre Jones, Respondent. The Amended Statement of Charges alleges that Respondent violated RCW 21.20.010, the anti-fraud provision of the Securities Act of Washington, by misrepresenting or failing to disclose material information when offering and selling convertible promissory note investments totaling $115,000 to two Washington investors. The Securities Division intends to order 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. Respondent has the right to request a hearing on the Amended Statement of Charges.
A Consent Order was entered regarding this matter on November 13, 2015.
Haley L. Lile - S-15-1640-15-SC01 - Statement of Charges
On April 6, 2015, 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 Haley L. Lile (“Respondent”). The Statement of Charges alleges that the Respondent offered and sold approximately $24,450 in promissory notes from at least one Washington investor. 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. Respondent has a right to request a hearing on the Statement of Charges.
A Final Order was entered regarding this matter on April 29, 2015.
Robert Malecki; Global Village Properties LLC; REI Capital LLC - S-13-1255-14-CO01 - Consent Order
On April 6, 2015, the Securities Division entered into a Consent Order with Robert Malecki, Global Village Properties LLC, and REI Capital LLC ("Respondents"). The Securities Division alleged that the Respondents violated the securities registration and broker-dealer/salesperson registration provisions of the Securities Act of Washington in connection with the offer and sale of real estate related investments. In settling the matter, Respondents neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act of Washington. Respondents waived their right to a hearing and to Judicial Review. Robert Malecki agreed to pay a fine of $100 and investigative costs of $400.
Ronald Newman, Jeffrey Scott Hollingsworth, Milestone Life Settlement Fund, LLC, Milestone Investments USA, LLC, and Milestone Multifamily Fund, LLC – S-12-1060-14-CO01 – Consent Order
On March 26, 2015, the Securities Division entered into a Consent Order with Respondent Jeffrey Scott Hollingsworth.
The Securities Division had previously entered a Statement of Charges against Jeffrey Scott Hollingsworth alleging that he violated the registration and anti-fraud provisions of the Securities Act of Washington through his efforts to raise capital for a fund that invested in life insurance policies and a fund that sought to develop and sell rental properties.
Without admitting or denying the Securities Division’s allegations, Jeffrey Scott Hollingsworth agreed to cease and desist from violating the Securities Act of Washington, pay $800 in investigative costs, and pay $500 in fines. Jeffrey Scott Hollingsworth further agreed to not apply to register as a broker-dealer, securities salesperson, investment adviser, or investment adviser representative in Washington. Jeffrey Scott Hollingsworth waived his right to a hearing and judicial review of this matter.
Green Spirit Enterprises LLC - S-15-1654-15-CO01 - Consent Order
On March 25, 2015, the Securities Division entered into a Consent Order with Green Spirit Enterprises LLC. (“the Respondent”). In the Consent Order, the Securities Division alleged that the Respondent had violated the registration and disclosure document provisions of Washington’s Franchise Investment Protection Act in connection with the 2014 sale of a franchise to a Washington franchisee. Without admitting or denying the Securities Division’s allegations, the Respondent agreed to cease and desist from violating the registration and disclosure document provisions of the Act and to pay $750 in investigative costs. The Respondent agreed to waive its right to a hearing and judicial review of the matter.
Drop Zone Digital Media LLC and Lorenzo Reid - S-13-1175-15-FO01 - Final Order
On March 25, 2015, the Securities Division entered a Final Order against Drop Zone Digital Media LLC and Lorenzo Reid. The Securities Division had previously entered a Statement of Charges against Drop Zone Digital Media LLC and Lorenzo Reid, alleging that the Respondents violated the Business Opportunity Fraud Act through their offer and sale of a Drop Zone Digital Media business opportunity to a number of purchasers. The Final Order orders Drop Zone Digital Media LLC and Lorenzo Reid to cease and desist from violating the registration, disclosure document, and anti-fraud provisions of Business Opportunity Fraud Act. Drop Zone Digital Media LLC and Lorenzo Reid each have the right to request judicial review of the Final Order.
Walter Timothy Seibly - S-14-1536-14-CO01 - Consent Order
On March 13, 2015, the Securities Division entered into a Consent Order with Walter Timothy Seibly (“Respondent”). The Securities Division alleged that Respondent violated RCW 21.20.010 by failing to disclose material information relating to the offer and sale of an LLC membership investment.
Without admitting or denying the Securities Division’s allegations, Respondent agreed to cease and desist from violating the Securities Act of Washington and agreed to pay a $3,500 fine and $1,500 in investigative costs. Respondent waived his right to a hearing and to judicial review of this matter.
Cecil Franklin "Buz" Smith, Truth North Tours and Upstream Solutions – S-12-1080-14-SC01 - Statement of Charges
On March 5, 2015, 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 Cecil Franklin Smith, Jr., a.k.a. Buz Smith and a.k.a. Frank Smith (Smith) (and also doing business as Northwest All-Inclusive Tours and All-Inclusive Tours, Inc.), Upstream Solutions, LLC (Upstream) and True North Tours, Inc., d.b.a. Discover the Northwest Tours, Inc. (True North).
The Statement of Charges alleges that the Respondents Smith, Upstream and True North offered and/or sold investments in the form of loans/promissory notes and an investment contract to at least three investors and borrowed about $74,500. The Statement of Charges alleges that the Respondents violated the anti-fraud section and securities registration section of the Securities Act of Washington (the Act), and that Respondent Smith violated the securities broker/salesperson registration section of the Act. The Statement of Charges gives notice of the Securities Division’s intent to order Respondents to cease and desist from violating the Act, to impose fines and to charge costs. Respondents have the right to request a hearing on the Statement of Charges.
A Final Order was entered regarding this matter on July 1, 2015.
Dennis Daugs - S-14-1530-14-SC01 –Statement of Charges
On February 27, 2015, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, to Deny Future Registration Applications, to Impose a Fine, and to Charge Costs (“Statement of Charges”) against Respondent Dennis H. Daugs, Jr. (“Daugs”). The Statement of Charges alleges that, while registered as an investment adviser representative, Daugs borrowed $3.1 million from an elderly client, omitted material information in the purchase and sale of securities, and used $5 million from a private fund in transactions that Daugs benefited from or had an interest in. Daugs failed to disclose his role and/or interest in these transactions, and he failed to disclose the material conflicts of interest present in these transactions. The Statement of Charges alleges that this conduct violated RCW 21.20.020 and RCW 21.20.010, and that it was dishonest or unethical business practices as defined by WAC 460-24A-220. The Statement of Charges also alleges that Daugs is the subject of an administrative order by the Securities and Exchange Commission, which found that Daugs violated federal securities laws and barred Daugs from association with any broker, dealer, or investment adviser for five years. The Securities Division intends to order Daugs to cease and desist from violations of the Securities Act of Washington, to deny future securities registration applications, to impose a fine, and to charge costs. Respondent has the right to request a hearing on the Statement of Charges.
A Consent Order regarding this matter was entered on April 20, 2015.
911 Restoration Franchise, Inc. - S-14-1576-15-CO01 - Consent Order
On February 25, 2015, the Securities Division entered into a Consent Order with 911 Restoration Franchise, Inc. (“the Respondent”). In the Consent Order, the Securities Division alleged that the Respondent had violated the registration, anti-fraud, and disclosure document provisions of Washington’s Franchise Investment Protection Act in connection with the 2009 sale of a franchise to a Washington franchisee and a subsequent 2014 rescission offer to that franchisee. Without admitting or denying the Securities Division’s allegations, the Respondent agreed to cease and desist from violating the registration, anti-fraud, and disclosure document provisions of the Act and to pay $1,000 in investigative costs. The Respondent agreed to waive its right to a hearing and judicial review of the matter.
Hydro Alternative Energy, Inc.; Scott Ovian; Jonathan Burke; Mark Antonucci - S-11-0785-12-CO01 - Consent Order
On February 20, 2015, the Securities Division entered into a Consent Order with Hydro Alternative Energy, Inc.; Scott Ovian; Jonathan Burke; and Mark Antonucci (“Respondents”). The Securities Division had previously issued a Statement of Charges, S-11-0785-12-SC01, against the Respondents on June 29, 2012. The Statement of Charges alleged that Hydro Alternative Energy, Inc. and its agents made unsolicited telephone calls to offer unregistered investments in HAE stock to residents of multiple states and received over $8,500,000 of investor funds, over $111,000 of which came from Washington investors. The Statement of Charges also alleged that Respondents Ovian and Burke acted as unregistered broker-dealers or securities salespersons. The Statement of Charges further alleged that the offer and sale of securities by Respondents violated the anti-fraud provision of the Securities Act of Washington. In settling the matter, Respondents neither admitted nor denied the allegations, but agreed to cease and desist from violating the Securities Act of Washington. Respondents also agreed to pay a fine of $2,500 and investigative costs of $72,500. Respondents waived their right to a hearing and to judicial review of this matter.
Allstar Fitness, LLC; Bobby G. Padgett, II (“Padgett); BGP III, LLC; BGP II, LLC; West Seattle Fitness, LLC; and Harrison Square Fitness, Inc. - S-12-1119-15-CO01 - Consent Order
On February 18, 2015, The Securities Division entered into a Consent Order with Allstar Fitness, LLC; Bobby G. Padgett, II (“Padgett); BGP III, LLC; BGP II, LLC; West Seattle Fitness, LLC; and Harrison Square Fitness, Inc. (collectively, “Respondents”). The Securities Division had previously entered a Statement of Charges against Respondents on December 19, 2014. The Statement of Charges alleged that Respondents violated RCW 21.20.140, and Padgett violated RCW 21.20.040, when they offered and sold at least $1.14 million of unregistered and unsecured promissory notes to 70 Washington investors. Further, the Statement of Charges alleged that Respondents violated RCW 21.20.010, the ant-fraud section of the Securities Act of Washington. Without admitting or denying the Securities Division’s allegations, Respondents agreed to cease and desist from violating the Securities Act of Washington. Respondents waived their right to a hearing and judicial review of the matter.
Kaia F.I.T. - S-14-1600-14-CO01 - Consent Order
On February 6, 2015, the Securities Division entered into a Consent Order with Kaia F.I.T. The Securities Division alleged that Kaia F.I.T. violated the registration and disclosure document provisions of the Franchise Investment Protection Act of Washington. Without admitting or denying the Securities Division’s allegations, Kaia F.I.T. agreed to cease and desist from violating the Franchise Investment Protection Act of Washington. Kaia F.I.T. further agreed to pay $1,200 in investigative costs and waived its right to a hearing and judicial review of the matter.
Wolfe Capital Group, LLC; James Bernard Wolfe; Saves, Inc.; and Michael Ray Snodgrass – S-13-1225-14-SC01 - Statement of Charges
On February 4, 2015, 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 Wolfe Capital Group, LLC ("WCG"), James Bernard Wolfe ("Wolfe"), Saves, Inc. and Michael Ray Snodgrass ("Snodgrass").
The Statement of Charges alleges that the Respondents WCG, Wolfe and Snodgrass offered and sold investments in a real estate scheme to investors in multiple states, including four in Washington State, totaling at least $1,020,000. Further, the Statement of Charges alleges that Respondents Snodgrass and Saves, Inc. offered and sold $100,000 in promissory notes to one of the Washington WCG investors. The Statement of Charges alleges that all Respondents violated the anti-fraud section of the Securities Act of Washington, that Respondents Wolfe and Snodgrass violated the securities salesperson registration section of the Act, and that WCG violated the securities registration section of the Act. The Statement of Charges gives notice of the Securities Division’s intent to order Respondents to cease and desist from violating the Act, to impose fines and to charge costs. Respondents have the right to request a hearing on the Statement of Charges.
A Final Order as to Wolfe Capital was entered on August 20, 2015.
A Consent Order was entered regarding this matter on July 28, 2015.
Douglas Donnelly - S-13-1212-14-CO01 - Consent Order
On January 27, 2015, the Securities Division entered a Consent Order S-13-1212-14-CO01 with Douglas Donnelly (“Consent Order”). Mr. Donnelly (CRD # 1397094) is a registered investment adviser representative and securities salesperson. The Consent Order alleged that between 2010 and 2012 Mr. Donnelly violated WAC 460-22B-090(2),(19); RCW 21.20.020(1)(B); WAC 460-24A-220(20); and WAC 460-24A-205. The Consent Order includes a $100,000.00 fine. Mr. Donnelly waived his right to request judicial review of the matter.
Sound Housing LLC - S-14-1585-14-CO01 - Consent Order
On January 21, 2015, the Securities Division entered into a Consent Order with Sound Housing, LLC; Dmitri D. Suslikov; and Tatiana Gershanovich (“Respondents”). The Securities Division alleged that Respondents violated RCW 21.20.140, the registration section of the Securities Act of Washington. Without admitting or denying the Securities Division’s allegations, Respondents agreed to cease and desist from any violation of the registration provisions of the Securities Act and to pay investigative costs of $1,800. Respondents agreed to waive their right to a hearing and to judicial review of the matter.
Gary William Oldham - S-10-010-14-CO02 - Consent Order
On January 20, 2015, the Securities Division entered into a Consent Order with Respondent Gary William Oldham (Oldham). The Division previously entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Recover Costs against Oldham and others on October 15, 2014 in connection with the offer and sale of preferred stock and promissory notes of a Tacoma, Washington based mortgage broker. In 2007, Oldham and others were alleged to have offered and sold securities in violation of the registration and anti-fraud provision of the Securities Act of Washington. Without admitting or denying the Securities Division’s allegations, Respondent Oldham agreed to cease and desist from violating the registration and anti-fraud provisions of the Act and pay a fine of $3,500.00. Respondent Oldham agreed to waive his right to a hearing and judicial review of the matter.
Kenneth Exelby, Jr. - S-10-010-14-CO01 - Consent Order
On January 14, 2015, the Securities Division entered into a Consent Order with Respondent Kenneth Exelby, Jr. (Exelby). The Division previously entered a Statement of Charges and Notice of Intent to Issue an Order to Cease and Desist, Impose Fines, and Recover Costs against Exelby and others on October 15, 2014 in connection with the offer and sale of preferred stock and promissory notes of a Tacoma, Washington based mortgage broker. In 2007, Exelby and others were alleged to have offered and sold securities in violation of the anti-fraud provision of the Securities Act of Washington. Without admitting or denying the Securities Division’s allegations, Respondent Exelby agreed to cease and desist from violating the anti-fraud provisions of the Act. Respondent Exelby agreed to waive his right to a hearing and judicial review of the matter.
Cascadia Capital Management; Joel Williams - S-14-1467-15-FO01 - Final Order
On January 12, 2015, the Securities Division entered a Final Order S-14-1467-15-FO01 against Cascadia Capital Management and Joel Williams (“Final Order”). Cascadia Capital Management (IARD # 0164579) is a registered investment adviser located in Seattle, Washington and Mr. Williams (CRD # 4553076) is its sole registered investment adviser representative. The Final Order alleged that Respondents willfully violated WAC 460-24A-060 and WAC 460-24A-205 by failing to file a balance sheet and an annual updated Form ADV parts 1 and 2 for the year ended December 31, 2013. The Final Order revokes the investment adviser registration of Cascadia Capital Management and the investment adviser representative registration of Joel Williams; assesses a fine of $1,000; and costs of $200. The Respondents have a right to request judicial review of the matter.
Secured Investment Corp.; Lee Arnold – S-13-1250-14-CO01 – Consent Order
On January 7, 2015, the Securities Division entered into a Consent Order with Respondents Secured Investment Corp. and Lee Arnold.
The Securities Division had previously entered a Statement of Charges against these Respondents alleging that they violated the Business Opportunity Fraud Act through their offer and sale of a business opportunity that purported to pay purchasers for referrals of prospective borrowers or lenders to Secured Investment Corp.’s private money lending business.
Without admitting or denying the Securities Division’s allegations, these Respondents agreed to cease and desist from violating the Business Opportunity Fraud Act and to pay $1,500 in investigative costs. These Respondents waived their right to a hearing and judicial review of this matter.