Source: http://www.securities.arkansas.gov/!userfiles/Orders/1999/99_045_S.htm
Timestamp: 2017-12-13 05:24:08
Document Index: 383848320

Matched Legal Cases: ['§ 23', '§ 23', '§ 23', '§ 23', '§ 23', '§ 23']

Order No. 99-045-S
TRUSTEES, PRINCIPALS,
OFFICERS, AGENTS, AND
AFFILIATES, including, but not limited to,
CLIFTON WILKINSON NO. 99-045-S
The Arkansas Securities Department "Department") has received information and has in its possession certain evidence which indicates that Alliance Trust ("Alliance"), and Clifton Wilkinson ("Wilkinson") have violated and/or will violate provisions of the Arkansas Securities Act ("Act"), Ark. Code Ann. § 23-42-101 et seq.
According to the Announcement, Alliance uses language that an average investor could reasonably interpret to conclude that Alliance provides a "surety payment bond" on the Investment principal from U.S. Guarantee Corporation. According to documents from the Arizona Corporation Commission, U.S. Guarantee Corporation was administratively dissolved as a corporation on February 10, 1997. A representative of U.S. Guarantee has written that U.S. Guarantee does not have a formal bond relationship with Alliance. A copy of the letter is attached hereto.
The Investments are securities as that term is defined by the Act, Ark. Code Ann. § 23-42-102(15)(A). According to the records of the Arkansas Securities Commissioner, these securities are not registered with the Commissioner, nor has an exemption from registration been filed and approved by the Commissioner. Further, the securities are not "covered securities" as defined by the Act. Ark. Code Ann. § 23-42-102(4).
Alliance is an "issuer" as that term is defined by the Act, to-wit: "every person who issues or proposes to issue any security . . ." Ark. Code Ann. § 23-42-102(9). According to the records of the Arkansas Securities Commissioner, Alliance is not registered with the Commissioner as an issuer.
According to documents and information received by the Department, there is no disclosure to Agents or investors that Alliance or Wilkinson are registered, or exempted from registration, with Arkansas as an issue, a broker-dealer, or an agent of the issuer, as appropriate.
According to documents and information received by the Department, Alliance or Wilkinson does not disclose that mandatory membership in Alliance by the Agent and investor creates a pooling of interests of the Agent and investor.
For reasons set forth herein, and based upon Findings of Fact and Conclusions of Law recited above, it is the opinion of the Commissioner that:
The Investments are securities subject to the registration requirements of the Act.
The Investments have not been registered with the Department, neither are they exempt from that registration nor are they covered securities.
Alliance and Wilkinson have engaged in fraud, in violation of Ark. Code Ann. § 23-42-507, in that they engaged in a course of business which deceived or could deceive Arkansas Agents, and, subsequently, Arkansas residents, into believing the offer and sale of the Investments in Arkansas was lawful.
Alliance and Wilkinson have engaged in fraud, in violation of Ark. Code Ann. § 23-42-507, in that they mislead the Agents and investors to believe that the investments were backed by a bond, when in fact, no such bond existed.
Alliance, Wilkinson, and agents thereof should immediately cease and desist from the collection of funds from any Arkansas resident.
IT IS THEREFORE ORDERED THAT ALLIANCE TRUST, and Clifton Wilkinson, the Trustees, Officers, Agents, and Affiliates of the foregoing, including, but not limited to, Clifton Wilkinson, CEASE AND DESIST from any future action in the State of Arkansas in connection with the offer and sale of securities until such persons and offerings are properly registered or exempt from registration with Arkansas.
WITNESS MY HAND AND SEAL this 17 the day of August 1999