Department of Financial Institutions
PO Box 9033, Olympia, Washington 98507-9033
Kevin L. Lawrence, founder of Health Maintenance Centers, Inc.
and Znetix, Inc., indicted and arrested on federal criminal charges
(8/1/02) The U.S. Attorney's Office for the Western District of Washington, the Federal Bureau of Investigation, and the state Department of Financial Institutions today announced the indictment and arrest of Kevin L. Lawrence of Bainbridge Island, Washington by federal agents in connection with a $91,000,000 stock investment scam. Other agencies participating in the announcement and that contributed to the investigation are the Internal Revenue Service and the Securities and Exchange Commission.
Lawrence was charged with 64 counts of securities fraud, wire fraud, mail fraud, money laundering, and conspiracy to commit these offenses. Over 5,000 investors nationwide were victimized, including 2,400 Washington residents. The Securities Division issued an administrative Cease and Desist Order against Lawrence in of April 2001 for offering Health Maintenance Centers, Inc. stock in violation of state securities laws.
The Dept. of Financial Institutions would like to thank the agencies mentioned above for their assistance in the investigation. In addition, the Dept. of Financial Institutions wishes to thank the following parties for their cooperation and assistance in the Lawrence investigation: Washington State Department of Licensing, Department of Revenue, Secretary of State, Bainbridge Island Police Department, and the state securities departments and/or corporation departments from Alabama, Arizona, Illinois, Nevada, Ohio, Oklahoma, Oregon, and Wisconsin.
For more information on the arrest, read the news release issued by the
U.S. Department of Justice
Western District of Washington.