Home > Division of Securities > Administrative Orders

2002 and Earlier Administrative Orders

2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 and Earlier

Bailine Scandinavia A/S; Lars Christensen; Lisa Cox; their agents and employees, Respondents -- S-02-381-02-CO01 -- Consent Order

On December 16, 2002 the Securities Division entered into Consent Order S-02-381-02-CO01 with Bailine Scandinavia A/S, Lars Christensen and Lisa Cox for alleged violations of the Franchise Act’s registration and disclosure provisions. Bailine is in the business of promoting the concept of improving women’s health, beauty and self-image through figure-shaping and weight reduction. Bailine agreed not to violate the Franchise Act further and will make a rescission offer to all franchisees in the State of Washington.

Cooley Enterprises; Brian Cooley; Kathy Cooley; their agents and employees, Respondents -- S–02-357-02-TO01 – Summary Order to Cease and Desist

On December 16, 2002 the Securities Division entered Summary Order to Cease and Desist S-02-357-02-TO01 against Cooley Enterprises, Brian and Kathy Cooley for alleged violations of the Business Opportunity Fraud Act’s registration, disclosure and antifraud provisions. Cooley Enterprises offers an in-home envelope stuffing opportunity. Purchasers pay a $25 “deposit” for training materials. The materials instruct the purchaser to place newspaper advertisements in various newspapers, set up a toll-free telephone number and then send the callers the same materials that the purchaser received. The caller sends the purchaser half of the “deposit” and retains the other half. Purchasers earn money by further encouraging others to become purchasers, thereby setting up a pyramid scheme.

Electronic Billing Systems, Inc.; Ronald Tupps; Robert Ash; their agents and employees, Respondents – S-02-329-02-FO01 – Final Order to Cease and Desist

On October 28, 2002 the Securities Division entered Summary Order to Cease and Desist SDO-87-02 against Electronic Billing Systems, Ronald Tupps and Robert Ash for alleged violations of the Business Opportunity Fraud Act registration, disclosure and antifraud provisions. Electronic Billing Systems offers an opportunity to purchase a package that will allow a purchaser to begin an in-home medical and dental billing business. The package includes a certification program, training manuals and videos and lists of doctors and dentists who are in need of these services. Electronic Billing Systems further offers a 21-day refund policy. On December 2, 2002, the Securities Division entered Final Order S-02-329-02-FO01. Robert Ash submitted a written statement waiving his right to a hearing. Electronic Billing Systems and Ronald Tupps failed to respond to the Summary Order within 20 days.

Espresso Italia Marketing, Inc.; Shadd Vickery; Robert Ashcroft; Whitney Banks; their agents and employees, Respondents - S-02-328-02-FO01 – Final Order to Cease and Desist

On October 28, 2002, the Securities Division entered a Summary Order to Cease and Desist and Revoking Registration, SDO-86-02, against Espresso Italia Marketing, Inc. and its President, Shadd Vickery, for alleged violations of the Business Opportunity Fraud Act registration, disclosure and antifraud provisions. Espresso Italia offers an opportunity to purchase espresso equipment and locating services. Espresso Italia was registered as a Business Opportunity with the State of Washington. This registration has been suspended.

James B. Goodrow, Respondent – S-02-300-02-CO01 – Consent Order and Order Vacating SDO-100-02

On December 5, 2002, the Securities Division entered a Consent Order against James B. Goodrow. The Division had entered a Statement of Charges against Goodrow, an Anacortes resident employed by American Express Financial Advisors, Inc. and IDS Life Insurance Company, alleging he made unauthorized transactions in the account of an elderly investor. The unauthorized transactions resulted in the surrender of the investor’s fixed annuities, which led to substantial surrender charges. Mr. Goodrow’s securities salesperson and investment advisor representative licenses were suspended for a period of five days. Mr. Goodrow also reimbursed the Securities Division $1,000 for its investigative costs, and paid a $1,500 fine.

Brock Contracting and David Creagh Brock, Jr. - SDO-105-02 -- Consent Order and Order Vacating SDO-093-02 as to Brock Contracting and David Creagh Brock, Jr.

Brock Contracting was a timber and logging company located in Colville, Washington. The Securities Division alleged that Brock Contracting and David Creagh Brock, Jr. violated the registration and anti-fraud provisions of the Washington Securities Act when offering and selling approximately $750,000 worth of investments to nine investors. On December 21, 2002, the Securities Division entered into a Consent Order with Brock Contracting and Brock, who neither admitted nor denied any violations of the Washington Securities Act. However, Brock Contracting and Brock each agreed to cease and desist from any further violations of the Securities Act. In addition, Brock paid $2,500 to the Securities Division for reimbursement of investigative costs.

Grout Doctor Franchising Co. of America, Inc., Barry F. Baruh, their employees and agents, Respondents – SDO-104-02 – Consent Order

On December 16, 2002, the Securities Division entered a Consent Order with Grout Doctor Franchising Co. of America, Inc., and its President, Barry F. Baruh in settlement of alleged violations of the registration and disclosure document provisions of the Franchise Investment Protection Act. Grout Doctor Franchising Co. of America, Inc. is in the business of granting franchises for the performance of grout cleaning and restoration services. The company and its president agreed to comply with the registration and disclosure document requirements in the future. The company is to disclose the existence and contents of the order in any franchise disclosure document and to agents and employees, to refund $2,500 to the Washington purchaser, and reimburse the Division $500 for its costs of investigation.

Richard Thomas Zieske; Grace E-Dat, Inc.; Grace E-Dat02, LP and Grace Capital Investments LLC, Respondents – SDO-103-02 – Amended Summary Order to Cease and Desist and Notice of Intent to Impose a Fine

On December 2, 2002, the Securities Division entered an Amended Order to Cease and Desist and Notice of Intent to Impose Fine against Richard Zieske, who currently resides in Vancouver, Washington. Zieske allegedly offered and sold more than $1.7 million worth of stock, limited partnership interests and limited liability company interests to approximately 100 investors, most of whom are Washington residents. Zieske was supposed to use the proceeds from investors for day trading exchange-listed securities. From January 2001 through April 2002, Zieske appears to have generated a net trading loss of more than $400,000. Allegedly, Zieske’s trading results were not disclosed to investors. Zieske also allegedly failed to register the securities and to disclose other material information about the investments. The Securities Division is seeking a fine of $20,000 from Zieske.

Alpha Telcom, Inc.; American Telecommunications Com;pany, Inc.; Kelley W. Abbott; Wilfred Alvarez; Thomas Durso; Daniel Curtin; Roy Grady; Hans Lorentzen; Fay L. Moyer; Glen Ottmar; Dirk Peterson; Frederick Weatherbee; their agents and employees, Respondents - SDO-102-02 - Consent Order and Order Vacating SDO-76-02 as to Thomas Durso

On November 8, 2002, the Securities Division entered into a Consent Order with Thomas Durso of Bellevue, Washington. The Securities Division had entered a Statement of Charges against Respondents Alpha Telcom, Inc. (“Alpha”), American Telecommunications, Inc. (“ATC”), Kelley W. Abbott, Wilfrid Alvarez, Jack Chandler, Daniel Curtin, Thomas Durso, Roy Grady, Hans Lorentzen, Fay L. Moyer, Glen Ottmar, Dirk Petersen, and Frederick Weatherbee in January of 2002, and a Final Order to Cease and Desist against Durso in August of 2002. The Securities Division alleged that Respondents sold $3,922,000 in unregistered securities to at least 100 Washington residents. The securities sold to Washington residents were in the form of public telephones and telephone service agreements offered by Oregon based companies Alpha and ATC, through several agents. In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Durso is barred from applying for a securities salesperson or investment adviser representative license for a period of five years. Mr. Durso reimbursed the Securities Division $2000 for its investigative costs, and is immediately subject to a $55,000 fine in the event the Consent Order is violated.

James B. Goodrow, Respondent – SDO-100-02 – Statement of charges and Notice of Intent to enter an order suspending securities salesperson and investment adviser representative registration. Also see S-02-300-02-CO01 vacating this order

On November 4, 2002, the Securities Division entered a Statement of Charges against James B. Goodrow. The Division alleged that Goodrow, an Anacortes resident employed by American Express Financial Advisors, Inc. and IDS Life Insurance Company, made unauthorized transactions in the account of an elderly investor. The unauthorized transactions resulted in the surrender of the investor’s fixed annuities, which led to substantial surrender charges. The Division gave notice of its intention to suspend Goodrow’s securities salesperson and investment advisor representative registration for a period of thirty days.

National Communications Marketing, Inc.; Stephen Wolfe; ETS Payphones, Inc.; Charles E. Edwards; Glen L. Ottmar; Earl C. Dennis; their employees and agents, Respondents – SDO-099-02 – Amended Final Order to Cease and Desist as to National Communications Marketing, Inc..; Stephen Wolfe; ETS Payphones, Inc.; and Charles E. Edwards

On October 31, 2002, the Securities Division entered Final Order to Cease and Desist SDO-098-02 in the above matter relating to National Communications Marketing, Inc., Stephen Wolfe, ETS Payphones, Inc., and Charles E. Edwards. This order was entered to finalize the Securities Division’s Summary Order to Cease and Desist dated February 26, 2001. This action followed the entry of default order entered on June 14, 2002, by Administrative Law Judge Roosevelt Currie, Jr. for failure of the parties to appear at a pre-hearing conference. The named respondents were charged in the Summary Order with violating the state securities registration and fraud laws in connection with the sale of pay telephone investments to Washington residents

National Communications Marketing, Inc.; Stephen Wolfe; ETS Payphones, Inc.; Charles E. Edwards; Glen L. Ottmar; Earl C. Dennis; their employees and agents, Respondents - SDO-098-02 - Final Order to Cease and Desist as to National Communications Marketing, Inc.; Stephen Wolfe; ETS Payphones, Inc., and Charles E. Edwards (Also see the Amended Final Order to Cease and Desist - SDO-099-02 - regarding this matter)

On October 31, 2002, the Securities Division entered a Final Order to Cease and Desist relating to the named respondents. This order was entered to finalize the Securities Division’s Summary Order to Cease and Desist (SDO-012-01) dated February 26, 2001. This action followed the entry of default order entered on June 14, 2002, by Administrative Law Judge Roosevelt Currie, Jr. for failure of the parties to appear at a pre-hearing conference. The named respondents were charged in the Summary Order with violating the state securities registration and fraud laws in connection with the sale of pay telephone investments to Washington residents.

Tri-Vision Resources International and Guy Matthew Beatty, Respondents - SDO-097-02 - Summary Order to Cease and Desist and Notice of Intent to Impose a Fine

On November 1, 2002, the Securities Division entered a summary cease and desist order against Guy Matthew Beatty and Tri-Vision Resources International. The order alleges that Beatty, an Oregon resident, offered and sold more than $130,000 of investments to at least four investors, including a Washington resident. The investment proceeds were supposed to be used to finance overseas shipments of cement that would supposedly generate a 15% to 30% return on investment. Beatty and Tri-Vision allegedly misrepresented the safety of the investments and failed to disclose material information about the investments. The order seeks to impose a $5,000 fine on Beatty.

Consumer Benefits Association; National Care Corp; Our Team Inc; Pickle Corp; Laurence Harrison; Charlene Harrison ; their employees and agents, Respondents -- SDO-095 -02 -- Summary Order to Cease and Desist

Michael M. Miles; MM Miles; their employees and agents, Respondents - SDO-094-02 - Summary Order to Cease and desist and Notice of Intent to Order Affirmative Relief

The Securities Division sent a criminal referral to the King County Prosecuting Attorney regarding Miles M. Miles, a Seattle resident and former Primerica Financial Services insurance sales person. The Securities Division investigation indicates that Miles raised at least $380,000 from at least six investors (five in Washington) promising to invest in stock and commodity options. Miles allegedly told the investors that he was a very successful stockbroker and could double or even triple their investment in 3 to 18 months. The Securities Division investigation shows that Miles did not invest the investor’s funds, rather he used the funds for other purposes.

Brock Contracting; David Creagh Brock, Jr.; and Kenneth John Sjordal, Respondents - SDO-093-02 - Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist and Impose Fines

Millennium USA Eastern Washington RLLP; Combined Agency, Inc.; James E. Ady; Respondents – SDO–092-02 – Summary Order to Cease and Desist

On November 26, 2002, the Securities Division entered a summary order to cease and desist against Millennium USA Eastern Washington RLLP; Combined Agency, Inc.; and James Ady. The Securities Division alleged that James Ady of Spokane, acting on behalf of his insurance agency, Combined Agency, Inc., sold unregistered securities in a series of three limited liability partnerships. Those limited liability partnerships, of which Millennium USA Eastern Washington RLLP was one, were formed to purchase defaulted credit card debt and then to assign that debt to a collections company for collection. The Securities Division also alleged that Combined Agency, Inc. acted as an unregistered broker-dealer and that James Ady acted as an unregistered broker-dealer or an unregistered salesperson. The Securities Division alleged that the sales of the interests in the limited liability partnerships were made in a misleading manner as investors were not advised of the risks associated with investing.

Nationwide Marketing, Wayne Alexander, their agents and employees, Respondents - SDO-091–02 – Final Order to Cease and Desist

On October 5, 2002, the Securities Division entered Final Order to Cease and Desist SDO-091-02 against Nationwide Marketing and its principal, Wayne Alexander, for alleged violations of the Business Opportunity Fraud Act registration, disclosure document and antifraud provisions. A Summary Order was entered in the matter on August 29, 2002, which allowed for a hearing to be requested but no such request was submitted. Nationwide Marketing, located in North Fort Myers, Florida, is the seller of an opportunity involving payment for in-home mail processing.

Respondents in the matter were alleged in the Securities Division’s Summary Order to Cease and Desist SDO-12-01 dated February 26, 2001, to have violated the state securities registration and antifraud laws in connection with the sale of payphone investments to Washington residents. On September 20, 2002, the Securities Division entered into another Consent Order (SDO-088-02) with Don A. Bennett, an agent in the offer and sale of the payphone investments. Don A. Bennett agreed to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act and is barred from applying for a securities salesperson or investment adviser representative license for a period of three years. Mr. Bennett also reimbursed the Securities Division $1,500 for its investigative costs, and is subject to a $75,000 fine in the event the Consent Order is violated.

Electronic Billing Systems, Inc.; Ronald Tupps; Robert Ash; their agents and employees - SDO-087-02 - Summary Order to Cease and Desist

On October 28, 2002 the Securities Division entered a Summary Order to Cease and Desist against Electronic Billing Systems and Ronald Tupps for alleged violations of the Business Opportunity Fraud Act registration, disclosure and antifraud provisions. Electronic Billing Systems offers an opportunity to purchase a package that will allow a purchaser to begin an in-home medical and dental billing business. The package includes a certification program, training manuals and videos and lists of doctors and dentists who are in need of these services. Electronic Billing Systems further offers a 21-day refund policy.

Espresso Italia Marketing, Inc.; Shadd Vickery; Robert Ashcroft; Whitney Banks; their agents and employees - SDO-086-02 - Summary Order to Cease and Desist and Revoking Registration

On October 28, 2002, the Securities Division entered a Summary Order to Cease and Desist and Revoking Registration against Espresso Italia Marketing, Inc. and its President, Shadd Vickery, for alleged violations of the Business Opportunity Fraud Act registration, disclosure and antifraud provisions. Espresso Italia offers an opportunity to purchase espresso equipment and locating services. Espresso Italia was registered as a Business Opportunity with the State of Washington. This registration has been suspended.

Epitome, LLC; Robert Neace, Jr.; James Billington; their agents and employees, Respondents - SDO-084-02 - Final Order to Cease and Desist as to James Billington

On October 7, 2002, the Securities Division entered a Final Order to Cease and Desist against James Billington. The Division had entered a Statement of Charges (SDO-077-02) in August of 2002 alleging that Epitome, LLC, Robert Neace, Jr., and Billington sold $525,000 in unregistered securities to fifteen investors. (For details, see SDO-083-02 below) Respondent Billington failed to request a hearing in the matter, and therefore the Final Order adopts the Findings of Fact and Conclusions of law set forth in the Statement of Charges. The Division ordered Billington to permanently cease and desist from violations of the registration and anti-fraud sections of the Securities Act. The Division has already entered final orders against both Epitome (SDO-082-02) and Neace (SDO-083-02).

Epitome, LLC; Robert Neace, Jr.; James Billington; their agents and employees, Respondents - SDO-083-02 - Cease and Desist as to Robert Neace, Jr.

Epitome, LLC; Robert Neace, Jr.; James Billington; their agents and employees, Respondents - SDO-082-02 - Cease and Desist as to Epitome, LLC

On September 16, 2002, the Securities Division entered a Final Order to Cease and Desist against Epitome, LLC (“Epitome”) (SDO-082-02) and Robert Neace, Jr. (“Neace”) (SDO-083-02). The Division had entered a Statement of Charges (SDO-077-02) in August of 2002 alleging that Respondents Epitome, James Billington (“Billington”), and Neace sold $525,000 in unregistered securities to fifteen investors. The securities sold by Billington and Neace were in the form of limited liability company interests in Epitome. Billington of Vancouver, Washington, and Neace of Wilsonville, Oregon, formed Epitome for the purpose of acquiring restricted stock in Paradigm4, Inc., a Delaware corporation. Billington and Neace allegedly told investors that Paradigm4, Inc. was going to conduct an initial public offering in the near future. Within months of Billington and Neace using investor funds to purchase stock in Paradigm4, Inc., the Paradigm4, Inc. filed for bankruptcy protection. Respondents Epitome and Neace failed to request a hearing in the matter, and therefore the Final Order adopts the Findings of Fact and Conclusions of law set forth in the Statement of Charges. The Division ordered Epitome and Neace to permanently cease and desist from violations of the registration and anti-fraud sections of the Securities Act. The charges against Billington are still pending, and the Division is seeking a 30-day suspension of his securities salesperson registration.

Worldwide Marketing Group, Inc., Marlene Briathwaite, its owners, principals, officers, agents and employees, Respondents - SDO-081-02 - Final Order to Cease and Desist

The Securities Division issued a Final Order which adopted the Findings of Fact and Conclusions of Law as stated in the Summary Order to Cease and Desist (SDO-O53-02) that was issued on July 8, 2002. The Division concluded that WorldWide Marketing Group violated the Business Opportunity Fraud Act by offering an unregistered envelope-stuffing home business. Further, WorldWide committed fraud by failing to provide full disclosure of material facts to potential purchasers; including a disclosure document or financial statements.

Nationwide Marketing, Wayne Alexander, their agents and employees, Respondents - SDO-080-02 - Summary Order to Cease and Desist

On August 29, 2002, the Securities Division entered Summary Order to Cease and Desist SDO-080-02 against Nationwide Marketing and its principal Wayne Alexander for alleged violations of the Business Opportunity Fraud Act registration, disclosure document and antifraud provisions. Nationwide Marketing, located in North Fort Myers, Florida, is the seller of an opportunity involving payment for in-home mail processing.

Mario Cuccomarino, Francesco Montalto: their employees and agents, Respondents - SDO-079-02 - Summary Order to Cease and Desist and Notice of Intent to order fines and affirmative relief.

The Securities Division entered a Summary Cease and Desist Order against Mario Cuccomarino and Francesco Montalto. The securities Division alleges that the Respondents engaged in a scheme to defraud investors by promising investors that they could earn 40% per year, with no risk, by investing in the production of olive oil. The Securities Division alleges that Mario Cuccomarino and Francesco Montalto have each violated the securities registration and anti-fraud provisions of the Securities Act.

Epitome, LLC; Robert Neace, Jr.; James Billington; their agents and employees, Respondents - SDO-077-02 - Statement of Charges and Notice of Intent to Enter a Cease and Desist Order and suspending securities salesperson registration.

On August 19, 2002, the Securities Division entered a Statement of Charges against Respondents Epitome, LLC, James Billington, and Robert Neace, Jr.. The division alleges that Respondents sold $525,000 in unregistered securities to fifteen investors. The securities sold by Billington and Neace were in the form of limited liability company interests in Epitome. The division alleges that Billington, of Vancouver, Washington, and Neace, of Wilsonville, Oregon, formed Epitome for the purpose of acquiring restricted stock in Paradigm4, Inc., a Delaware corporation, and told investors that Paradigm4, Inc. would conduct an initial public offering in the near future. Within months of Billington and Neace using investor funds to purchase stock in Paradigm4, Inc., the company filed for bankruptcy. The Securities Division alleges that the sales in Epitome were made in violation of the securities registration and anti-fraud laws. Billington is licensed as a securities salesperson and insurance agent in the state of Washington, and the division gave notice of its intent to suspend his securities salesperson registration.

Alpha Telcom, Inc.; American Telecommunications Company Inc., Respondents - SDO-076-02 - Entry of Findings of Fact and Conclusions of Law and Final Order to Cease and Desist and imposing fines as to Thomas Durso. See summary of case.

Fitness For Life Franchise Corporation, Respondent - SDO-075-02 - Consent Order

On August 6, 2002, the Securities Division entered a Consent Order with Fitness For Life Franchise Corporation to resolve the concern that it had violated the registration requirement provision of the Franchise Investment Protection Act. Fitness For Life Franchise Corporation offered and sold one franchise to be located in Washington to operate an individualized personal fitness training business under the names “Fitness Together” and “Fitness Together 1 Client, 1 Trainer, 1 Goal.” In entering the consent order, the company agreed to comply with the registration requirement in the future and to inform agents and employees of the existence and contents of the order. The franchisor has reimbursed the Division $500 for costs of investigation in the matter

In the Matter of National Communications Marketing Inc.; Stephen Wolfe; ETS Payphones, Inc.; Charles E. Edwards; Glen L. Ottmar; Earl C. Dennis; their employees and agents. On July 31, 2002, the Securities Division entered into a Consent Order (SDO-074-02) and Order Vacating SDO-012-01 as to Earl C. Dennis. He agreed to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act and is barred from applying for a securities salesperson or investment adviser representative license for a period of three years. Mr. Dennis reimbursed the Securities Division $3000 for its investigative costs, and is subject to a $90,000 fine in the event the Consent Order is violated.

On July 22, 2002, the Securities Division entered into a Consent Order with Ottmar (SDO-065-02). In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Ottmar is barred from applying for a securities salesperson or investment adviser representative license for a period of seven years. Mr. Ottmar reimbursed the Securities Division $2000 for its investigative costs, and is immediately subject to a $15,000 fine in the event the Consent Order is violated.

On June 14, 2002, Administrative Law Judge Roosevelt Currie, Jr. entered an Order of Dismissal/Final Order in the above matter relating to Charles Edwards, National Communications Marketing, Inc., and Stephen Wolfe for failure to file applications for adjudicative hearings within the time frame set forth in the Securities Division’s Summary Order to Cease and Desist dated February 26, 2001. This action followed a request made in January of 2002, by Securities Division for a default order against Edwards, National Communications Marketing, and Wolfe for not appearing at a pre-hearing conference and for failure to perfect appeal with the twenty-day allotted time frame. Edwards, National Communications Marketing and Wolfe were charged with violating the state securities registration and fraud laws in connection with the sale of pay phone route investments to Washington residents.

Imtek Corporation d/b/a Beneficial Assistance; William R. Evans, Chartered; Daniel Curtin; Frederick Weatherbee; Penny Hansen; Glen Ottmar; Steven Monroe; Roger Grossbohlin: their agents and employees, Respondents - SDO-73-02 - Consent Order and Order Vacating SDO-107-01 as to Roger Grossbohlin. See summary of case.

Alpha Telcom, Inc.; American Telecommunications Company Inc., Respondents - SDO-072-02 - Consent Order and Order Vacating SDO-9-02 as to Kelley W. Abbott. See summary of case.

Imtek Corporation d/b/a Beneficial Assistance; William R. Evans, Chartered; Daniel Curtin; Frederick Weatherbee; Penny Hansen; Glen Ottmar; Steven Monroe; Roger Grossbohlin; their agents and employees, Respondents - SDO-071-02 - Consent Order and Order Vacating SDO-107-01 as to Steven Monroe. See summary of case.

Grout Doctor Franchising Co. of America, Inc., Barry F. Baruh, their employees and agents, Respondents - SDO-070-02 - Summary Order to Cease and Desist

On August 7, 2002, the Securities Division entered Summary Order to Cease and Desist SDO-070-02 alleging that Grout Doctor Franchising Co. of America, Inc. and Baruh failed to comply with the Washington Franchise Investment Protection Act registration and disclosure requirement provisions in the offer and sale of a franchise to be located in Washington. The franchise involved a business performing grout cleaning and restoration services. Grout Doctor Franchising Co. of America, Inc. may be distinguished from Grout Doctor Global Franchise Corp., a currently registered franchisor in this state.

Dwight Clifford Peterson, Respondent - SDO-068-02 - Consent Order and Order Vacating SDO-026-02

On July 22, 2002, the Securities Division entered into a Consent Order with Dwight Clifford Peterson. The order vacates, as to Peterson, Summary Order to Cease and Desist and Notice to Impose Fine, SDO-26-02, which related to offers and sales of stock in Advanced Biometrics, Inc., a Washington corporation. In the consent order, Peterson agreed to cease and desist from violations of the Securities Act of Washington, including violations of the securities registration, broker-dealer and salesperson registration, and anti-fraud provisions. Peterson also agreed to pay the Securities Division $1,000 for its investigative costs and to the imposition of a $40,000 fine which fine is suspended if Peterson complies with the order.

John Aaron Stiver, Respondent - SDO-067-02 - Consent Order

On July 22, 2002, the Securities Division entered into a Consent Order with John Aaron Stiver. The order vacates, as to Stiver, Summary Order to Cease and Desist and Notice to Impose Fine, SDO-26-02, which related to offers and sales of stock in Advanced Biometrics, Inc., a Washington corporation. In the consent order, Stiver agreed to cease and desist from violations of the Securities Act of Washington, including violations of the securities registration, broker-dealer and salesperson registration, and anti-fraud provisions. Stiver also agreed to pay the Securities Division $1,000 for its investigative costs and to the imposition of a $40,000 fine which fine is suspended if Stiver complies with the order.

Imtek Corporation d/b/a Beneficial Assistance; William R. Evans, Chartered; Daniel Curtin; Frederick Weatherbee; Glen Ottmar; Steven Monroe; Roger Grossbohlin; their agents and employees, Respondents - SDO-064-02 - Consent Order and Order Vacating SDO-107-01 as to Glen Ottmar.

Alpha Telcom, Inc.; American Telecommunications Company Inc., Respondents - SDO-063-02 - Consent order vacating SDO-9-02 as to Glen Ottmar. See summary of case.

Safe Harbor Financial Services, Inc. and Michael Corey, Respondents - SDO-61-02 - Consent Order and Order Vacating SDO-039-02

On August 2, 2002, the Securities Division entered into a consent order with Michael Corey and Safe Harbor Financial Services, Inc. The Securities Division had entered a Summary Order to Cease and Desist against Safe Harbor Financial Services, Inc. and Michael Corey, alleging that Safe Harbor Financial Services, Inc., which targets seniors, is acting as an unregistered investment adviser. In the Consent Order, Corey and Safe Harbor Financial Services, Inc. each agreed to cease and desist from acting as an unregistered investment adviser and Michael Corey agreed to cease and desist from acting as an unregistered investment adviser representative, and they jointly reimbursed the Securities Division $500 for investigative costs.

Pita Pit, Inc., Respondent - SDO-056-02 - Consent Order

On June 26, 2002, the Securities Division entered a Consent Order with Pita Pit, Inc. to resolve the principal concern that it had violated the registration requirement provision of the Franchise Investment Protection Act. Pita Pit, Inc. offered and sold one franchise to be located in Washington to operate a retail establishment devoted to the preparation and sale of pita sandwiches and other food items. In entering the consent order, the company agreed to comply with the registration requirement in the future and to inform agents and employees as well as current franchisees of the existence and contents of the order. The franchisor has reimbursed the Division $500 for costs of investigation in the matter.

Imtek Corporation d/b/a Beneficial Assistance; William R. Evans, Chartered; Daniel Curtin; Frederick Weatherbee; Penny Hansen; Glen Ottmar; Steven Monroe; Roger Grossbohlin; their agents and employees, Respondents - SDO-055-02 - Consent Order vacating SDO-107-01 as to Frederick Weatherbee. See summary of case.

Worldwide Marketing Group, Inc., Marlene Briathwaite, its owners, principals, officers, agents and employees, Respondents - SDO-053-02 - Summary Order to Cease and Desist

On July 8, 2002, the Securities Division entered a Summary Order to Cease and Desist against Worldwide Marketing Group and Marlene Briathwaite of Miami, Florida for offering an unregistered business opportunity involving an envelope stuffing investment opportunity in which the prospective investor is told that he or she can earn $7 per each mail order catalog stuffed and mailed. Respondents failed to provide material disclosure information regarding the investment to a Washington offeree. The Respondents are ordered to cease and desist from violations of the registration and anti-fraud provisions of the Business Opportunity Fraud Act.

Combined Resource Systems, Inc., Barry Wise, Kevin Hall, its owners, principals, officers, agents and employees, Respondents - SDO-052-02 - Summary Order to Cease and Desist

On July 8, 2002, the Securities Division entered a Summary Order to Cease and Desist against Respondents Combined Resources, Barry Wise and Kevin Hall of Henderson Nevada for the offer of an unregistered business opportunity involving the purchase and resale of earthworms. Respondents failed to provide material disclosure information regarding the investment to a Washington offeree. The Respondents are ordered to cease and desist from violations of the registration and anti-fraud provisions of the Business Opportunity Fraud Act.

Alpha Telcom, Inc.; American Telecommunications Company Inc., respondents - SDO-059-02 - Consent order vacating SDO-9-02 as to Hans Lorentzen. See summary of case.

Alpha Telcom, Inc.; American Telecommunications Company Inc., respondents - SDO-057-02 - Consent order vacating SDO-9-02 as to Daniel Curtin. See summary of case.

Alpha Telcom, Inc.; American Telecommunications Company Inc., respondents - SDO-063-02 - Consent order vacating SDO-9-02 as to Glen Ottmar. See summary of case.

Alpha Telcom, Inc.; American Telecommunications Company Inc., respondents - SDO-054-02 - Consent order vacating SDO-9-02 as to Frederick Weatherbee. See summary of case.

Alpha Telcom, Inc.; American Telecommunications Company Inc., respondents - SDO-051-02 - Consent order vacating SDO-9-02 as to Dirk Petersen. See summary of case.

Alpha Telcom, Inc.; American Telecommunications Company Inc., respondents - SDO-050-02 - Consent order vacating SDO-9-02 as to Wilfred Alvarez. See summary of case.

Alpha Telcom, Inc.; American Telecommunications Company Inc., respondents - SDO-048-02 - Consent order vacating SDO-9-02 as to Jack Chandler. See summary of case.

Alpha Telcom, Inc.; American Telecommunications Company Inc., respondents - SDO-047-02 - Consent order vacating SDO-9-02 as to Fay L. Moyer. See summary of case.

Alpha Telcom, Inc.; American Telecommunications Company Inc., respondents - SDO-038-02 - Consent order vacating SDO-9-02 as to Roy Grady. See summary of case.

Gene David Hart, respondent - SDO-049-02 - Consent Order and order vacating SDO-023-02

On June 3, 2002, the Securities Division entered into a consent order with Gene David Hart. Mr. Hart was ordered to cease and desist from allegedly violating the registration and anti-fraud provisions of the Washington Securities Act. Mr. Hart agreed to repay five investors $22,000 and to pay $500 for investigative costs. Mr. Hart had allegedly placed advertisements in a Bremerton newspaper for 10% certificates of deposit that he allegedly falsely claimed that the CDs were a guaranteed investment.

General Marketing Associates, Inc., Alan Davis and Steven Chausse, Respondents - SDO-043–02 – Consent Order to Cease and Desist and vacating SDO-44-01 as to Respondent Steven Chausse

Romio’s Franchise Group, Inc., respondent - SDO-42-02 - Consent Order

On May 16, 2002, the Securities Division entered a Consent Order with Romio’s Franchise Group, Inc. to resolve the principal concern that it had violated the registration requirement provision of the Franchise Investment Protection Act. Romio’s Franchise Group, Inc. offered and sold franchises for the right to operate dine-in pizza restaurants for the retail sale of pizza and other products under the name “Romio’s.” In entering the consent order, the company agreed to comply with the registration requirement in the future, to properly prefile franchise advertisements to be used in this state, and to inform agents and employees as well as current franchisees of the existence and contents of the order. The franchisor has reimbursed the Division $700 for costs of investigation and unpaid registration fees.

Robert B. Pyles, Aka R. Bruce Pyles, Aka Stan Taylor, respondent - SDO-40-02 - Statement of Charges, and SDO-40-02(A) - Amended Statement of Charges

The Securities Division Amended SDO-40-02, a Statement of Charges and Notice of Intent to Issue an Order Suspending Registration and Imposing fines against Res pondent Robert B. Pyles, a securities salesperson, presently employed by Morgan Stanley DW, Inc. The Securities Division alleges that, while acting as a securities salesperson with CIBC Oppenheimer, the Respondent engaged in dishonest and unethical practices by accepting a loan, in the amount of $25,000, from a 77 year old widow, who was one of his brokerage customers. The Securities Division also alleges that the Respondent failed to repay the funds to the customer. The amendments allege that the Respondent failed to make timely filings of address changes with the Securities Division.

Global Vending, Inc.; Thomas J. Foley; their agents and employees, respondents - SDO-37-02 - Final Order to Cease and Desist

On May 8, 2002, the Securities Division entered a Final Order to Cease and Desist against Respondents Global Vending and Thomas J. Foley, of Sunrise, Florida. Global Vending sells equipment that enables purchasers to establish a vending business. Respondents failed to request a hearing in the matter, and therefore the Final Order adopts the Findings of Fact and Conclusions of law set forth in the Summary Order. Respondents were ordered to cease and desist from violations of the disclosure document, anti-fraud, and registration sections of the Business Opportunity Fraud Act. See SDO-20-02 .

Carl M. Ogren; Ogren & Associates, Inc.; Reliance Financial Group, Inc.; Paragon Capital Group, Inc.; Respondents - SDO-35-02 - Final Order to Cease and Desist

The Securities Division entered a final order as to Reliance Financial Group, Inc. and Paragon Capital Group, Inc., both of which are Florida corporations. Reliance and Paragon sold fractional interests in viatical settlements to Washington residents. The Securities Division alleged that these interests were unregistered securities, that the sales of the interests were made without adequate disclosure of the risks involved, and that Paragon Capital Group, Inc. acted as an unregistered broker-dealer, all in violation of the Securities Act of Washington.

Frederick (“Rocky”) Weatherbee, William Loyd Herron, Paul Vose, Brian Denike, Jeff Wordell and Enerphaze Corporation; Respondents - SDO-034-02 - Summary Order to Cease and Desist and Notice of Intent to Impose Fines

Enerphaze Corporation is a company located in Spokane, Washington that is purportedly in the business of selling a chemically-enhanced shot peening process for treating metal parts to reduce part wear and fatigue. The company has allegedly offered and sold more than $3.7 million of Enerphaze stock and stock warrants to more than 500 investors, many of whom are Washington residents. The offering was never registered with the Washington Securities Division. The salespersons were not registered securities salespersons when selling Enerphaze securities. The respondents allegedly failed to disclose material information when offering and selling the investments. Two of the respondents, Frederick Weatherbee and William Loyd Herron, are the subject of prior administrative orders.

International Investors Private Placement Fund, LLC(IIPPF); International Investment Advisors, LLC; William V. Fowler; their agents and employees, Respondents - SDO-33-02 - Final Order to Cease and Desist

The Securities Division alleges that Respondents sold $475,000 in unregistered securities to at least three investors, including two Washington residents. The securities sold by Fowler were in the form of limited liability company units in IIPPF, for the purported purpose of allowing investors to invest in private placement offerings. Respondents failed to request a hearing in the matter, and therefore the Final Order adopts the Findings of Fact and Conclusions of law set forth in the Statement of Charges. The Securities Division ordered Respondents to cease and desist from violations of the registration and anti-fraud sections of the Securities Act.

Synergy Alliance Group, LLC; Larry W. Tanner; their agents and employees; Respondents - SDO-032-02 - Final Order to Cease and Desist

The Securities Division entered a Final Order to Cease and Desist against Respondents, alleging that they solicited investors via the Internet for investment funds in exchange for equity shares. Respondents allegedly represented that investors could earn six times their original investment from loans made with investor funds to early stage companies. Respondents failed to request a hearing in the matter, and therefore the Final Order adopts the Findings of Fact and Conclusions of law set forth in the Summary Order. Respondents were ordered to cease and desist from violations of the registration and anti-fraud sections of the Securities Act and to pay a fine of $5,000.

Neil T. Adkins; C. John Cannon; Senior Estate Planning Group, Inc.; American National Security, Inc.; American National Security Monitoring, Inc.; American National Safety, Inc.; Research Safety Industries, Inc.; Executive Search, Inc.; Respondents - SDO-31-02 - Consent Order

The Securities Division entered into a Consent Order with Respondents. The Division issued a Summary Order to Cease and Desist (SDO-30-00) in March of 2000, and amended the Summary Order (SDO-30-00 Amended) in December of 2001. In that Summary Order, the Division alleged that Adkins and Cannon, two insurance salesmen, sold bonds issued by several of Adkins’ companies to insurance clients who were senior citizens, many of whom had used their life savings to buy the bonds. Adkins and Cannon purportedly misrepresented facts and failed to provide investors with material information about the companies in connection with the sales. Under terms of the Consent Order, Respondents agreed there was sufficient evidence to find the above facts, and were ordered to cease and desist from violations of the Securities Act. Adkins and Cannon may not apply to be a securities salesperson or investment adviser representative for seven years. Respondents also reimbursed the Division $20,000 for investigation costs and will be subject to an $80,000 fine if the Consent Order is violated.

Pacific West Securities, Inc. and Lorretta N. Elderkin, individually and as President of Pacific West Securities, Inc., Respondents - SDO-030-02 - Consent Order

On May 17, 2002, the Securities Division entered into a Consent Order with respondents Pacific West Securities, Inc. of Kent, Washington and its President, Lorretta N. Elderkin. The Division's case derived from Respondent's alleged failure to supervise a securities salesperson, Dorsey E. Rowan, Jr., who offered and sold unregistered securities to his Pacific West clients. The Order revoked Elderkin's licenses and barred her from reapplying for licensing for ten years. Pacific West agreed to hire an independent consultant to review the firm's supervisory systems and procedures, and once the review is complete, to adopt any recommended changes. In addition, Pacific West paid the Securities Division $80,000 in costs, paid a $40,000 fine, with an additional $40,000 suspended, and made a voluntary donation of $10,000 to the Investor Protection Trust.

Dorsey E. Rowan, Jr., Respondent - SDO-029-02 - Consent Order

On June 7, 2002, the Securities Division entered into a settlement with Dorsey E. Rowan, Jr. In the Order, Rowan, formerly a salesperson with Pacific West Securities, Inc., admitted to violating the anti-fraud, registration, and suitability provisions of the Securities Act. Rowan, who is no longer active in the securities industry, was barred from applying for registration as a securities salesperson for a period of five years. The charges stemmed from Rowan's sale of unregistered Nu West securities to his clients at Pacific West, who lost more than $2 million. In a related action, the Division recently entered into a settlement with Pacific West Securities, Inc. for failing to reasonably supervise Rowan's activities.

See SDO-011-01.pdf for a copy of the Rowan charges;

SDO-030-02.pdf for a copy of the Pacific West settlement; SDO-005-01.pdf for a copy of the Pacific West charges; and SDO-87-00.pdf for a copy of the Nu West summary Order.

Pan American Global Group, Inc.; Peter Pintarics; Hampton Bond Program; Hampton, Broadstone & Oliver, Inc.; and Patrick Pogue; Respondents - SDO-28-02 - Final Order to Cease and Desist

The Securities Division entered a final order as to Patrick Pogue, Hampton Broadstone & Oliver, Inc.; and the Hampton Bond program. The Securities Division alleged that these respondents were all involved in the sale of prime bank type investments as part of an advance fee scheme. Investors paid fees of $50,000 or more in fees in order to secure large loans for their businesses and benefit from profits on lending money to international financial institutions. The respondents are located in Tulsa, Oklahoma. The Washington sales of these investments were made through a Bellevue firm whose principal has fled the country. The Securities Division alleged that Pogue, Hampton Broadstone & Oliver, Inc.; and the Hampton Bond program have each violated the antifraud and registration of securities sections of the Securities Act of Washington.

EP Food Services, Inc.; Respondent - SDO-027-02 - Consent Order

The Securities Division entered a Consent Order with EP Food Services, Inc. to resolve the concern that it had allegedly violated the registration requirement provision of the Franchise Investment Protection Act. EP Food Services, Inc. offered and sold franchises to operate pizza restaurants under the name “Eatsa Pizza.” The company agreed to comply with the registration requirement of the Act and reimbursed the Division $500 for costs of investigation.

Dwight Clifford Peterson, Respondent - SDO-26-02 - Summary Order to Cease and Desist and Notice of Intent to impose fine

The Securities Division entered a Summary Cease and Desist Order against Dwight Clifford Peterson (“Peterson”) for alleged violations of the securities registration, broker-dealer registration and anti-fraud provisions of the Securities Act. The order alleges that Peterson offered and sold more than $600,000 worth of personal promissory notes secured by shares of Peterson’s Advanced Biometrics, Inc. (“ABI”) stock to approximately 100 investors. Peterson also sold more than $50,000 worth of his ABI stock to approximately 30 investors. When offering and selling the notes and stock, Peterson allegedly failed to disclose material information about the investments. The order gives notice of the Securities Division’s intent to impose a $50,000 fine against Peterson.

Wild on Wireless, Inc; Randal Blue; their agents and employees, Respondents - SDO-25-02 - Statement of charges and notice of intention to enter Order to Cease and Desist, Notice of Intent to revoke exemptions, and notice of intent to impose fines and order affirmative relief

The Securities Division entered a Statement of Charges against Respondents Wild on Wireless, Inc. (“WOW”), and Randal Blue (“Blue”), of Mount Vernon, Washington. The Securities Division alleges that Respondents sold $107,000 in unregistered securities to at least nineteen investors, including sixteen Washington residents. The securities sold by Blue were in the form of stock and debentures. The Securities Division alleges that the sales were made in violation of the securities registration and anti-fraud laws. The Division intends to impose a fine of up to $95,000 against Respondents.

Leather Medic, Inc.; Kyle Life; their agents and employees, Respondents - SDO-24-02 - Consent Order and Order vacating SDO-19-02

On April 9, 2002, the Securities Division entered Consent Order SDO-024-02 with Respondents Leather Medic and Kyle Life, of Fort Myers, Florida. The Division alleged that in connection with their offer of a franchise to a Washington resident via their website, Respondents violated the registration and anti-fraud provisions of the Franchise Act. Respondents agreed to comply with the registration provisions of the Franchise Act and reimbursed the Division $1000 for its investigation costs incurred in investigating the matter.

Gene David Hart and Hart Investing Company, Respondents - SDO-023-02 - Summary Order to Cease and Desist and Notice of Intent to impose fines and costs

The Securities Division entered a Summary Cease and Desist Order against Gene Hart for running a newspaper advertisement in the Bremerton Sun that offered Certificates of Deposit earning 10 percent interest. The Division alleges that Hart falsely claimed that investors would receive a “guaranteed” return on their investment. The Division alleges that, in fact, Hart appeared to be collecting investor funds for day trading. The Securities Division alleges that Hart has violated securities registration and anti-fraud provisions of the Securities Act.

International Investors Private Placement Fund, LLC; International Investment Advisors, LLC; William V. Fowler; their agents and employees, Respondents. - SDO-22-02 - Statement of charges and Notice of Intention to enter Order to Cease and Desist

The Securities Division entered a Statement of Charges against Respondents William V. Fowler, International Investors Private Placement Fund, LLC (“IIPPF”), and International Investment Advisors, LLC (“IIA”). The Securities Division alleges that Respondents sold $475,000 in unregistered securities to at least three investors, including two Washington residents. The securities sold by Fowler were in the form of limited liability company units in IIPPF, for the purported purpose of allowing investors to invest in private placement offerings. The Securities Division alleges that the sales were made in violation of the securities registration and anti-fraud laws, and in violation of Consent Order SDO-24-98.

Alpha Telcom, Inc.; American Telecommunications Company, Inc.; Kelley W. Abbott; Wilfrid Alvarez; Jack Chandler; Daniel Curtin; Thomas Durso; Roy Grady; Hans Lorentzen; Fay L. Moyer; Glen Ottmar; Dirk Peterson; Frederick Weatherbee; their agents and employees, Respondents - SDO-21-02 - Entry of Findings of Fact and Conclusions of Law and Final Order to Cease and Desist as to Alpha Telcom, Inc., and American Telecommunications Company, Inc.

The Securities Division entered a Final Order to Cease and Desist against Respondents Alpha Telcom, Inc. (“Alpha”) and American Telecommunications Company, Inc. (“ATC”). The Securities Division alleges that Respondents sold $3,922,000 in unregistered securities to at least 100 Washington residents. The securities sold to Washington residents were in the form of public telephones and telephone service agreements offered by Oregon-based companies Alpha and ATC, through several agents. Both Alpha and ATC failed to request a hearing in the matter, and therefore the Final Order adopts the Findings of Fact and Conclusions of law set forth in the Summary Order. Alpha and ATC have been ordered to pay disgorgement to investors by the United States District Court Judge for the District of Oregon. The Securities Division ordered Alpha and ATC to cease and desist from violations of the registration and anti-fraud sections of the Securities Act. Also see SDO-09-02

Global Vending, Inc.; Thomas J. Foley; their agents and employees, respondents - SDO-20-02

The Securities Division entered a Summary Order to Cease and Desist against respondents Global Vending and Thomas J. Foley, of Sunrise, Florida. The Division alleges that respondents violated the disclosure document, antifraud, and registration provisions of the Business Opportunity Fraud Act. Global Vending sells equipment that enables purchasers to establish a vending business. Respondents were ordered to cease and desist from further violations of the Business Opportunity Fraud Act pending a final determination of the outcome of this matter.

Leather Medic, Inc.; Kyle Life; their agents and employees, respondents - SDO-19-02

The Securities Division entered a Summary Order to Cease and Desist against respondents Leather Medic and Kyle Life, of Fort Myers, Florida. The Division alleges that in connection with their offer of a franchise to a Washington resident via their website the respondents violated the registration and anti-fraud provisions of the Franchise Act. Respondents were ordered to cease and desist from further violations of the Franchise Act pending a final determination of the outcome of this matter.

Wilfred Kent; Wilfred Kent & Associates; Wilfred Kent & Associates, LLC; Joshua Patten; Christian Woodhouse-Kent; their employees and agents - SDO-018-02 - Summary Order to Cease and Desist

The Securities Division entered a Summary Cease and Desist Order against Wilfred Kent, Wilfred Kent & Associates, Wilfred Kent & Associates, LLC, Joshua Patten and Christian Woodhouse-Kent. The Securities Division alleges that the Respondents engaged in a scheme to defraud investors by promising the investor 350 percent annual return on the investment by investing in inter-bank notes through offshore accounts. The Securities Division alleges that Wilfred Kent, Wilfred Kent & Associates, Wilfred Kent & Associates, LLC, Joshua Patten and Christian Woodhouse-Kent have violated the securities registration and anti-fraud provisions of the Securities Act.

Aeroseal, Inc., Robert Hageman, Mark Modera, their employees and agents, Respondents - SDO-017-02 - Consent Order

The Securities Division entered a Consent Order with Aeroseal, Inc. to resolve the concern that it had allegedly violated the registration requirement provision of the Franchise Investment Protection Act. Aeroseal, Inc. offered and sold franchises for businesses utilizing patented technology to provide duct-sealing services for heating, ventilation, and/or air conditioning (HVAC) systems. The company agreed to comply with the registration requirement in the future and reimbursed the Division $500 for costs of investigation.

Jay D. Kaiser, Senior Advisor, Inc. and Jay D. Kaiser, Respondents - Summary Order to Cease and Desist SD0-015-02 and Consent Order SDO-016-02.

Jay Kaiser, an unregistered investment adviser representative, and his corporation, an unregistered investment adviser, were the subjects of an enforcement action entered on May 16, 2002. In Summary and Consent Orders entered the same day, the Division charged Respondents with failing to register as required by RCW 21.20.040. In resolving the case, the Division permitted the respondents to register as required, providing that the firm pay its late registration fees and offer refunds to certain clients. In addition, the Respondents agreed to and paid $2,150 in late registration fees, paid $6,000 for reimbursement of the Division's investigative costs, and agreed to pay up to $3,000 per year for three years for the costs of future examinations.

The Samuel Edwards Group, The Sapphire Fund, Mark Alan Wagner, Michael Munkasey; Respondents - SDO-012-02 - Final Order to Cease and Desist

Synergy Alliance Group, LLC; Larry W. Tanner; their agents and employees, Respondents - SDO-11-02

The Securities Division issued a Summary Order to Cease and Desist against respondents Synergy Alliance Group and Larry W. Tanner of Winter Park, Florida. Respondents allegedly solicited investors via the Internet for investment funds in exchange for equity shares. Respondents allegedly represented that investors could earn six times their original investment from loans made with investor funds to early-stage companies. The Securities Division charged Respondents with violating the registration and anti-fraud provisions of the Securities Act. The Securities Division intends to impose a fine of $5,000.

Caller I-C Technologies, Inc.; Mark Gottschalk; their agents and employees, respondents - SDO-10-02

The Securities Division entered into a Consent Order with Respondents Caller I-C Technologies (“Caller I-C”) and Mark Gottschalk (“Gottschalk”). Caller I-C was formed for the purported purpose of selling video conferencing equipment. The Division alleges that Respondents sold unregistered securities in Caller I-C to seven Washington residents. Prior to the entry of the Consent Order, Gottschalk either repaid or entered into agreements to pay restitution to all seven Washington residents. Pursuant to the terms of the Consent Order, Respondents agreed to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, and reimbursed the Division $500 for its investigation costs in the matter.

Alpha Telcom, Inc. ; American Telecommunications, Inc. ; Kelley W. Abbott, Wilfrid Alvarez, Jack Chandler, Daniel Curtin, Thomas Durso, Roy Grady, Hans Lorentzen, Fay L. Moyer, Glen Ottmar, Dirk Peterson, and Frederick Weatherbee , respondents.

Alpha Telcom, Inc. ; American Telecommunications, Inc. - SDO-9-02

On January 29, 2002, the Securities Division entered a Statement of Charges against Respondents Alpha Telcom, Inc. (“Alpha”), American Telecommunications, Inc. (“ATC”), Kelley W. Abbott, Wilfrid Alvarez, Jack Chandler, Daniel Curtin, Thomas Durso, Roy Grady, Hans Lorentzen, Fay L. Moyer, Glen Ottmar, Dirk Peterson, and Frederick Weatherbee. The Securities Division alleges that Respondents sold $3,922,000 in unregistered securities to at least 100 Washington residents. The securities sold to Washington residents were in the form of public telephones and telephone service agreements offered by Oregon based companies Alpha and ATC, through several agents. The Securities Division alleges that the sales were made in violation of the securities registration and anti-fraud laws.

Roy Grady, Respondent (See Alpha Telcom, Inc. order above) - SDO-038-02 - Consent Order

On June 3, 2002, the Securities Division entered into a Consent Order with Roy Grady of Bellingham, Washington. In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Grady's securities salesperson license was suspended for a period of thirty days. Mr. Grady reimbursed the Securities division $10,000 for its investigative costs, and is immediately subject to a $10,000 fine in the event the Consent Order is violated.

Fay L. Moyer, Respondent (See Alpha Telcom, Inc. order above) - SDO-047-02 - Consent Order

On June 3, 2002, the Securities Division entered into a Consent Order with Fay L. Moyer of Omak, Washington. In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Moyer is barred from applying for a securities sales person or investment adviser representative license for a period of five years. Mr. Moyer also reimbursed the Securities Division $3,000 for its investigative costs, and is immediately subject to a $55,000 fine in the event the Consent Order is violated.

Jack Chandler, Respondent (See Alpha Telcom, Inc. order above) - SDO-048-02 - Consent Order

On June 3, 2002, the Securities Division entered into a Consent Order with Jack Chandler of Edmonds, Washington. In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Chandler is barred from applying for a securities salesperson or investment adviser license for a period of five years. Mr. Chandler also reimbursed the Securities Division $10,000 for its investigative costs, and is immediately subject to a $50,000 fine in the event the Consent Order is violated.

Wilfred Alvarez, Respondent (See Alpha Telcom, Inc. order above) - SDO-050-02 - Consent Order

On June 3, 2002, the Securities Division entered into a Consent Order with Wilfred Alvarez of Port Orchard. In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Alvarez's securities salesperson license was suspended for a period of thirty days. Mr. Alvarez also reimbursed the Securities Division $750 for its investigative costs, and is immediately subject to a $10,000 fine in the event the Consent Order is violated.

Dirk Petersen, Respondent (See Alpha Telcom, Inc. order above) - SDO-051-02 - Consent Order

On June 12, 2002, the Securities Division entered into a Consent Order with Dirk Petersen of Bellevue, Washington. In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Petersen's securities salesperson license was suspended for a period of thirty days. Mr. Petersen also reimbursed the Securities Division $3,000 for its investigative costs, and is immediately subject to a $20,000 fine in the event the Consent Order is violated.

Frederick Weatherbee, Respondent (See Alpha Telcom, Inc. order above) - SDO-54-02 - Consent Order

On June 17, 2002, the Securities Division entered into a Consent Order with Frederick Weatherbee of Spokane, Washington. In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Weatherbee is barred from applying for a securities salesperson or investment adviser representative license for a period of five years. Mr. Weatherbee also reimbursed the Securities Division $5,000 for its investigative costs, and is immediately subject to a $40,000 fine in the event the Consent Order is violated.

Kelley Abbott, Respondent (See alpha Telcom, Inc. order above) - SDO-72-02 - Consent Order

On August 1, 2002, the Securities Division entered into a Consent Order with Kelley Abbott of Spokane, Washington. In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Abbott is barred from applying for a securities salesperson or investment adviser representative license for a period of five years. Mr. Abbott also reimbursed the Securities Division $750 for its investigative costs, and is immediately subject to a $5,000 fine in the event the Consent Order is violated.

Kelley Abbott, Respondent (See Alpha Telcom, Inc. order above) - SDO-072-02 - Consent Order

Thomas Durso, Respondent (See Alpha Telcom, Inc. order above) - SDO-076-02 - Entry of Findings of Fact and Conclusions of Law and Final Order to Cease and Desist and imposing fines

On August 14, 2002, the Securities Division entered a Final Order to Cease and Desist against Respondent Thomas Durso. Mr. Durso failed to request a hearing in the matter, and therefore the Final Order adopts the Findings of Fact and Conclusions of law set forth in the Summary Order. The Securities Division ordered Mr. Durso to cease and desist from violations of the registration and anti-fraud sections of the Securities Act. The Division also ordered Mr. Durso to pay a fine of $55,000.

Starcash, Inc., Jeanne LeClercq, Frederick Jay Shapiro, Kip Marsique, and Steven C. Searson, respondents - SDO-007-02 - Intent to impose fines and order affirmative relief; Promises Consulting Corporation and Gerald J. Glasser, respondents - SDO-006-02 - Summary Order to Cease and Desist.

On January 24, 2002, the Division issued two related Summary Orders against firms engaged in the offer and sale of unregistered securities. Starcash, Inc., a Florida check cashing corporation, was order to cease fraudulently offering its unregistered securities using unregistered broker/dealers. SDO-007-02 Promises Consulting, a Nevada corporation owned and operated by Gerald Glasser of Marina Del Rey, California, was ordered to cease fraudulently offering the Starcash securities. SDO-006-02 Both firms have been given notice of the Department's intent to impose substantial fines and order affirmative relief, including restitution.

Sun Services, Inc., John T. Jones and John W. Wachsmith, respondents - SDO-05-02

A Summary Order to Cease and Desist and notice of intent to order fines and affirmative relief was issued against Sun Services, Inc., a Nevada corporation having its primary place of business in Palm Springs, California, as well as John T. Jones, who together with his wife controls 80 percent of Sun Services, and John W. Wachsmith, for alleged violations of the Securities Act of Washington.

Skip Clemens and TAC International Ltd., its employees and agents, respondents - SDO-4-02 - Consent Order.

The Securities Division entered into a Consent Order with Respondent Skip Clemens in which the Division alleged that Clemens offered and sold unregistered securities, violated the anti-fraud provision, and acted as an unregistered broker-dealer and/or salesperson. Clemens represented TAC International that offered an investment in offshore trading of financial instruments called debentures that are purportedly issued or traded among major U.S. and European banks and financial institutions. Since 1993, the Federal Reserve Board, the Securities and Exchange Commission and other regulatory agencies have alerted the public that such debenture trading programs and other similar schemes may be fraudulent and often do not involve bona fide financial instruments or actual trading of securities.

Mr. Plant, Inc.; Lawrence R. McCarthy; their agents and employees, Respondents - SDO-2-02 - Final Order to Cease and Desist.

The Securities Division entered into a Final Order to Cease and Desist against Respondents Mr. Plant and Lawrence R. McCarthy. The Division alleges that in connection with their offer of a franchise to a Washington resident via their website, Respondents violated the Franchise Act. Respondents failed to request a hearing in the matter, and therefore the Final Order adopts the Findings of Fact and Conclusions of law set forth in the Summary Order. Respondents were ordered to cease and desist from violations of the registration and anti-fraud sections of the Franchise Act.

Lane Funding Association; Bobi Lane; Robert Foust; their employees and agents, Respondents - SDO-109-01 - Summary Order to Cease and Desist

The Securities Division entered a Summary Cease and Desist Order against Lane Funding Association, Bobi Lane and Bob Foust. The Securities Division alleges that the Respondents engaged in a “Ponzi scheme” to defraud investors by promising the investors 120 percent annual return on their investment. The Respondents have been criminally charged with securities fraud in Linn County, Oregon. The Securities Division alleges that Lane Funding, Lane and Foust have violated the securities registration and anti-fraud provisions of the Securities Act.

Northwest Best Direct, Inc., d.b.a. Spokane's Best Book, d.b.a. Best Book Publications, Vincent E. Bozzi, and Emily G. Bozzi - SDO-108-01 - Final Order to Cease and Desist and revoke exemptions.

On December 19 the Securities Division entered a Final Order to Cease and Desist against the above firm and its officers, Vincent and Emily Bozzi. The firm, a Spokane publisher of magazines, allegedly offered unregistered securities to Washington residents. After a Summary Cease and Desist Order was issued in November, the firm submitted a statement in lieu of a hearing requesting a reduction in fines. The Division, after considering the evidence in the case, imposed injunctive relief to prevent future violations and imposed a $20,000 fine, with the entire amount suspended based on future compliance with the Securities Act. A copy of the Summary Order issued in November against the firm may be reviewed at the following link: SDO-095-01

Imtek Corporation d.b.a. Beneficial Assistance: William R. Evans, Chartered; Daniel Curtin; Frederick Weatherbee; Penny Hansen; Glen Ottmar; Steven Monroe; Roger Grossbohlin; their agents and employees, Respondents - Summary Order to Cease and Desist, Notice of intent to suspend or revoke Securities Salesperson Registration, and notice of intent to impose fines and order affirmative relief - SDO-107-01

The Securities Division entered a Summary Order to Cease and Desist against Respondents Imtek Corporation d.b.a Beneficial Assistance, William R. Evans, Chartered (a corporation); Daniel Curtin, Frederick Weatherbee, Penny Hansen, Glen Ottmar, Steven Monroe, and Roger Grossbohlin. The Securities Division alleges that Respondents sold more than $1,000,000 in unregistered securities to at least 45 Washington residents. The securities sold to Washington residents were in the form of viatical settlement contracts and were offered by Beneficial and Evans, both Maryland corporations, through several agents. The Securities Division alleges that the sales were made in violation of the securities registration and anti-fraud laws.

Daniel Curtin, Respondent (See Beneficial Assistance order above) - SDO-058-02 - Consent Order and Order Vacating SDO-107-01 as to Daniel Curtin.

On July 1, 2002, the Securities Division entered into a Consent Order with Daniel Curtin of Olympia, Washington. In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Curtin is barred from applying for a securities salesperson or investment adviser representative license for a period of five years. Mr. Curtin also reimbursed the Securities Division $2,000 for its investigative costs, and is immediately subject to a $15,000 fine in the event the Consent Order is violated.

Frederick Weatherbee, Respondent (See Beneficial Assistance order above) - SDO-055-02 - Consent Order.

On June 17, 2002, the Securities Division entered into a Consent Order with Frederick Weatherbee of Spokane, Washington. In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Weatherbee is barred from applying for a securities salesperson or investment adviser representative license for a period of five years. Mr. Weatherbee also reimbursed the Securities Division $2,500 for its investigative costs, and is immediately subject to a $5,000 fine in the event the Consent Order is violated.

On July 22, 2002, the Securities Division entered into a Consent Order (SDO-064-02) and Order Vacating SDO-107-01 as to Glen Ottmar of Bellevue, Washington. In addition to agreeing to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, Mr. Ottmar is barred from applying for a securities salesperson or investment adviser representative license for a period of five years. Mr. Ottmar also reimbursed the Securities Division $3,000 for its investigative costs, and is immediately subject to a $65,000 fine in the event the Consent Order is violated.

Jeanne A. Perkins SDO-001-02 - Consent Order and Order Vacating SDO-099-01

On January 8, 2001, the Securities Division entered in