Washington State Department of Financial Institutions

2006 Administrative Orders

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Metropolitan Investment Securities, Inc. Securities Salesperson: Ross Bruner – Final Order S-04-041-07-FO01

On December 29, 2006, the Department of Financial Institutions entered a Final Order in the Matter of Metropolitan Investment Securities, Inc. and in Re: Ross E. Bruner. The Order affirmed the Proposed Findings of Fact, conclusions of Law and Initial Decision made on July 20, 2006 and in which the Director concluded that the Division of Securities had failed to demonstrate, either by clear, cogent and convincing evidence (in regard to license suspension) or a preponderance of evidence (in regard to imposition of fines or costs) that Bruner violated the anti-fraud provisions of RCW 21.20.010(2); the “suitable investment recommendation” provisions of RCW 21.20.702; and engaged in dishonest and unethical sales practices under RCW 21.20.110(1)(g) as defined in WAC 460-22B-090(3) as alleged in the Securities Division Statement of Charges issued on October 27, 2004 S-04-041-04-SC01.


Francis Bart Bertholic, Jr., First Liberty Financial Services, Inc., BB & A Properties, LLC, BB & A Properties I, LLC, BB & A Properties V, LLC, BB & A Properties VII, LLC, and BB & A Properties X, LLC - S-06-024-06-SC01 - Statement of Charges

On December 27, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Order Respondents to Cease and Desist, Pay Restitution, Impose Fines, Charge Costs, and Deny Future Registrations against the above-named Respondents. The Statement of Charges alleges the Respondents have raised $883,000 from nine investors by offering and selling unregistered stock and promissory notes. The stock, issued by First Liberty Financial Services, was sold exclusively to clients of Mr. Bertholic’s insurance and brokerage business. The promissory notes, issued by both Mr. Bertholic and BB & A Properties, were initially sold exclusively to Mr. Bertholic’s insurance and brokerage clients, but were later advertised in the Spokane Spokesman-Review and on the Internet. The Respondents, all of Spokane, were charged with making material misrepresentations and omissions in connection with the offers and sales, a violation of the anti-fraud provision of the Securities Act of Washington. The Securities Division intends to order restitution to investors, impose fines and costs totaling more than $275,000, and bar any future securities registration filed by Mr. Bertholic. All of the named Respondents have a right to request a hearing on the Statement of Charges.


Pacific Coast Investment Co. - S-06-121-06-CO01 - Consent Order

On December 19, 2006, the Securities Division entered into a Consent Order with Respondent Pacific Coast Investment Co. (PCIC) vacating, as to PCIC, Amended Statement of Charges S-06-121-06-TO02 against Pacific Coast Investment Co. and Raymundo Salgado entered on November 9, 2006. The Division alleged, in part, that PCIC and Salgado sold mortgage paper securities in violation of the Washington State Securities Act by not maintaining proper books and records for the company and failing to provide investors with required disclosure documents so the investors could make informed decisions. The Division also alleged that PCIC and Salgado failed to provide investors with material information regarding the investments in violation of the anti-fraud provision of the Securities Act. PCIC neither admitted nor denied the violations. PCIC agreed to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act. Additionally, PCIC has waived its right to a hearing in this matter and to a judicial review of the order.


Taxi Vision Media, Inc.; Ryan C. Gould - S-05-130-06-CO01 - Consent Order as to Ryan C. Gould

On December 18, 2006, the Securities Division entered into a Consent Order with Ryan C. Gould (“Gould”). The Consent Order resolves an action filed on August 8, 2006 against Taxi Vision Media, Inc. (“Taxi Vision”) and Gould. The Division alleged that Taxi Vision and Gould offered and sold unregistered investments in Taxi Vision to a Washington state resident. The Division further alleged that the Respondents violated the anti-fraud provisions of the Securities Act of Washington in connection with the offer of Taxi Vision stock. Pursuant to the terms of the Consent Order, Gould was ordered to cease and desist from offering or selling unregistered securities in Washington State, acting as a securities salesperson in Washington State without being registered and from violating the anti-fraud section of the Securities Act of Washington. As a part of the Order, Gould agreed to pay $4,000 in fines. Gould waived his right to a hearing and further proceedings in the matter.


MCube Petroleum, Inc., Laramie Petroleum,, Inc., Diski Petroleum, LLC, Basilam Petroleum, LLC, Halmahera – Rembang, LLC, George Atwater and Robert Miracle - S-06-101-06-SC01 - Statement of Charges

On December 12, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Issue an Order to Desist, Impose Fines and Charge Costs against MCube Petroleum, Inc.; Laramie Petroleum,, Inc.; Diski Petroleum, LLC; Basilam Petroleum, LLC; Halmahera – Rembang, LLC; George Atwater; and Robert Miracle (collectively “Respondents”). The Division alleged Respondents raised at least $22 million from at least 72 investors, 48 of whom are Washington residents by offering and selling unregistered interests in oil and gas companies whose oil blocks are represented to be located in Indonesia. The Securities Division further alleged that certain Respondents acted as unregistered broker-dealers or securities salespersons. The Division also alleged that the offer and sale of securities by the Respondents violated the anti-fraud provisions of the Securities Act of Washington. The Securities Division intends to order 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 the right to request a hearing on the Statement of Charges.

This order was amended February 21, 2007 by entry of S-06-101-07-TO02 Amended Statement of Charges and Summary Order to Cease and Desist.

This order was amended April 10, 2007 by entry of S-06-101-07-FO01 - Final Order to Cease and Desist and Impose Fines and Charge Costs.


Raymundo Salgado S-06-121-06-CO02 Consent Order

On December 11, 2006, the Securities Division entered into a Consent Order with Respondent Raymundo Salgado vacating, as to Salgado, Amended Statement of Charges S-06-121-06-TO02 against Pacific Coast Investment Co. and Salgado entered on November 9, 2006. The Division alleged, in part, that Pacific Coast Investment Co. and Salgado sold mortgage paper securities in violation of the Washington State Securities Act by not maintaining proper books and records for the company and failing to provide investors with required disclosures documents so the investors could make informed decisions. The Division also alleged that Pacific Coast Investment Co. and Salgado failed to provide investors with material information regarding the investments in violation of the anti-fraud provision of the Securities Act. Salgado neither admitted nor denied the violations. Salgado agreed to a suspension of his securities salesperson license for nine months and to not act as an officer, director, partner, or equity owner of a broker-dealer, investment adviser or mortgage paper securities issuer for four years. Additionally, Salgado has agreed to pay a fine of $20,000 and has waived his right to a hearing in this matter and to a judicial review of the order.


AminoPath Labs, L.L.C. - S-04-244-06-CO01 - Consent Order

On December 11, 2006, the Securities Division entered into a Consent Order with AminoPath Labs, L.L.C. (“AminoPath”). The Securities Division entered a Statement of Charges and Notice of Intent to Impose Fines and Costs against AminoPath on March 15, 2006 for engaging in sales of securities to Washington State residents. In the Consent Order AminoPath and the Securities Division agreed that AminoPath would cease and desist from violations of RCW 21.20.010 and RCW 21.20.350, would disclose the Consent Order to all investors and potential investors, and would not offer or sell securities in the State of Washington for a period of ninety days from the entry of the Consent Order. AminoPath agreed to pay costs, fees, and other expenses of $2,000. Respondents waived their right to a hearing in the matter and judicial review of the matter.


Mark Hopkins and Paulina Hopkins dba All American Decal Guy, All American Decal Guy, LLC, Mark Hopkins, Paulina Hopkins - S-06-103-06-SC01- Statement of Charges

On December 11, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist against Mark Hopkins and Paulina Hopkins dba All American Decal Guy, All American Decal Guy, LLC, Mark Hopkins and Paulina Hopkins (collectively “Respondents”). The Statement of Charges alleges that the Respondents offered and sold an unregistered franchise in the State of Washington. The franchise involves the operation of a custom decal service whereby franchisees create, apply and sell decals. The purchaser of the opportunity resided in Ferry County, State of Washington. The Respondents have the right to request a hearing on the Statement of Charges.

View the Consent Order entered against Mark Hopkins and Paulina Hopkins dba All American Decal Guy on January 29, 2007.


Racing Limos, Inc, Bryan Pease - S-06-153-06-CO01 - Consent Order

On December 6, 2006, the Securities Division entered into a Consent Order with the Respondents, Racing Limos, Inc. and Bryan Pease. The Division alleged that the Respondents offered and sold unregistered franchises in the State of Washington. The franchise involved the operation of a business that provides transportation and mobile advertising via racing-themed car and truck limousine rentals. The purchaser of the franchise resided in Spokane County. The Respondents agreed to cease and desist from any violation of the Franchise Investment Protection Act. The Respondents have paid investigative costs of $720. The Respondents waived their rights to judicial review.


Holiday Enterprises, Inc., Richard J. Morrell aka Nick Morrell, Andrew DeVoe, and Sherri Albano - S-05-227-06-SC01 - Statement of Charges

On November 22, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist (“Statement of Charges”) against Holiday Enterprises, Inc., Richard J. Morrell aka Nick Morrell, Andrew DeVoe, and Sherri Albano. The Statement of Charges alleges that Respondents sold a business opportunity to own a business selling computer printer ink cartridges from display racks to at least three resident of the state of Washington while not registered as a business opportunity under the Washington State Business Opportunity Fraud Act of Washington. The Statement of Charges further alleges that Respondents violated the anti-fraud provision by making misrepresentations and omissions to Washington residents, including omitting support for estimated and projected earnings statements, omitting the number of business opportunities sold or leased and the number of business opportunities that have failed, and failing to provide financial statements. Respondents have a right to request a hearing on the Statement of Charges.

This order was amended January 23, 2007 by entry of S-05-227-07-SC02 - amended statement of charges.

This matter was resolved as to Richard J. (Nick) Morrell by the entry of a Consent Order, (S-05-227-07-CO01) on April 13, 2007.


North American Resource Group, Inc., Southeastern Energy, Inc., Falling Waters Prospect, Southeastern Buck Mountain Prospect, Southeastern Caney Creek Prospect, Huddleston Annex Prospect, Stephens Prospect, Gilreath Mill Prospect, G. Alan Murrell, Thomas Emberton, Jr. and Doug Smith - S-05-113-06-CO01 - Consent Order

On November 13, 2006, the Securities Division entered a Consent Order vacating orders S-05-113-06-FO01 and S-05-113-06-SC01 as to North American Resource Group, Inc.; Southeastern Energy, Inc.; Falling Waters Prospect; Southeastern Buck Mountain Prospect; Southeastern Caney Creek Prospect; Huddleston Annex Prospect; Stephens Prospect; Gilreath Mill Prospect; G. Alan Murrell; Thomas Emberton, Jr.; and Doug Smith; (collectively “Respondents”). In the Final Order and Statement of Charges the Division alleged Respondents raised $226,500 from eleven Washington State residents by offering and selling unregistered interests in an oil and gas drilling project. The investors resided in King, Pierce and Grays Harbor counties. The Division further alleged Respondents violated the anti-fraud provisions of the Securities Act of Washington in connection with the offer and sale of such securities. Respondents neither admit or deny the findings of fact and conclusions of law. Respondents agreed to cease and desist from any violation of the Securities Act. The Respondents have paid fines and investigative costs of $68,175. The Respondents each waived their right to a hearing and judicial review of this matter.


Alternative Capital, L.L.C. - Bradford Vorhees - S-05-236-06-CO01 - Consent Order

On November 13, 2006, the Securities Division entered a Consent Order with Alternative Capital, L.L.C. and Bradford Vorhees (collectively “Respondents”). The Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist, Impose Fines and Costs, and to Deny Registration against Respondents on June 19, 2006. In the Consent Order the Respondents and the Securities Division agreed that Respondents would cease and desist from violations of RCW 21.20.040 and RCW 21.20.110. Respondents agreed to pay a fine of $1,000 and costs, fees, and other expenses of $500. Respondents waived their right to a hearing in the matter and judicial review of the matter.


John A.B. Black - S-06-094-06-SC01 - Statement of Charges

On November 13, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist and Denial of Future Application against John A. B. Black (“Black”). The Division alleged that Black recommended the purchase and sale of variable annuities to two Washington state residents without reasonable grounds to believe the transactions were suitable. The Division further alleged that Black engaged in dishonest or unethical practices in the securities business. The Respondent has a right to request a hearing in this matter.


Pacific Coast Investment Company - S-06-121-06-TO02 – Amended Summary Order

On November 9, 2006, the Securities Division entered an Amended Stop Order Suspending Securities Registration and Denying Re-Registration, Summary Order Suspending, Denying or Revoking Broker-Dealer and Salesperson Registration, and Summary Order Revoking Exemptions and Notice of Intent to Impose a Fine against Pacific Coast Investment Company (PCIC) and Raymundo Salgado. This Order amended the original Stop Order, number S-06-121-06-TO01, entered on June 28, 2006. The Division alleged that PCIC, principally located in Seattle, has not filed complete information in connection with its mortgage broker-dealer registration applications, recommended that investors sell property without required disclosures, and made materially false or misleading statements or omissions to investors regarding security interests, property values, borrower credit and financial information, pending litigation and other matters. The Division denied PCIC’s applications to renew its securities, broker-dealer, and sales agent registrations; summarily suspended these current registrations; revoked PCIC’s ability to use certain exemptions from securities registration; and gave notice of its intent to impose a fine against Raymundo Salgado. PCIC and Raymundo Salgado have requested a hearing in this matter.

This matter was resolved as to Raymundo Salgado by entry of a Consent Order on December 11, 2006.

This order was resolved as to Pacific Coast Investment Company by the entry of a Consent Order on December 19, 2006.


Regal Nails, LLC, Regal Nails Salon & Spa, LLC - S-06-154-06-CO01 - Consent Order

On November 6, 2006, the Securities Division entered into a Consent Order with the Respondents, Regal Nails, LLC and Regal Nails Salon & Spa, LLC. The Division alleged that the Respondents offered and sold unregistered franchises in the State of Washington. The franchise involved the operation of a nail care salon located in Wal-Mart retail centers. The purchasers of the opportunity reside in Benton, Clark, Franklin, Grant, Kitsap, Pierce, Snohomish, Spokane and Yakima counties. The Respondents agreed to cease and desist from any violation of the Franchise Investment Protection Act. The Respondents have paid investigative costs of $840. The Respondents waived their rights to judicial review.


Jae Pak and Seattle Capital Group - S-03-002-06-CO02 Consent Order

On November 6, 2006, the Securities Division entered into a Consent Order with Respondents, Jae Pak and Seattle Capital Group, vacating as to Jae Pak and Seattle Capital Group the Amended Summary Order to Cease and Desist and Notice of Intent to Impose Fines and Order Affirmative Relief entered on January 26, 2004. The Division alleged, in part, that from at least June 2000 through May 2001, the Respondents offered and sold securities and offered investment advice and services for a fee to at least 23 investors, raising over $2.9 million. Respondents solicited investments and then began to conduct high volume day trading using investor’s funds. Other funds received from investors were used to pay business expenses, salaries and personal expenses. The Securities Division alleged that the Respondents acted as unregistered investment advisers, investment adviser representatives, broker-dealers and/or securities salespersons. The Division also alleged that the offer and sale of securities by Respondents violated the anti-fraud provisions of the Securities Act of Washington. Respondents, Jae Pak and Seattle Capital Group, neither admitted nor denied the violations. Respondents agreed to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act and to pay costs of $2,000. The Respondents waived their rights to a hearing in this matter and to judicial review of the order.

View the original Summary Order entered against Jae Pak and Seattle Capital Group June 20, 2003.


Hope Investments, Inc., Thomas Alan Welter - S-05-158-06-FO02 – Final Order

On October 23, 2006, the Securities Division entered a Final Order to Cease and Desist against Thomas Alan Welter of Federal Way, Washington. Welter was the former President of Hope Investments, Inc. This is the Final Order as to Welter regarding a Statement of Charges entered June 19, 2006, against Hope and its principals, Thomas A. Welter of Federal Way and Michael J. Inman of Colville. The Division found that from 1997 through 2003, Welter falsely promised investors high-yield returns from investments in gold-backed historical railroad bonds. In addition to misrepresenting the investment value of the bonds, Welter was found to have knowingly failed to disclose that the price and investment valuation of the bonds were fraudulent, and that there were no bond redemption programs that would generate the promised returns. Welter was found to have violated the anti-fraud and registration provisions of the Securities Act, and enjoined from future violations of the Act. He has a right to seek judicial review of this matter. The Securities Division previously resolved the cases against both Hope and Michael Inman.


Global Resources, Inc; Stuart Pope; and John Maginnis - S-06-106-06-SC01 - Statement of Charges

On October 23, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist (“Statement of Charges”) against Global Resources, Inc.; Stuart Pope; and John Maginnis. The Statement of Charges alleges that Respondents sold a business opportunity to own a business selling prepaid cellular telephones from a vending machine to a resident of the state of Washington while not registered as a business opportunity under the Washington State Business Opportunity Fraud Act of Washington. The Statement of Charges further alleges that Respondents were engaged in a course of business which operates as a fraud by selling the business opportunity and failing to ship the product and by requesting additional funds after the program has been purchased to ship the product. Respondents have a right to request a hearing on the Statement of Charges.


David A. Ball dba Beacon Development Group and David A. Ball - S-05-225-06-TO01 - Summary Order

On October 23, 2006, the Securities Division entered a Summary Order to Cease and Desist and Notice of Intent to Impose Fines and Charge Costs against David A. Ball dba Beacon Development Group and David A. Ball (collectively “Respondents”). The Securities Division alleges that Respondents offered and/or sold unregistered securities in a real estate development endeavor without adequate disclosure to Washington residents. Beacon Development represents its principal place of business to be The Dalles, Oregon. The Securities Division ordered Respondents to cease and desist from violating the registration and anti-fraud provisions of the Securities Act of Washington. Respondents have a right to request a hearing on the Summary Order.

View the Final Order entered January 2, 2007 against David A. Ball dba Beacon Development Group and David A. Ball.


Premium Income Corp, Inforex, Ltd., Tri-Forex International, Ltd., and Gerald Leo Rogers - S-05-035-06-CO01 - Consent Order

On October 18, 2006, the Securities Division entered into a Consent Order Vacating Order Number S-05-035-05-TO01 as to Premium Income Corp, Inforex, Ltd., Tri-Forex International, Ltd., and Gerald Leo Rogers (Respondents). In the Summary Order, the Division alleged that from January 2004 and continuing through February 2005, Respondents raised over $8,500,000 through their agents and/or employees involving the purported writing of foreign currency calls. The Securities Division further alleged that Respondents made material misrepresentations regarding the investment opportunity. Respondents neither admit, nor deny the findings of fact and conclusions of law. Respondents agreed to cease and desist from violations of the Securities Act of Washington. Respondents have waived their rights to a hearing and judicial review of this matter.


Metropolitan Investment Securities, Inc. Securities Salesperson: Steven F. Haug - S-04-041-05-CO07 - Consent Order

On October 17, 2006, the Securities Division entered into a Consent Order with Steven F. Haug (“Haug”). The Division had entered a Statement of Charges on October 27, 2004 against fifteen former Metropolitan Investment Securities, Inc. (“MIS”) securities salespersons, including Haug. The Division alleged that MIS securities salespersons made unsuitable recommendations of securities offered by Metropolitan Mortgage and Securities Co., Inc. (“Metropolitan”) and Summit Securities, Inc. (“Summit”) to Pacific Northwest investors, who were seeking low risk investments to sustain them in their retirement years, thereby improperly concentrating the limited assets of these investors in Metropolitan and Summit. Pursuant to the terms of the Consent Order, Haug was censured by the Division. Haug waived his right to a hearing and further proceedings in this matter.


Jason T. Rose, G. Byron Hogan, Berkshire Resources LLC, Berkshire (4OL) LLP - S-06-115-06-SC01 - Statement of Charges

On October 13, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Impose Fines, and Recover Costs against Jason T. Rose, G. Byron Hogan, Berkshire Resources LLC, and Berkshire (4OL) LLP, (collectively “Respondents”). Berkshire represents itself as a development and management company specializing in oil and gas exploration in the Appalachian Basin, Texas, Oklahoma, and the Gulf Coast. The Statement of Charges alleges that Respondents offered to sell unregistered securities to a Washington State resident and acted as unregistered broker-dealers or securities salespersons. The Statement of Charges further alleges that the offer and sale of securities by the Respondents violated the anti-fraud provisions of the Securities Act of Washington. The Securities Division intends to order Respondents to cease and desist from violating the Securities Act of Washington, and gave notice of its intent to collect fines and recover costs. Respondents have a right to request a hearing on the Statement of Charges.


Ensentech, Inc., Gary G. Scott, Hydro-Clean Fuel Systems, Inc., and Gary L. Davis - S-05-089-06-CO01 - Consent Order

On October 11, 2006, the Securities Division entered a Consent Order with Respondents, Ensentech, Inc., Gary G. Scott, Hydro-Clean Fuel Systems, Inc., and Gary L. Davis, which settled Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist and Notice of Intent to Impose Fines and Charge Costs, Order number S-05-089-05-SC01, entered on September 6, 2005. Respondents neither admitted, nor denied the findings of fact and conclusions of law alleged by the Department. Respondents agreed to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act. Respondents also agreed to not use any exemptions for any securities offerings in the state of Washington for the next five years. Respondents paid costs of $5,000. Respondents waived their right to a hearing and judicial review of this matter.


Press-A-Print, International, LLC S-06-083-06-CO01 - Consent Order

On October 11, 2006, the Securities Division entered into a Consent Order with Press-A-Print, International, LLC (“Press-A-Print”). Press-A-Print sold a business opportunity to own and operate a business that sells specialty printed merchandise to residents of the state of Washington while not registered as a business opportunity under the Washington State Business Opportunity Fraud Act of Washington. Pursuant to the terms of the Consent Order, Press-A-Print agreed to cease and desist from violations of the registration, disclosure, and the anti-fraud sections of the Business Opportunity Fraud Act of Washington, agreed to disclose the consent order to prospective purchasers of the business opportunity, and agreed to provide disclosure documents to prospective purchasers. Press-A-Print waived its right to a hearing in the matter and judicial review of the matter.


Metropolitan Investment Securities, Inc. Ryan S. Saccomanno S-04-041-05-C013 - Consent Order

On October 3, 2006, the Securities Division entered into a Consent Order with Ryan S. Saccomanno (“Saccomanno”). The Division had entered a Statement of Charges on October 27, 2004 against fifteen former Metropolitan Investment Securities, Inc. (“MIS”) securities salespersons, including Saccomanno. The Division alleged that MIS securities salespersons made unsuitable recommendations of securities offered by Metropolitan Mortgage and Securities Co., Inc. (“Metropolitan”) and Summit Securities, Inc. (“Summit”) to Pacific Northwest investors who were seeking low risk investments to sustain them in their retirement years, thereby improperly concentrating the limited assets of these investors in Metropolitan and Summit. Pursuant to the terms of the Consent Order, Saccomanno agreed to and was ordered to cease and desist from violations of the suitability provision of the Securities Act and was censured by the Division. Saccomanno waived his right to a hearing and further proceedings in the matter.


Metropolitan Investment Securities, Inc. Ronald J. Saccomanno S-04-041-05-C013 - Consent Order

On October 3, 2006, the Securities Division entered into a Consent Order with Randal J. Saccomanno (“Saccomanno”). The Division had entered a Statement of Charges on October 27, 2004 against fifteen former Metropolitan Investment Securities, Inc. (“MIS”) securities salespersons, including Saccomanno. The Division alleged that MIS securities salespersons made unsuitable recommendations of securities offered by Metropolitan Mortgage and Securities Co., Inc. (“Metropolitan”) and Summit Securities, Inc. (“Summit”) to Pacific Northwest investors who were seeking low risk investments to sustain them in their retirement years, thereby improperly concentrating the limited assets of these investors in Metropolitan and Summit. Pursuant to the terms of the Consent Order, Saccomanno agreed to and was ordered to cease and desist from violations of the suitability provision of the Securities Act and was censured by the Division. Saccomanno waived his right to a hearing and further proceedings in the matter.


Wachovia Capital Market, LLC. S-04-142-05-CO01 - Consent Order

On September 15, 2006, the Securities Division entered into a Consent Order, S-04-142-05-CO01, with Wachovia Capital Markets, LLC in connection with a joint settlement with state securities regulators. The settlement concerned conflicts of interest between research analyst and investment banking activities of Wachovia Capital Market, LLC and its predecessors. The Securities Division alleged that Wachovia Capital Markets, LLC had failed to reasonably supervise its research analysts and that it failed to maintain and produce certain required books and records. Wachovia Capital Markets, LLC agreed to cease and desist, in connection with its research practices, from violation of the portion of the Securities Act of Washington requiring broker-dealers to reasonably supervise their employees. Wachovia Capital Markets, LLC agreed to pay to the State of Washington a fine of $363,319 in connection with its failure to supervise and a fine of $29,974 in connection with its failure to maintain and produce required books and records. In addition, Wachovia Capital Markets, LLC agreed to pay $54,498 to be used for investor education. Wachovia Capital Markets, LLC voluntarily waived its rights to a hearing and to judicial review of the Consent Order.


New Method Marketing, Inc., Bruce H. Rogat, Tyler R. Ryder S-06-055-06-FO01 - Final Order

On August 29, 2006, the Securities Division entered a Final Order to Cease and Desist against New Method Marketing, Inc; Bruce H. Rogat; and Tyler R. Ryder; (collectively “Respondents”). The Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist on July 26, 2006. The Division alleged that Respondents offered and/or sold an unregistered business opportunity to Washington residents. New Method Marketing is the seller of a business opportunity to own and operate a dealership that specializes in direct marketing mailers. Respondents did not request a hearing on the Summary Order. Respondents have a right to request judicial review of this matter.


Fran Austin dba Austin & Associates S-06-021-06-FO01 - Final Order

On August 25, 2006, the Securities Division entered a Final Order to Cease and Desist and imposed fines against Fran Austin dba Austin & Associates (“Respondent”). The Division entered a Summary Order and Notice of Intent to Enter an Order to Cease and Desist, Impose Fines and Charge Costs on July 11, 2006. The Division alleged that Respondent raised $96,000 from three Washington State residents in Spokane County by offering and selling unregistered securities in Austin & Associates, an unincorporated Washington company. Respondent solicited investments from his insurance clients and guaranteed investors specific rates of return ranging from 8.75%-11.25%. Respondent proceeded to conduct options trades using investors’ funds and other funds received from investors were used to pay personal expenses. The Securities Division alleged that the Respondent acted as an unregistered broker-dealer and/or securities salesperson. The Division also alleged that the offer and sale of securities by the Respondent violated the anti-fraud provisions of the Securities Act of Washington. Respondent declined to request a hearing on the Statement of Charges. Respondent has a right to request judicial review of this matter.


LionHearted Entertainment, Inc., Mary Ann Heathman, and Kim A. Heathman S-05-201-06-FO01 - Final Order

On August 25, 2006, the Securities Division entered a Final Order against LionHearted Entertainment, Inc. and its principals, Mary Ann and Kim Heathman. The Division found that LionHearted and the Heathmans promised investors returns as high as 500% on promissory notes issued to finance the creation of a film production company. The Heathmans made material misrepresentations concerning their ability to perform, and failed to disclose material financial information about LionHearted. The Final Order enjoins future violations of the Securities Act and orders payment of $15,000 in restitution. LionHearted and the Heathmans have the opportunity to seek judicial review of the Order.


Peter Pintarics and Pan American Global Group, Inc. S-00-023-06-FO02 - Final Order

On August 21, 2006, the Securities Division entered a final order, S-00-023-06-FO02, as to Peter Pintarics and Pan American Global Group, Inc.; both formerly of Bellevue, Washington, in connection with 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 Securities Division alleged that Pintarics and Pan American Global Group, Inc. have each violated the antifraud and registration of securities sections of the Securities Act of Washington. The Respondents have the right to request a judicial review of the Final Order.


SpanishFUN LLC, Robert Lasseter S-06-072-06-FO01 – Final Order

On August 14, 2006, the Securities Division entered a Final Order against Robert Lasseter and SpanishFUN LLC (collectively "Respondents"). The Division entered a Summary Order to cease and desist to the Respondents on July 11, 2006. The franchise opportunity purportedly involves teaching Spanish classes at preschools and child care centers. Respondents offered to sell an unregistered franchise opportunity to a Washington State resident. Respondents failed to disclose material information concerning the franchise opportunity, including the fact that Robert Lasseter, as then-owner of CompuChild USA, Inc., was found liable in 2005 for violating federal franchise laws. The Securities Division ordered Respondents to cease and desist from violating the registration and anti-fraud provisions of the Franchise Investment Protection Act of Washington. Respondents have a right to request judicial review of the Final Order.


Taxi Vision Media, Inc., Ryan C. Gould - S-05-130-06-SC01 - Statement of Charges

On August 8, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Impose Fines and Recover Costs against Taxi Vision Media, Inc. (“Taxi Vision”) and Ryan C. Gould (“Gould”). Taxi Vision, with its principal place of business in Las Vegas, purportedly sold and installed advertising on taxi cabs. The Division alleged that Taxi Vision and Gould offered and sold unregistered investments in Taxi Vision to a Washington state resident. The Division further alleged that the Respondents violated the anti-fraud provisions of the Securities Act of Washington in connection with the offer of Taxi Vision stock. The Respondents have a right to request a hearing in this matter.

This matter was resolved by the entry of a Consent Order on December 18, 2006.


New Method Marketing, Inc., Bruce H. Rogat, Tyler R. Ryder - S-06-055-06-TO01 - Summary Order

On July 26, 2006, the Securities Division entered a Summary Order to Cease and Desist against New Method Marketing, Inc; Bruce H. Rogat; and Tyler R. Ryder (collectively “Respondents”). The Statement of Charges alleges that Respondents offered and/or sold an unregistered business opportunity to Washington residents. New Method Marketing is the seller of a business opportunity to own and operate a dealership that specializes in direct marketing mailers. The Securities Division ordered Respondents to cease and desist from violating the registration provision of the Business Opportunity Fraud Act of Washington. Respondents have a right to request a hearing on the Summary Order.

This matter was resolved by the entry of a Final Order on August 29, 2006.


Hope Investments, Inc. – S-05-158-06-FO01 – Final Order

On July 24, 2006, the Securities Division entered a Final Order to Cease and Desist against Hope Investments, Inc. (“Hope”). The Order resolves, as to Hope, a Statement of Charges entered June 19, 2006, against Hope and its principals, Thomas A. Welter of Federal Way and Michael J. Inman of Colville. The Division found that from 1997 through 2003, Hope falsely promised investors high-yield returns from investments in gold-backed historical railroad bonds. In addition to misrepresenting the investment value of the bonds, Hope was found to have knowingly failed to disclose that the price and investment valuation of the bonds were misleading, and that there were no bond redemption programs that would generate the promised returns. Hope was found to have violated the anti-fraud and registration provisions of the Securities Act, and enjoined from future violations of the Act. Hope may seek judicial review of this matter. Mr. Inman settled this matter by way of a Consent Order. Mr. Welter has requested an adjudicative hearing in the matter, and the proceeding against him is continuing


Michael J. Inman - S-05-158-06-CO01 - Consent Order

On July 24, 2006, the Securities Division entered into a Consent Order to Cease and Desist with Michael J. Inman (“Inman”). The Order resolves, as to Inman, a Statement of Charges entered June 19, 2006, against Hope Investments, Inc. and its principals, Thomas A. Welter of Federal Way and Michael J. Inman of Colville. The Division found that from 1997 through 2003, Hope Investments falsely promised investors high-yield returns from investments in gold-backed historical railroad bonds. In addition to misrepresenting the investment value of the bonds, Inman was found to have knowingly failed to disclose that the price and investment valuation of the bonds were misleading, and that there were no bond redemption programs that would generate the promised returns. Inman was found to have violated the anti-fraud and registration provisions of the Securities Act, and has been enjoined from future violations of the Act. Inman waived his right to a hearing and judicial review of this matter. Mr. Welter has requested an adjudicative hearing in the matter, and the proceeding against him is continuing.

View the Final Order entered July 24, 2006 against Hope Investments, Inc.


The Cure Service Group, Inc. - S-06-074-06-CO01 - Consent Order

On July 17, 2006, the Securities Division entered into a Consent Order with the Respondents, The Cure Service Group, Inc. dba 1-800-WATER DAMAGE, Lisa Bongi, and Rick Stonell. The Division alleged that the Respondents failed to disclose material information regarding the company in its Uniform Franchise Offering Circular. The Cure Service Group sells a franchise opportunity to own and operate a water damage restoration business under the trade name, 1-800-WATER DAMAGE. The company is located in King County and sold to a resident in Clark County, Washington. The Respondents agreed to cease and desist from any violation of the Franchise Investment Protection Act. The Respondents have paid investigative costs of $650. The Respondents waived their rights to a hearing and judicial review.


Fran Austin dba Austin & Associates S-06-021-06-TO01 - Summary Order

On July 11, 2006, the Securities Division entered a Summary Order to Cease and Desist and Notice of Intent to Impose Fines and Charge Costs against Fran Austin dba Austin & Associates (“Respondent”). The Summary Order alleges that Respondent raised $96,000 from three Washington State residents in Spokane County by offering and selling unregistered securities in Austin & Associates, an unincorporated Washington company. Respondent solicited investments from his insurance clients and guaranteed investors specific rates of return ranging from 8.75% to 11.25%. Respondent proceeded to conduct options trades using investor’s funds and other funds received from investors were used to pay personal expenses. The Securities Division alleged that the Respondent acted as an unregistered broker-dealer or securities salesperson. The Division also alleged that the offer and sale of securities by the Respondent violated the anti-fraud provisions of the Securities Act of Washington. The Securities Division ordered Respondent 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 Summary Order.

This matter was resolved by the entry of a Final Order on August 25, 2006.


Robert Lasseter, SpanishFUN LLC - S-06-072-06-TO01 - Summary Order

On July 11, 2006, the Securities Division entered a Summary Order against Robert Lasseter and SpanishFUN LLC (collectively "Respondents"). The Respondents advertise on the internet a franchise opportunity that involves teaching Spanish classes at preschools and child care centers. The Summary Order alleges that Respondents offered to sell an unregistered franchise opportunity to a Washington State resident. The Summary Order further alleges that Respondents failed to disclose material information concerning the franchise opportunity, including the fact that Robert Lasseter, as then-owner of CompuChild USA, Inc., was found liable in 2005 for violating federal franchise laws. The Securities Division ordered Respondents to cease and desist from violating the registration and anti-fraud provisions of the Franchise Investment Protection Act of Washington. Respondents have a right to request a hearing.

View the Final Order entered August 14, 2006 against Robert Lasseter and SpanishFUN LLC.


Cardinal Capital Management, Inc., Cardinal Capital.Net, Inc. and Alexi Bethel - S-05-081-06-FO01 - Final Order

On July 7, 2006 the Securities Division entered a Final Order as to Alexi Bethel ("Bethel"). The Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist and Notice of Intent to Deny Future Application against Alexi Bethel and Impose Fines against Cardinal Capital Management, Inc., Cardinal Capital.Net, Inc. on June 7, 2006. The Division alleged that the Respondent failed to disclose material information about Cardinal Capital.Net, Inc. stock sold to a Washington state resident. The Division ordered Bethel to cease and desist from violations of the registration, anti-fraud and suitability provisions of the Securities Act. Bethel’s future application with the Securities Division is denied and Bethel is subject to a $5,000 fine. The Respondent has the right to request a judicial review of the Final Order. The charges against Cardinal Capital Management, Inc. and Cardinal Capital.Net, Inc. are still pending.

This order was vacated as to Alexi Bethel by the entry of a Consent Order on July 30, 2007.


Michael Ward - S-05-152-06-CO02 - Consent Order

On July 7, 2006, the Division entered into a Consent Order with Michael Ward resolving, as to Ward, a Statement of Charges filed on February 7, 2006 against Respondents, Trivista Development Corporation, Trivista Financial Services, LLC, Dennis Ziegler, Roger Dennis Kimble, Chuck Methvin, and Michael Ward. The Division alleged that Ward violated the registration and the anti-fraud provisions of the Securities Act by offering and selling unregistered securities and failing to disclose material facts in connection with the offer and sale of securities. Pursuant to the terms of the Consent Order, Ward was ordered to cease and desist from violating the Securities Act. Ward was also permanently barred from being licensed as a securities professional in the state of Washington. As a part of the Order, Ward agreed to pay $1,000 in costs. Ward waived his right to a hearing and further proceedings in the matter.


Resource Development International, Earl Hubert Dangelmaier – S-00-050-05-CO09 – Consent Order

On July 7, 2006, the Securities Division entered a Consent Order with former Resource Development International LLC ("RDI") securities salesperson Earl Hubert Dangelmaier ("Dangelmaier") settling charges that Dangelmaier allegedly, as an unregistered securities salesperson, offered or sold unregistered securities in the form of RDI prime bank notes. The Division also alleged that Dangelmaier omitted material facts in the offer and sale of the RDI prime bank notes. Dangelmaier neither admits nor denies the facts alleged. Pursuant to the terms of the Consent Order, Dangelmaier was ordered to cease and desist from violating the registration and anti-fraud provisions of the Securities Act. Dangelmaier was also permanently barred from being licensed as a securities professional in the state of Washington. Dangelmaier waived his right to a hearing and further proceedings in this matter.

View the Statement of Charges entered April 14, 2005 against Respondent, Earl Hubert Dangelmaier.


James W. King - S-05-119-06-SC01 - Statement of Charges

On July 7, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist and to Impose Fines and Costs (“Statement of Charges”) against James W. King (“Respondent”). The Statement of Charges alleges that Respondent raised $189,500 from seven Washington State residents by offering and selling gold, gold coins, silver, and unregistered securities. The investors resided in King and Whitman counties. The Statement of Charges further alleges that Respondent violated the registration and anti-fraud provisions of the Commodity Transactions Act of Washington and the Securities Act of Washington in connection with the offer and sale of such gold, gold coins, silver, and securities. The Securities Division ordered Respondent to cease and desist from violating the registration and anti-fraud provisions of the Commodity Transactions Act of Washington and the Securities Act of Washington. The Securities Division gave notice of its intent to collect fines and costs. Respondent has a right to request a hearing on the Statement of Charges.


Beyond Juice Corporation and Beyond Juice, LLC - S-04-211-06-CO01 - Consent Order

On July 5, 2006, the Securities Division entered into a Consent Order with Respondents, Beyond Juice Corporation and Beyond Juice LLC (the companies). The Division alleged that companies offered unregistered franchises in the State of Washington. The franchise involved the operation of a retail restaurant in which coffee, blended juice drinks, salads, health supplements, and healthy sandwiches are sold. The companies agreed to cease and desist from any violation of the Franchise Investment Protection Act. The companies paid investigative costs of $1,500. The Respondents waived their right to a hearing and judicial review of the matter.

View the Statement of Charges entered December 16, 2005 against Respondents, Beyond Juice Corporation and Beyond Juice, LLC.


Pacific Coast Investment Company - S-06-121-06-TO01 – Summary Order

On June 28, 2006, the Securities Division entered a Stop Order Suspending Securities Registration and Denying Re-Registration, Summary Order Suspending and Denying Broker-Dealer and Salesperson Registration, and Summary Order Revoking Exemptions against Pacific Coast Investment Company (PCIC) and Raymundo Salgado. The Division alleged that PCIC, principally located in Seattle, has not filed complete information in connection with its mortgage broker-dealer registration applications, recommended that investors sell property without required disclosures, and made materially false or misleading statements or omissions to investors regarding security interests, property values, borrower credit and financial information, and other matters. The Division denied PCIC’s applications to renew its securities, broker-dealer, and sales agent registrations; summarily suspended these current registrations; and revoked PCIC’s ability to use certain exemptions from securities registration. PCIC has the right to request a hearing in this matter.

This order was amended November 9, 2006 by entry of S-06-121-06-TO02 - amended summary order.


North American Resource Group, Inc., Southeastern Energy, Inc., Falling Waters Prospect, Southeastern Buck Mountain Prospect, Southeastern Caney Creek Prospect, Huddleston Annex Prospect, Stephens Prospect, Gilreath Mill Prospect, G. Alan Murrell, Thomas Emberton, Jr. and Doug Smith S-05-113-06-FO01 - Final Order

On June 27, 2006, the Securities Division entered a Final Order to Cease and Desist and imposed fines against North American Resource Group, Inc.; Southeastern Energy, Inc.; Falling Waters Prospect; Southeastern Buck Mountain Prospect; Southeastern Caney Creek Prospect; Huddleston Annex Prospect; Stephens Prospect; Gilreath Mill Prospect; G. Alan Murrell; Thomas Emberton, Jr.; and Doug Smith; (collectively “Respondents”). The Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist, Impose Fines and Charge Costs on May 23, 2006. The Division alleged Respondents raised $226,500 from eleven Washington State residents by offering and selling unregistered interests in an oil and gas drilling project. The investors resided in King, Pierce and Grays Harbor counties. The Division further alleged Respondents violated the anti-fraud provisions of the Securities Act of Washington in connection with the offer and sale of such securities. Respondents failed to request a hearing on the Statement of Charges. Respondents have a right to request judicial review of this matter.

This matter was vacated by the entry of a Consent Order on November 13, 2006.


Hope Investments, Inc., Thomas Alan Welter and Michael J Inman - S-05-158-06-SC01 – Statement of Charges

On June 19, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist, Order Restitution, Impose Fines, and Charge Costs against Hope Investments, Inc. and its principals, Thomas A. Welter of Federal Way and Michael J. Inman of Colville (collectively, “Respondents”). The Division alleges that the Respondents promised investors high-yield returns from investments in gold-backed historical railroad bonds. The Respondents are charged with making material misrepresentations concerning the price and value of the railroad bonds, the availability of bond prime bank bond redemption programs, and with failing to disclose material information about Hope Investments. The Statement of Charges seeks an injunction enjoining future violations of the Securities Act, and notifies the Respondents of the Division’s intent to order restitution, impose fines, and charge costs. Hope Investments, Mr. Welter, and Mr. Inman will all have the opportunity for a hearing on this matter.

This matter was resolved as to Michael Inman by entry of a Consent Order on July 24, 2006.

This matter was resolved as to Thomas Welter by entry of a Final Order on October 23, 2006.


Alternative Capital, L.L.C.; Bradford Vorhees - S-05-236-06-SC01 - Statement of Charges

On June 19, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist, Impose Fines and Costs, and to Deny Registration (“Statement of Charges”) against Alternative Capital, L.L.C. and Bradford Vorhees (collectively “Respondents”). The Statement of Charges alleges that despite failing to renew their investment adviser and investment adviser representative registration in 2005, Respondents managed a hedge fund and conducted trades in the hedge fund’s brokerage account for compensation. In addition, the Statement of Charges alleged that Respondents failed to disclose to the Securities Division that they had custody over client funds or securities and failed to maintain the minimum net worth requirements or be bonded for the amount of the deficiency while having custody over client funds or securities. The Securities Division gave notice of its intent to collect fines and costs and deny future registration. Respondents have a right to request a hearing on the Statement of Charges.


Designer Handscapes, Inc. John Benton - S-06-056-06-CO01 - Consent Order

On June 14, 2006, the Securities Division entered into a Consent Order with the Respondents, Designer Hardscapes, Inc. and John Benton. The Division alleged that the Respondents offered unregistered business opportunities in the State of Washington. The business opportunity involved the operation of a dealership that specializes in the sale and installation of decorative paving stones. The Respondents agreed to cease and desist from any violation of the Business Opportunity Fraud Act. The Respondents have paid investigative costs of $500. The Respondents waived their rights to judicial review of this matter.


Resource Development International, Richard Albert Labadie - S-00-050-05-CO08 - Consent Order

On June 14, 2006, the Securities Division entered a Consent Order with former Resource Development International LLC (“RDI”) securities salesperson Richard Albert Labadie (“Labadie”) settling charges that Labadie allegedly, as an unregistered securities salesperson, offered or sold unregistered securities in the form of RDI prime bank notes. The Division also alleged that Labadie omitted material facts in the offer and sale of the RDI prime bank notes. Labadie neither admits nor denies the facts alleged. Pursuant to the terms of the Consent Order, Labadie was ordered to cease and desist from violating the registration and anti-fraud provisions of the Securities Act. Labadie was also permanently barred from being licensed as a securities professional in the state of Washington. Labadie waived his right to a hearing and further proceedings in this matter.

View the Statement of Charges entered April 14, 2005 against former Resource Development International LLC securities salesperson Richard Albert Labadie.


Cardinal Capital Management, Inc., Cardinal Capital.Net, Inc. and Alexi Bethel - S-05-081-06-SC01 - Statement of Charges

On June 7, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist and Notice of Intent to Deny Future Application of Alexi Bethel and Impose Fines against Cardinal Capital Management, Inc., Cardinal Capital.Net, Inc. and Alexi Bethel (“Bethel”). The Division alleged that the Respondents failed to disclose material information about Cardinal Capital.Net, Inc. stock sold to a Washington state resident. The Division further alleged that that stock was recommended without reasonable grounds to believe the transaction was suitable for the Washington state resident and that Bethel effected transactions in the Washington state resident’s account that were excessive in size and frequency in view of the financial resources of the account. The Respondents have a right to request a hearing in this matter.

This matter was resolved by the entry of a Final Order on July 7, 2006.


The Dale Group dba Blind Brokers Network dba Blind Butler - S-05-240-06-CO01 - Consent Order

On June 5, 2006, the Securities Division entered into a Consent Order with Respondent, The Dale Group dba Blind Brokers Network dba Blind Butler. The Division alleged that Respondent offered and sold unregistered business opportunities in the State of Washington. The business opportunity involved the operation of window blind cleaning and/or installation services. The Respondent agreed to cease and desist from any violation of the Business Opportunity Fraud Act. The Respondent has paid investigative costs of $500. The Respondent waived its right to judicial review.


Susan Edwards - S-06-092-06-CO01 - Consent Order

On June 5, 2006, the Securities Division entered a Consent Order with Respondent, Susan Edwards. The Division alleged that Susan Edwards, while acting as a licensed Designated Escrow Officer, electronically "cut and pasted" a signature from one document to another with the intent to use the document in the closing process in violation of the prohibited practices section of the Escrow Agent Registration Act. Respondent, Susan Edwards, neither admitted nor denied the violations. Respondent agreed to cease and desist from any violations of the prohibited practice section of the Escrow Agent Registration Act. Respondent also agreed to a six month temporary suspension from participating in the conduct of the affairs of any escrow agent subject to the provisions of the Escrow Agent Registration Act and to pay investigative costs of $500. Respondent waived her right to a hearing in this matter and to judicial review of the order.


Roger Dennis Kimble - S-05-152-06-CO03- Consent Order

On June 5, 2006, the Division entered into a Consent Order with Roger Dennis Kimble resolving, as to Kimble, a Statement of Charges filed on February 7, 2006 against Respondents, Trivista Development Corporation, Trivista Financial Services, LLC, Dennis Ziegler, Roger Dennis Kimble, Chuck Methvin, and Michael Ward. The Division alleged that Kimble violated the registration and/or anti-fraud provisions of the Securities Act by offering and selling unregistered securities and/or failing to disclose material facts in connection with the offer and sale of securities. Pursuant to the terms of the Consent Order, Kimble was ordered to cease and desist from violating the Securities Act. As a part of the Order, Kimble agreed to pay $1,000 in costs. Kimble waived his right to a hearing and further proceedings in the matter.


North American Resource Group, Inc., Southeastern Energy, Inc., Falling Waters Prospect, Southeastern Buck Mountain Prospect, Southeastern Caney Creek Prospect, Huddleston Annex Prospect, Stephens Prospect, Gilreath Mill Prospect, G. Alan Murrell, Thomas Emberton, Jr. and Doug Smith - S-05-113-06-SC01 - Statement of Charges

On May 23, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist and to Impose fines against North American Resource Group, Inc.; Southeastern Energy, Inc.; Falling Waters Prospect; Southeastern Buck Mountain Prospect; Southeastern Caney Creek Prospect; Huddleston Annex Prospect; Stephens Prospect; Gilreath Mill Prospect; G. Alan Murrell; Thomas Emberton, Jr.; and Doug Smith (collectively “Respondents”). The Statement of Charges alleges that Respondents raised $226,500 from eleven Washington State residents by offering and selling unregistered interests in an oil and gas drilling project. The investors resided in King, Pierce and Grays Harbor counties. The Statement of Charges further alleges that Respondents violated the anti-fraud provisions of the Securities Act of Washington in connection with the offer and sale of such securities. The Securities Division ordered Respondents to cease and desist from violating the securities 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.

This matter was vacated by the entry of a Consent Order on November 13, 2006.


Luz Valdez and The Sovereign Enterprise – S-03-002-03-CO01 – Consent Order

On May 22, 2006, the Securities Division entered a Consent Order with Respondents, Luz Valdez and The Sovereign Enterprise, vacating as to Luz Valdez and The Sovereign Enterprise the “ Amended Summary Order ” to Cease and Desist and Notice of Intent to Impose Fines and Order Affirmative Relief entered on January 26, 2004. The Division alleged, in part, that from at least June 2000 through May 2001, the Respondents offered and sold securities and offered investment advice and services for a fee to at least 23 investors, raising over $2.9 million. Respondents solicited investments and then began to conduct high volume day trading using investor’s funds. Other funds received from investors were used to pay business expenses, salaries and personal expenses. The Securities Division alleged that the Respondents acted as unregistered investment advisers, investment adviser representatives, broker-dealers and/or securities salespersons. The Division also alleged that the offer and sale of securities by Respondents violated the anti-fraud provisions of the Securities Act of Washington. Respondents, Luz Valdez and The Sovereign Enterprise, neither admitted nor denied the violations. Respondents agreed to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act and to pay costs of $1,000. The Respondents waived their rights to a hearing in this matter and to judicial review of the order.


Steven Richardson - S-05-092-05-CO01 - Consent Order

On May 19, 2006, the Securities Division entered into a Consent Order with Respondent, Steven Richardson. The Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Deny Securities Salesperson Registration and Impose Fines and Costs on October 24, 2005, alleging that the Respondent violated RCW 21.20.010 and RCW 21.20.110 when he told an investor residing in Thurston County that he would invest the investor’s funds in a mutual fund and instead used the investor’s money to purchase shares of start-up and other high risk companies. In the Consent Order, Respondent neither admitted nor denied the allegations in the Statement of Charges. Respondent agreed to not apply for a securities salesperson license for ten years, paid a fine of $2,700, and waived his right to a hearing and judicial review of the matter. In addition, Respondent repaid the investor.


Tri Energy, Inc., H & J Energy Company, Inc., Marina Investors Group, Thomas Avery, Lowell Decker, Robert Jennings, Henry Jones, Arthur Simburg, Mildred Stultz and Ronald Stultz – S-04-181-05-CO01 – Consent Order

On May 18, 2006, the Securities Division entered into a Consent Order with Respondent Mildred Stultz to settle alleged violations of the registration and anti-fraud provisions of the Washington State Securities Act. The Summary Order (S-04-181-05-TO01) to Cease and Desist entered on February 28, 2005 against Mildred Stultz, as well as, Tri Energy, Inc., H & J Energy Company, Inc., Marina Investors Group, Thomas Avery, Lowell Decker, Robert Jennings, Henry Jones, Arthur Simburg and Ronald Stultz alleged that from September 2003 and continuing through January 2005 Thomas Avery, Lowell Decker, Robert Jennings, Henry Jones, Arthur Simburg, Mildred Stultz and Ronald Stultz, solicited and aided in the solicitation of investors for a investments in Tri Energy, Inc., H & J Energy Company, Inc. and Marina Investors Group. The Division further alleged in the Summary Order that many investors believed that they were investing in the coal mining operations of Tri Energy, Inc. and H & J Energy Company, Inc. to which they could double their money in 90 days or invest in a gold transaction between Israel and Dubai to which they could triple their money in 90 days. In settling, Mildred Stultz neither admitted nor denied the violations and agreed to cease and desist from violating the registration and anti-fraud provisions of the Securities Act. The Respondent has waived her right to a hearing in this matter.


Tri Energy, Inc., H & J Energy Company, Inc., Marina Investors Group, Thomas Avery, Lowell Decker, Robert Jennings, Henry Jones, Arthur Simburg, Mildred Stultz and Ronald Stultz – S-04-181-05-CO02 – Consent Order

On May 18, 2006 , the Securities Division entered into a Consent Order with Respondent Ronald Stultz to settle alleged violations of the registration and anti-fraud provisions of the Washington State Securities Act. The Summary Order (S-04-181-05-TO01) to Cease and Desist entered on February 28, 2005 against Ronald Stultz, as well as, Tri Energy, Inc., H & J Energy Company, Inc., Marina Investors Group, Thomas Avery, Lowell Decker, Robert Jennings, Henry Jones, Arthur Simburg and Ronald Stultz alleged that from September 2003 and continuing through January 2005 Thomas Avery, Lowell Decker, Robert Jennings, Henry Jones, Arthur Simburg, and Mildred Stultz, solicited and aided in the solicitation of investors for a investments in Tri Energy, Inc., H & J Energy Company, Inc. and Marina Investors Group. The Division further alleged in the Summary Order that many investors believed that they were investing in the coal mining operations of Tri Energy, Inc. and H & J Energy Company, Inc. to which they could double their money in 90 days or invest in a gold transaction between Israel and Dubai to which they could triple their money in 90 days. In settling, Ronald Stultz neither admitted nor denied the violations and agreed to cease and desist from violating the registration and anti-fraud provisions of the Securities Act. The Respondent has waived his right to a hearing in this matter.


Tri Energy, Inc., H & J Energy Company, Inc., Marina Investors Group, Thomas Avery, Lowell Decker, Robert Jennings, Henry Jones, Arthur Simburg, Mildred Stultz and Ronald Stultz – S-04-181-05-CO03 – Consent Order

On May 18, 2006, the Securities Division entered into a Consent Order with Respondent Lowell Decker to settle alleged violations of the registration and anti-fraud provisions of the Washington State Securities Act. The Summary Order (S-04-181-05-TO01) to Cease and Desist entered on February 28, 2005, against Lowell Decker, as well as, Tri Energy, Inc., H & J Energy Company, Inc., Marina Investors Group, Thomas Avery, Robert Jennings, Henry Jones, Arthur Simburg, Mildred Stulrz and Ronald Stultz alleged that from September 2003 and continuing through January 2005 Thomas Avery, Lowell Decker, Robert Jennings, Henry Jones, Arthur Simburg, Mildred Stultz and Ronald Stultz, solicited and aided in the solicitation of investors for a investments in Tri Energy, Inc., H & J Energy Company, Inc. and Marina Investors Group. The Division further alleged in the Summary Order that many investors believed that they were investing in the coal mining operations of Tri Energy, Inc. and H & J Energy Company, Inc. to which they could double their money in 90 days or invest in a gold transaction between Israel and Dubai to which they could triple their money in 90 days. In settling, Lowell Decker neither admitted nor denied the violations and agreed to cease and desist from violating the registration and anti-fraud provisions of the Securities Act. The Respondent has waived his right to a hearing in this matter.


James D. David - S-06-038-06-CO01 - Consent Order

On May 18, 2006 the Securities Division entered into a Consent Order with James D. David (“David”). The Consent Order resolves an action filed on March 6, 2006 against David. The Division alleged that David failed to disclose on his Form U-4 a bankruptcy petition causing his securities salesperson application to contain a false statement. As a part of the Consent Order David paid $500 in fines. David waived his right to a hearing and further proceedings in the matter.


Smart Advertising, Inc. and Brad Lober S-05-043-06-FO01 - Final Order

On May 18, 2006, the Securities Division entered a Final Order against Smart Advertising, Inc.; and Brad Lober (collectively "Respondents"). The Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist on April 4, 2006. Respondents offered and sold unregistered business opportunities to at least three Washington residents. The business opportunity involved the sale of a marketing plan and website which sells third party products. The investors resided in Pierce and Snohomish counties. Respondents also violated the disclosure document and anti-fraud provisions of the Business Opportunity Fraud Act of Washington in connection with the offer and sale of such business opportunities. The Securities Division ordered Respondents to cease and desist from violating the registration, disclosure and anti-fraud provisions of the Business Opportunity Fraud Act of Washington. Respondents have a right to request judicial review of this matter.


A Nanny On the Net, LLC, Amy C. Hardison - S-05-248-06-CO01 - Consent Order

On May 17, 2006, the Securities Division entered into a Consent Order with Respondents, A Nanny On the Net LLC and Amy C. Hardison (collectively “Respondents”). The Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist against Hardison on March 15, 2006. The Respondents, who advertise franchise opportunities on their website, offered and sold an unregistered franchise in the State of Washington. The purchaser of the opportunity resides in Clark County. The franchise involves the operation of an online nanny placement service. The order directs the Respondents to cease and desist from any violation of the Franchise Investment Protection Act. The Respondents have paid investigative costs of $600. The Respondents each waived their right to judicial review.


Chuck Methvin S-05-024-06-CO01 - Consent Order

On May 3, 2006, the Division entered into a Consent Order with Chuck Methvin resolving, as to Methvin, a Statement of Charges filed on February 7, 2006 against Respondents, Trivista Development Corporation, Trivista Financial Services, LLC, Dennis Ziegler, Roger Dennis Kimble, Chuck Methvin, and Michael Ward. Respondents were involved in raising money for real estate development. The Division alleged that Methvin violated the registration and/or anti-fraud provisions of the Securities Act by offering and selling unregistered securities and/or failing to disclose material facts in connection with the offer and sale of securities. Pursuant to the terms of the Consent Order, Methvin was ordered to cease and desist from violating the Securities Act. As a part of the Order, Methvin agreed to pay $1,000 in fines and $1,500 in costs. Methvin waived his right to a hearing and further proceedings in the matter.


Kimberly J. Boyce - S-05-024-06-FO01 - Final Order

On May 3, 2006, the Securities Division entered a Final Order against Kimberly J. Boyce (“Boyce”). The Division entered a Statement of Charges and Notice of Intent to Deny Future Securities Salesperson Registration against Boyce on March 22, 2006. Boyce, while working for a brokerage firm, took money from a client’s account for personal use in the form of checks and internet withdrawals without the client’s knowledge or consent. Boyce also engaged in dishonest or unethical business practices in the securities business by affixing or causing to be affixed the client’s signature as an endorsement without the knowledge or consent of the client. In the Final Order Boyce’s future securities salesperson registration will be denied. The Respondent has the right to request a judicial review of the Final Order.


Family First Advanced Estate Planning and Family First Insurance Services - S-02-343-05-CO01 - Consent Order

On April 21, 2006, the Securities Division entered a Consent Order with Respondents, Family First Advanced Estate Planning and Family First Insurance Services. The Respondents, based in Woodland Hills, California, offered and sold living trusts and fixed annuities to elderly clients in the State of Washington. In order to purchase the products, the clients were induced to liquidate securities portfolios. The Order directs the Respondents to cease and desist from any violation of the Washington Securities Act anti-fraud provisions. The Respondents, who have ceased doing business in Washington, also paid a fine, jointly and severally, of $30,000 and investigative costs of $20,000. The Respondents each waived their right to judicial review.


Gary D. Lee - S-05-220-06-CO01 - Consent Order

On April 19, 2006, the Securities Division entered into a Consent Order with Gary D. Lee (“Lee”). The Consent Order resolves an action filed on January 23, 2006, against Beerbaum & Beerbaum Financial and Insurance Services, Inc. and Lee. The Division alleged that Lee was acting as a securities salesperson and investment adviser in Washington State without being registered to do so. Pursuant to the terms of the Consent Order, Lee was ordered to cease and desist from acting as a securities salesperson and investment adviser in Washington State without being registered. As a part of the Order, Lee agreed to pay $5,000 in fines and $2,500 in costs. Lee may apply for registration with the Securities Division; though his registration is subject to certain conditions. Lee waived his right to a hearing and further proceedings in the matter.


Smart Advertising, Inc., Jeffery Farmer, Brad Lober - S-05-043-06-SC01 - Statement of Charges

On April 4, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist against Smart Advertising, Inc.; Jeffery Farmer; and Brad Lober (collectively “Respondents”). The Statement of Charges alleges that Respondents offered and sold unregistered business opportunities to at least three Washington residents. The business opportunity involves the sale of a marketing plan and website which sells third party products. The investors resided in Pierce and Snohomish counties. The Statement of Charges further alleges that Respondents violated the disclosure document and anti-fraud provisions of the Business Opportunity Fraud Act of Washington in connection with the offer and sale of such business opportunities. The Securities Division intends to order Respondents to cease and desist from violating the registration, disclosure and anti-fraud provisions of the Business Opportunity Fraud Act of Washington. Respondents have a right to request a hearing on the Statement of Charges. This matter was resolved by the entry of a Final Order on May 18, 2006.


Kimberly J. Boyce – S-05-024-06-SCO1 – Statement of Charges

On March 22, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Deny Future Securities Salesperson Registration against Kimberly J. Boyce (“Boyce”). The Division alleged that Boyce, while working for a brokerage firm, took money from a client’s account for personal use in the form of checks and internet withdrawals without the client’s knowledge or consent. The Division further alleged that the Respondent engaged in dishonest or unethical business practices in the securities business by affixing or causing to be affixed the client’s signature as an endorsement without the knowledge or consent of the client. The Respondent has a right to request a hearing in this matter. This matter was resolved by the entry of a Final Order on May 3, 2006


Northwest Financial Group, Timothy Morris – S-05-136-06-SC01 – Statement of Charges

On March 15, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Deny Registration, and to Impose Fines and Costs (“Statement of Charges”) against Northwest Financial Group and Timothy Morris (collectively “Respondents”). The Statement of Charges alleges that Respondents raised $150,000 from one Washington State resident by offering and selling an unregistered investment purportedly in promissory notes secured by real estate. The investor resided in King County. The Statement of Charges further alleges that Respondents violated the broker-dealer registration and anti-fraud provisions of the Securities Act of Washington in connection with the offer and sale of such securities. The Statement of Charges further alleges that instead of using the money for promissory notes secured by real estate the money was used for personal projects such as purchasing helicopter parts. The Securities Division ordered Respondents to cease and desist from violating the securities registration and anti-fraud provisions of the Securities Act of Washington. The Securities Division gave notice of its intent to impose and collect fines and costs. Respondents have a right to request a hearing on the Statement of Charges.

This matter was resolved by the entry of a Final Order on February 28, 2007


A Nanny On the Net, LLC, Amy C. Hardison – S-05-248-06-SC01 – Statement of Charges

On March 15, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist against A Nanny On the Net LLC and Amy C. Hardison (collectively “Respondents”). The Statement of Charges alleges that the Respondents, who advertise franchise opportunities on their website, offered and sold an unregistered franchise in the state of Washington. A Nanny On the Net is a limited liability company organized and doing business in the State of Virginia. The purchaser of the opportunity resides in Clark County. The franchise involves the operation of an online nanny placement service. The Respondents have the right to request a hearing on the Statement of Charges. This matter was resolved by the entry of a Final Order on May 17, 2006.


AminoPath Labs, LLC – S-04-244-05-SC01 – Statement of Charges

On March 15, 2006, the Securities Division entered a Statement of Charges and Notice of Intent Impose Fines and Costs against AminoPath Labs, LLC, (“Respondent”). Respondent is an Oregon limited liability company and describes itself as a science based nutraceutical company. The Statement of Charges alleges that Respondent raised at least $331,000 from seven investors by offering and selling 14% convertible promissory notes (“Notes”). At least six of the investors were residents of King County. The Statement of Charges further alleges that Respondent violated the registration provisions of the Securities Act of Washington in connection with the offer and sale of such securities by failing to disclose the person who received a commission, fee, or other remuneration for solicitation of the investments. The Securities Division ordered Respondent to cease and desist from violating the securities registration and anti-fraud provisions of the Securities Act of Washington. The Securities Division gave notice of its intent to collect fines and costs. Respondent has a right to request a hearing on the Statement of Charges.

This order was vacated by the entry of a Consent Order on December 11, 2006.


Dennis Ziegler - S-05-152-06-FO01 - Final Order

On March 8, 2006, the Securities Division entered a Final Order against Respondent, Dennis Ziegler. The Division entered a Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist, Impose Fines, and Charge Costs on February 7, 2006. Respondent, Ziegler, violated the registration and/or anti-fraud provisions of the Securities Act by offering and selling unregistered securities and/or failing to disclose material facts in connection with the offer and sale of securities. The investment money was purportedly raised for real estate development projects, including the development of time-share condos on a golf course in Clark County, Nevada. The Securities Division ordered Respondent, Ziegler, to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act of Washington, as well as to pay $10,000 in fines and $1,000 in costs. Respondent, Dennis Ziegler, has a right to request judicial review of this matter.


Bright Star Energy Project #1, LLC, Bright Star Energy, Inc., Peter Ragucci, Don Vincent - S-05-023-06-SC01 - Statement of Charges

On March 6, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Deny Registration, and to Impose Fines and Costs (“Statement of Charges”) against Bright Star Energy, Inc.; Bright Star Energy Project #1, LLC; Peter Ragucci; and Don Vincent (collectively “Respondents”). The Statement of Charges alleges that Respondents raised $30,000 from two Washington State residents by offering and selling unregistered interests in an oil and gas drilling project, purportedly in West Virginia. The investors resided in Skagit and Benton counties. Respondents may have received as much as $442,000 from investors throughout the United States. The Statement of Charges further alleges that Respondents violated the registration and anti-fraud provisions of the Securities Act of Washington in connection with the offer and sale of such securities. The Securities Division ordered Respondents to cease and desist from violating the securities registration and anti-fraud provisions of the Securities Act of Washington. The Securities Division gave notice of its intent to collect fines and costs. Respondents have a right to request a hearing on the Statement of Charges.


James D. David - S-06-038-06-SC01 - Statement of Charges

On March 6, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Suspend Securities Salesperson Registration and Impose Fines against James D. David (“David”). The Division alleged that David failed to disclose on his Form U-4 a bankruptcy petition causing his securities salesperson application to contain a false statement. The Respondent has a right to request a hearing in this matter. This matter was resolved by the entry of a Consent Order on May 18, 2006.


Delaware Investments, Inc., and Charles C. Park - S-04-256-06-CO01 - Consent Order

On March 3, 2006, the Securities Division entered a Consent Order with Respondents, Delaware Investments, Inc., and Charles C. Park, to settle alleged violations of the registration and anti-fraud provisions of the Washington State Securities Act. In the Statement of Charges entered January 31, 2005, the Division alleged that Delaware Investments, Inc., and Charles C. Park offered or sold these securities without the benefit of registration and violated the anti-fraud provision in connection with the sale of promissory notes to at least 2 Washington investors for at least $295,000. Respondents, Delaware Investments, Inc. and Charles C. Park, neither admitted nor denied the violations. Respondents agreed to permanently cease and desist from violations of the registration and anti-fraud provisions of the Securities Act, to pay a fine of $20,000, and to pay costs of $1,500. The Respondents waived their rights to a hearing in this matter and to judicial review of the order.


Professional Traders Fund, LLC; Marc Swickle; Howard Berger; DirectNet LLC; David Babich; - S-03-146-05-SC01 - Statement of Charges

After an adjudicative hearing, the Securities Division entered a Stipulation and Order of Dismissal on July 24, 2007 as to Professional Traders Fund, LLC; Marc Swickle; and Howard Berger.

On February 27, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist and Notice of Intent to Recover Costs against Professional Traders Fund, LLC (”PTF”); Marc Swickle (”Swickle”); Howard Berger (”Berger”); DirectNet LLC (”DirectNet”); and David Babich (“Babich”). The Division alleged that PTF, utilizing DirectNet, sold unregistered securities to twelve Washington state residents. The investors entered into profit sharing agreements with PTF to trade for PTF. To enter into the agreement investors were required to invest money in PTF, which it called a deposit. Fees and/or expenses and net losses were deducted from the deposit. The Division further alleged that the Respondents violated the anti-fraud provisions of the Securities Act of Washington in connection with the offer of such securities. The Respondents have a right to request a hearing in this matter.


Edward G. Villesvik - S-05-186-06-FO01 - Final Order

On February 24, 2006 the Securities Division entered a Final Order against Edward G. Villesvik (“Villesvik”). The Division entered a Statement of Charges and Notice of Intent to Suspend Securities Salesperson Registration and Impose Fines against Villesvik on January 4, 2006. Villesvik failed to amend his Form U-4 to disclose a felony charge in Snohomish County on November 21, 2001 within thirty days. In the Final Order Villesvik’s securities salesperson registration was suspended for six (6) months and a fine of $2,500 was imposed. The Respondent has the right to request a judicial review of the Final Order.


Signed, Sealed & Delivered, Inc., dba Lakeside Escrow, and Joyce Feeley Ratcliffe -  S-05-082-05-CO01 - Consent Order

On February 22, 2006, the Securities Division entered a Consent Order with Respondents, Signed, Sealed & Delivered, Inc., dba Lakeside Escrow, and Joyce Feeley Ratcliffe (“Ratcliffe”). Respondents neither admitted nor denied any violations. The Consent Order prohibits Ratcliffe’s participation in the conduct of the affairs of any escrow agent that is subject to ch. 18.44 RCW, the Escrow Agent Registration Act. Respondents are jointly and severally liable for a $15,000 fine and for a $5,000 payment for investigative costs. Respondents each waived their right to a hearing and to judicial review of the Consent Order.


William Lawrence Kludas, American Marketing Technology Incorporated, William L. Kludas dba American Micro Supply, Entity Services Technology, Inc., and Status Corporation - S-03-232-05-SC01 - Statement of Charges

On February 9, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Impose Fines, and Charge Costs against William Lawrence Kludas, American Marketing Technology Incorporated, William L. Kludas dba American Micro Supply, Entity Services Technology, Inc., and Status Corporation (collectively “Respondents”). The Statement of Charges alleges that Respondents offered and sold unregistered promissory notes and/or contracts to purchase stock in the different entities. The investors resided in King, Spokane, Pierce, and Kittitas counties. The Statement of Charges further alleges that Respondents violated the broker-dealer registration and/or anti-fraud provisions of the Securities Act of Washington in connection with the offer and sale of such securities. The Securities Division ordered Respondents to cease and desist from violating the securities registration and anti-fraud provisions of the Securities Act of Washington. The Securities Division gave notice of its intent to collect fines and costs. Respondents have a right to request a hearing on the Statement of Charges.


Trivista Development Corporation, Trivista Financial Services, LLC, Dennis Ziegler, Roger Dennis Kimble, Chuck Methvin, and Michael Ward - S-05-152-06-SC01 - Statement of Charges

On February 7, 2006, the Securities Division entered a Statement of Charges against Respondents, Trivista Development Corporation, Trivista Financial Services, LLC, Dennis Ziegler, Roger Dennis Kimble, Chuck Methvin, and Michael Ward. The Statement of Charges alleges that Respondents each violated the registration and/or anti-fraud provisions of the Securities Act by offering and selling unregistered securities and/or failing to disclose material facts in connection with the offer and sale of securities. The investment money was allegedly raised for real estate development projects, including the development of time-share condos on a golf course in Clark County, Nevada. The Securities Division gave notice of its intent to collect fines and costs. Respondents have a right to request a hearing on this matter. This matter was resolved as to Dennis Ziegler by the entry of a Final Order on March 8, 2006.

This matter was resolved as to Chuck Methvin by the entry of a Consent Order on May 3, 2006.

This matter was resolved as to Roger Dennis Kimble by entry of a Consent Order on June 5, 2006.

This matter was resolved as to Michael Ward by entry of a Consent Order on July 7, 2006.


ACE Sushi Franchise Corporation and Asiana Management Group, Inc. – S-05-256-05-CO01 - Consent Order

On February 3, 2006, the Securities Division entered into a Consent Order with ACE Sushi Franchise Corporation and Asiana Management Group, Inc. The Division alleged that the companies sold two franchises in the state of Washington prior to filing a registration application with the Securities Division and that it had not complied with disclosure document requirements. The franchise involves the operation of sushi bars in grocery stores, supermarkets, and other retail locations. The Respondents agreed in the order to comply with the registration and disclosure document provisions of the Franchise Investment Protection Act in the future and also agreed to reimburse the Securities Division $600 for its costs of investigation in the matter. The Respondents also waived their rights to a hearing or other further proceedings in this matter.


5yearbond, 1yearbond, Benjamin Revell - S-05-235-05-TO01 - Summary Order

On February 1, 2006, the Securities Division entered a Summary Order to Cease and Desist against 5yearbond, 1yearbond and Benjamin Revell of Zurich Switzerland. The Summary Order to Cease and Desist alleges that the website 5yearbond.com and agents are currently offering investment opportunities to Washington residents that promise rates of return from 120%-400% annually and that the website makes material misrepresentations regarding the investment opportunity and the failure to disclose an enforcement action by another state securities regulator. The Summary Order to Cease and Desist further alleges that that the Respondents violated the broker-dealer registration and anti-fraud provisions of the Securities Act of Washington in connection with the offer and sale of such securities. The Securities Division ordered the Respondents to cease and desist from violating the securities registration and anti-fraud provisions of the Securities Act of Washington. The Respondents have right to request a hearing on the Summary Order to Cease and Desist.


Beerbaum & Beerbaum Financial and Insurance Services Inc. and Gary D. Lee - S-05-220-05-TO01 - Summary Order

On January 23, 2006, the Securities Division entered a Summary Order to Cease and Desist and Notice of Intent to Revoke Broker-Dealer Registration, Deny Investment Adviser Registration, Suspend and/or Deny Future Registration, Impose Fines and Charge Costs against Beerbaum & Beerbaum Financial and Insurance Services, Inc. (“Beerbaum & Beerbaum”) and Gary D. Lee (“Lee”). The Division alleged that Beerbaum & Beerbaum employed Lee for a period of at least 8 years as an unregistered securities salesperson and that Beerbaum & Beerbaum was acting as an investment adviser in Washington State without being registered to do so. The Division also alleged that Lee was acting as a securities salesperson and investment adviser in Washington state without being registered to do so. The Respondents have a right to request a hearing in this matter.

A Final Order was entered in this matter on February 18, 2011. 


All-In-One Financial Services, Inc., Garry A. Estrada - S-04-206-06-CO02 - Consent Order

On January 18, 2006, the Securities Division entered into a Consent Order with All-In-One Financial Services, Inc. (“All-In-One”) and it owner, Garry A. Estrada (“Estrada”)(collectively, “Respondents”). The Order revokes Respondents’ investment adviser and investment adviser representative registrations and resolves an action filed June 23, 2005, when the Division issued a Summary Order suspending Respondents’ registrations. The Consent Order enjoins Respondents from future violations of the Securities Act and imposed a $20,000 fine on Estrada. Based on his cooperation with the investigation, the entire amount of the fine was suspended. The investment adviser registration of All-In-One was permanently revoked, though Estrada may re-apply for registration in three years. Estrada may immediately reapply for registration as an investment adviser representative, though his registration would be subject to certain conditions. Restitution to the injured investors was paid by a third party, Viktor Klimenko, who agreed to pay restitution in a separate Order. Respondents All-In-One and Estrada have withdrawn their request for a hearing on this matter, and have waived their right to judicial review of the Consent Order.


Michael S. Kaminski - S-02-384-05-CO01 - Consent Order

On January 18, 2006, the Securities Division entered a Consent Order with Michael S. Kaminski to settle alleged violations of the anti-fraud provisions of the Securities Act of Washington. Kaminski neither admitted nor denied the violations. Kaminski was president of Preferred Funding, Inc., a now-defunct mortgage broker-dealer that did business in Kirkland, Washington. Kaminski allegedly failed to maintain interest reserves and construction holdbacks totaling approximately $900,000 for the benefit of more than 200 investors. The Securities Division imposed a fine of $15,000 against Kaminski, but agreed to suspend the fine, subject to Kaminski’s future compliance with the Securities Act of Washington. Kaminski waived his rights to a hearing in the matter and to judicial review of the order.


LionHearted Entertainment, Inc., Mary Ann and Kim Heathman - S-05-201-05-TO01 - Summary Order

On January 17, 2006, the Securities Division entered a Summary Order against LionHearted Entertainment, Inc. and its principals, Mary Ann and Kim Heathman, all of Zephyr Cove, Nevada. The Division alleges that LionHearted and the Heathmans promised investors returns as high as 500% on promissory notes issued to finance the creation of a film development company. The Heathmans are charged with making material misrepresentations concerning their ability to perform, and with failing to disclose material financial information about LionHearted. The Summary Order enjoins future violations of the Securities Act, and notifies the Respondents of the Division’s intent to order restitution, impose fines, and charge costs. Based in part on their refusal to cooperate during the investigation, the Division is continuing to investigate this matter. LionHearted and the Heathmans will have the opportunity for a hearing on this matter.


Sucasas Motor Company and Henrique Sucasas - S-05-117-05-FO01 - Final Order

On January 17, 2006, the Securities Division entered a Final Order against Sucasas Motor Company (“SMC”) and Henrique Sucasas (“Sucasas”). The Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist and to Impose Fines against SMC and Sucasas on September 9, 2005. SMC advertised its investment opportunity to be involved in the manufacture of a luxury sports car. In the Final Order, the Division ordered SMC and Sucasas to cease and desist from violations of the registration and anti-fraud provisions of the Securities Act. The fine of $2,500 was suspended based on the Respondents full and complete cooperation in the matter. The Respondents have the right to request judicial review of the Final Order.


Donald W. Bell - S-02-384-05-CO02 - Consent Order

On January 13, 2006, the Securities Division entered a Consent Order with Donald W. Bell to settle alleged violations of the anti-fraud provisions of the Securities Act of Washington. Bell neither admitted nor denied the violations. Bell was vice president of Preferred Funding, Inc., a now-defunct mortgage broker-dealer that did business in Kirkland, Washington. Bell allegedly failed to maintain interest reserves and construction holdbacks totaling approximately $900,000 for the benefit of more than 200 investors. The Securities Division imposed a fine of $10,000 against Bell, but agreed to suspend the fine, subject to Bell’s future compliance with the Securities Act of Washington. Bell waived his rights to a hearing in the matter and to judicial review of the order.


Joseph Winfield “Hap” Langlie, U.S. Monolith Ministry #2, The VenPar Group, Windy Langlie Tennis Center No.1 - S-05-212-05-FO01 - Final Order

On January 5, 2006, the Securities Division entered a Final Order against Hap Langlie and three of his businesses. On November 28, 2005, the Division entered a Summary Order alleging that Hap Langlie sold and defaulted on unregistered promissory notes and investment contracts and failed to disclose to investors two prior enforcement actions by the Securities Division. Langlie filed a written response with the Division waiving his right to a hearing. In the response, Langlie claimed that due to a Federal criminal investigation, he would assert his right to remain silent as to the charges. Though Langlie neither admitted nor denied the facts alleged, the Respondents indicated they would not dispute the facts of the Summary Order. As a result, the Final Order enjoins future violations of the Securities Act. The Respondents waived their right to judicial review of the Order.


Edward G. Villesvik - S-05-186-05-SC01 - Statement of Charges

On January 4, 2006, the Securities Division entered a Statement of Charges and Notice of Intent to Suspend Securities Salesperson Registration and Impose Fines against Edward G. Villesvik ("Villesvik"). The Division alleged that Villesvik failed to amend his Form U-4 to disclose a felony charge on November 21, 2001 within thirty days. Villesvik did not amend his Form U-4 to disclose the felony charge until April 5, 2004. The Respondent has a right to request a hearing in this matter. This matter was resolved by the entry of a Final Order on February 24, 2006.


Viktor V. Klimenko - S-04-206-05-CO01 - Consent Order

On January 3, 2006, the Securities Division entered into a Consent Order with Viktor V. Klimenko, doing business as International Supplier AR, of Kirkland, Washington. In April of 2005, the Division had issued a Summary Order to Cease and Desist alleging that from September 2003 through January 2004 Klimenko raised more than $100,000 from 14 people to invest in his international trading company. The Securities Division had further alleged that Klimenko made material misrepresentations regarding the investment opportunity. In entering into a settlement, the Division noted that Mr. Klimenko cooperated with the Securities Division, and admitted to offering and selling unregistered securities in violation of the Securities Act of Washington. The terms of the settlement provide for full restitution to injured investors, totaling more than $107,000. In addition to injunctive relief prohibiting future violations of the Securities Act, Mr. Klimenko's use of certain exemptions from security registration were revoked for a period of three years. Mr. Klimenko was also fined $40,000, with $36,000 of that amount suspended, and ordered to pay $3,000 in costs. Payment of the $7,000 in fines and costs was received prior to entry of the Consent Order; payment of restitution must be mailed within 10 days of entry. Mr. Klimenko withdrew his request for a hearing in this matter.

DFI