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Latest Enforcement News

  • (2019-11-21) United States Attorney Robert J. Higdon, Jr. announced that a federal grand jury had returned an Indictment charging ANTHONY WAYNE MARCH, 48, of Wake Forest, North Carolina, with one count of Securities Fraud; three counts of Wire Fraud; one count of Bankruptcy Fraud; one count of Obstruction of Bankruptcy Case; three counts of False Oaths; and four counts of Money Laundering. The indictment follows an investigation by the NC Secretary of State’s Securities Division and the IRS Criminal Investigation Division. For more information click here.

  • (2019-10-30) NASAA 2020 Fee Announcement -- The North American Securities Administrators Association (NASAA) today announced the continued waiver of Investment Adviser Registration Depository (IARD) system fees for state-registered investment adviser firms. NASAA also announced $5 increases in the IARD system fee for state-registered investment adviser representatives and the Electronic Filing Depository (EFD) system use fee for Form D, Rule 506 filings, effective January 1, 2020. Click the link for more details. For more information click here.

  • (2018-02-15) CFTC Issues First Pump-and-Dump Virtual Currency Customer Protection Advisory For more information click here.

  • (2018-01-11) FINRA Provides Guidance on Protecting Personal Information in Required Filings For more information click here.

Cease & Desist Orders

A summary cease & desist order is issued by the Securities Division when it appears that ongoing activity violates the North Carolina Securities Act or the North Carolina Investment Advisers Act and poses the threat of irreparable harm to the investing public. The cease & desist order commands those who receive it to stop any further violations and to comply with the requirements of the securities laws. At the time of issuance of a summary order, the persons named in the order have not had the opportunity to respond to its allegations. The order notifies those persons that they may request a hearing on whether the allegations are true. If no hearing is requested, the Division will issue a final order confirming the allegations as true. A final order terminates the controversy between the parties and concludes the issues in the proceeding, unless and until it is vacated or set aside.

Criminal Enforcement
& Administrative Actions


On December 10, 2019, the U.S. Attorney’s Office for the District of New Jersey announced the arrest of three men in connection with a cryptocurrency mining scheme that defrauded investors of $722 million. North Carolina Securities Division conducted an investigation into a fraudulent cryptocurrency mining scheme known as the BitClub Network. As a result of the multi-jurisdictional complexity of this scheme, the Division's investigation was coordinated with the United States Attorney's Office in New Jersey as well as the Internal Revenue Service Criminal Investigation Division (IRS-CI). According to the indictment, from April 2014 through December 2019, the defendants operated BitClub Network, a fraudulent scheme that solicited money from investors in exchange for shares of purported cryptocurrency mining pools and rewarded investors for recruiting new investors. For more information, please see the U.S. Attorney’s press release. On May 30, 2018, the Securities Division issued an investor alert regarding BitClub Network and its activities. For more information, click here.

On November 25, 2019, the Securities Division of the North Carolina Department of the Secretary of State issued a Temporary Cease and Desist Order to respondents, Ferry Capital Management, LLC ("FCM") and Paul Ferry. The Temporary Cease and Desist order found the respondents were transacting business in the State of North Carolina as investment advisers and investment adviser representatives in violation of the North Carolina Investment Advisers Act. Additionally, respondents continued to hold themselves out as a registered investment adviser and investment adviser representative in violation of the anti-fraud provisions of the North Carolina Investment Advisers Act. The Temporary Order to Cease and Desist ordered each respondent to immediately cease and desist from a) transacting business in the State of North Carolina as investment advisers and investment adviser representative, b) representing as an investment adviser or investment adviser representative on the internet or any social media platform, c) making material misstatements and omissions of fact to advisory clients, d) making or causing to be made any misleading filings in any material respect. The Temporary Order to Cease and Desist gives respondents 30 days in which to request a hearing. If no such request is made during that time, the Temporary Order to Cease and Desist shall become final. For more information, click here.

On November 21, 2019, United States Attorney Robert J. Higdon, Jr. announced that a federal grand jury had returned an Indictment charging ANTHONY WAYNE MARCH, 48, of Wake Forest, North Carolina, with one count of Securities Fraud; three counts of Wire Fraud; one count of Bankruptcy Fraud; one count of Obstruction of Bankruptcy Case; three counts of False Oaths; and four counts of Money Laundering. The indictment follows an investigation by the NC Secretary of State’s Securities Division and the IRS Criminal Investigation Division. For more information, click here.

On October 16, 2019, the U.S. Commodity Futures Trading Commission announced the filing of a civil enforcement action in the U.S. District Court for the District of Nevada, charging David Gilbert Saffron of Las Vegas, Nevada and Circle Society, Corp., a Nevada corporation, with fraudulent solicitation, misappropriation, and registration violations relating to an $11 million binary options scheme Saffron operated through Circle Society. The complaint was filed on September 30, 2019. The complaint charges that from at least December 2017 to the present, the defendants fraudulently solicited and accepted at least $11 million worth of bitcoin and U.S. dollars from individuals in the United States to trade off-exchange binary options on foreign currencies (“forex”) and cryptocurrency pairs, among other things. According to the complaint, the defendants fraudulently solicited funds from at least fourteen members of the public to participate in a pool operated by Circle Society, an entity Saffron created and used to perpetrate his fraud, by making false claims of Saffron’s trading expertise and guaranteeing rates of return up to 300%. Rather than using pool participants’ funds to trade in binary options contracts as promised, the defendants misappropriated funds, including by retaining participants’ funds in Saffron’s personal electronic cryptocurrency wallet and by using funds to pay other participants, in the manner of a Ponzi scheme. The defendants then lied to participants in order to conceal their misappropriation. The CFTC appreciates the assistance of the U.S. Attorney’s Office for the District of Nevada, the North Carolina Secretary of State’s Securities Division, and the Federal Bureau of Investigation’s Los Angeles Field Office. For more information, click here.

On October 14, 2019, the North Carolina Department of the Secretary of State, Securities Division entered into a Final Consent Order (“Order”) with Rising Tide, Inc. The Order found that Rising Tide failed, at all of its exams, to have written investment advisory contracts for all of its clients that complied with North Carolina law and that were signed by both the client and by Rising Tide. Pursuant to the Order, Rising Tide agreed to immediately cease and desist from violating any provisions of the North Carolina Investment Advisers Act and any related administrative rules, to pay a civil penalty, and to pay investigative costs. For more information, click here.

On September 30, 2019, the North Carolina Department of the Secretary of State, Securities Division entered into a Final Consent Order (“Order”) with Michael Paul Lessard, Jr. The Order found that Mr. Lessard had borrowed money from clients. Pursuant to the Order, Mr. Lessard's registration as a salesman was revoked effective May 10, 2018. He also agreed to immediately cease and desist from violating any provisions of the North Carolina Securities Act, the North Carolina Investment Advisers Act, and any related administrative rules. For more information, click here.

On September 12, 2019, the North Carolina Department of the Secretary of State, Securities Division entered into a Final Consent Order (“Order”) with Donald M. Rasmussen. The Order found that Mr. Rasmussen had not timely amended his Form U4 to disclose a tax lien, and that he used a professional designation he had not earned. Pursuant to the Order, Mr. Rasmussen agreed to immediately cease and desist from violating any provisions of the North Carolina Investment Advisers Act and any related administrative rules; keep his Form U4 updated; not use a professional designation unless properly earned; and pay a civil penalty. For more information, click here.

On May 13, 2019, the North Carolina Department of the Secretary of State, Securities Division entered into a Final Consent Order (“Order”) with David Todd Misenheimer. The Order found that Mr. Misenheimer had not timely amended his Form U4 to disclose several unsatisfied federal tax liens. Pursuant to the Order, Mr. Misenheimer agreed to immediately cease and desist from violating any provisions of the North Carolina Investment Advisers Act and any related administrative rules; update his Form U4; and pay a civil penalty. For more information, click here.

On May 6, 2019, the North Carolina Department of the Secretary of State, Securities Division entered into a Final Consent Order (“Order”) with Clyde Lawrence Yarbrough, III. The Order found that Mr. Yarbrough had not disclosed several unsatisfied federal tax liens on his Form U4. Pursuant to the Order, Mr. Yarbrough agreed to immediately cease and desist from violating any provisions of the North Carolina Investment Advisers Act and any related administrative rules; keep his Form U4 updated; and pay a civil penalty. For more information, click here.

On December 3, 2018, the Securities Division entered into a Consent Order with Idlewild Financial, LLC ("Idlewild"). Idlewild had failed to respond to the Administrator's books and records requests. In lieu of further administrative action, Idlewild has agreed to withdraw its registration as an investment adviser. For more information, click here.

On November 28, 2018, the Securities Division entered into a Consent Order with Conestoga Trust Services LLC, Conestoga Settlement Services, LLC, and Conestoga International LLC ("Conestoga"). Conestoga used unregistered persons to offer and sell securities to North Carolina residents in violation of the Securities Act. Conestoga has agreed to cease this practice and to pay a monetary penalty. For more information, click here.

On October 25, 2018, the Securities Division entered an Order against Patriots Energy Group, Inc. ("PEG"). This matter was heard by an Administrative Law Judge. The Judge entered a Proposed Decision. The Administrator adopted the Findings and Conclusions from that Proposed Decision and entered an Order. The Judge and the Administrator found that PEG violated the securities laws when it hired two unregistered salesmen to sell its security interests and when it made misrepresentations and omitted material facts in order to entice investors to purchase security interests. The Administrator ordered PEG to immediately and permanently cease and desist a) employing any unregistered salesmen to sell securities to North Carolina residents. b) offering or selling the profit-sharing investments to residents of North Carolina, and c) violating any other provisions of the Securities Act. For more information, click here.

On October 2, 2018, the Securities Division entered into a Consent Order with Raymond Marx Financial Advisory Group, Inc. ("RMFAG"). RMFAG is a North Carolina registered investment adviser. RMFAG, along with Raymond Marx Financial, Inc. ("RMGI"), an insurance company jointly marketed their services. The Securities Division found that RMFAG touted its investment adviser services to attract clients to the joint RMFAG and RMFI office. Once there, the clients would be offered insurance products from RMFI. FMFAG has agreed to cease this practice and to pay a monetary penalty. For more information, click here.

On September 6, 2018, the Securities Division entered into a Consent Order with Ameriprise Financial Services, Inc. ("Ameriprise"). The Securities Division found that Ameriprise violated North Carolina law by failing to update its written supervisory procedures("WSPs"). The WSPs designated facsimile as the only method to transmit certain documents and led to delayed communication of important information. Ameriprise has updated its WSPs and consented to a monetary penalty. For more information, click here.

On September 4, 2018, the North Carolina Department of the Secretary of State, Securities Division entered into a Consent Order with Wesleyan Investment Foundation Inc. (“Wesleyan”). The Consent Order found that Wesleyan sold unregistered securities in North Carolina. Pursuant to the Consent Order, Wesleyan agreed, among other things, to immediately cease and desist from violating any provisions of the North Carolina Securities Act and any related administrative rules, to pay a civil penalty, and to pay investigative costs. For more information, click here.

On August 10, 2018, the Securities Division entered into a Consent Order with Richard Parkes ("Parkes"). The Securities Division found that Parkes was holding himself out as an investment adviser even though he was only licensed to sell insurance products. Parkes has agreed to cease holding himself out as an investment adviser and to pay a monetary penalty. For more information, click here.

On July 30, 2018, Karen and John Palczuk pleaded guilty in Wake County District Court to the sale of unregistered securities. This plea stems from Karen and John Palczuk’s involvement in a Virgin Island limited liability company that attempted to raise money from investors in order to build villas on the islands. According to the arrest warrants, the Palczuks sold investment contracts to North Carolina investors in amounts greater than $100,000. This class I felony carries with it a 6-17 month sentence which has been suspended for 12 months of probation. For more information, click here.

On July 12, 2018, the Temporary Cease and Desist Order entered on January 9, 2018 against Bitconnect, BitConnect LTD, BitConnect International PLC and BitConnect Trading LTD ("BitConnect") became final. Since receiving the Temporary Cease and Desist Order Bitconnect has closed its exchange and lending operation. For more information, click here.

On June 12, 2018, Frank Calabro, Jr. (“Calabro”) entered into a Consent Order with the Deputy Securities Administrator agreeing to cease offering unregistered securities, acting as unregistered dealers/salesmen, and omitting to state material facts when offering securities. Click here to view the Consent Order. This Consent Order resolves the Temporary Cease and Desist Order entered on March 18, 2018. For more information, click here.

On May 30, 2018, the Securities Division of the North Carolina Department of Secretary of State issued an investor alert involving BitClub Network. For related information about a criminal matter involving BitClub Network, please see the information under the entry for December 10, 2019, above. For more information, click here.

On May 10, 2018, Adosia LLC and Kyle Solomon (“Respondents”) entered into a Consent Order with the Deputy Securities Administrator ("Administrator”). During an investigative sweep, the Administrator discovered that Respondents intended to undertake an initial coin offering (“ICO”). Prior to the commencement of the ICO, the Administrator alerted Respondents that the Administrator believed that token they intended to offer through the ICO was a security. As a result, the Respondents agreed to cease offering the token through the ICO and to provide a rescission offer to the investor who purchased the token during the ICO pre-sales. For more information, click here.

On April 19, 2018, the Temporary Cease and Desist Order entered on March 2, 2018 against Power Mining Pool ("PMP") became final, permanently barring PMP from, among other things, offering unregistered securities in North Carolina. For more information, click here.

On April 17, 2018, the Temporary Cease and Desist Order and the Summary Suspension entered on February 27, 2018 against RJM Financial, RJM Financial, LLC and Russell Joseph Mutter (the "RJM Respondents") became final, barring the RJM Respondents from administering or misappropriating client assets and revoking the investment adviser registration. For more information, click here.

On April 17, 2018, Alan Carver and Dechoker, LLC entered into a Consent Order with the Deputy Securities Administrator agreeing to cease offering unregistered securities and acting as unregistered dealers/salesmen in North Carolina. Click here. to view the Consent Order. Also on April 17, 2018, the Deputy Securities Administrator entered a Final Order against Russell Wadell, Mark Shores, and Mark Honeycutt making permanent the Temporary Cease and Desist Order in the matter of Dechoker, LLC, Alan Carver, Russell Wadell, Mark Shores, and Mark Honeycutt entered on February 15, 2018. For more information, click here.

On April 6, 2018, the Temporary Cease and Desist Order entered on February 16, 2018USI-Tech Limited ("USIT") became final, permanently barring USIT from, among other things, offering securities in North Carolina until such time as it becomes fully compliant with North Carolina's securities laws. For more information, click here.

On March 26, 2018, as the result of a multi-jurisdictional investigation, the Securities Division of the North Carolina Department of the Secretary of State entered into an Administrative Consent Order with LPL Financial, LLC (“LPL”) regarding its conduct surrounding the offers of non-traded real estate investment trusts (“REITs”) to citizens of North Carolina. The Order found that LPL failed to implement and enforce an adequate supervisory system which led to the improper conduct by its employees when offering the REITs. LPL will offer to remediate losses of all North Carolina residents who purchased the improperly sold REITs. LPL also paid a fine and investigative costs to the Secretary of State’s office. For more information, click here.

On March 8, 2018, the Securities Division of the North Carolina Department of Secretary of State issued a Temporary Cease and Desist Order to Frank Calabro, Jr. (“Calabro”). The Temporary Cease and Desist Order found that Calabro was not registered as a dealer or salesman of securities in North Carolina and offered and sold securities on behalf of multiple different companies in violation of the North Carolina Securities Act. The Temporary Cease and Desist Order ordered Calabro to cease and desist a) offering unregistered securities, b) acting as a securities dealer and/or salesman in North Carolina while not registered to do so, and c) making material misstatements and omissions of fact when offering securities. The Temporary Cease and Desist Order gives Calabro thirty (30) business days in which to request a hearing. If no such request is made during that time, the Temporary Cease and Desist Order shall become final. For more information, click here.

On March 2, 2018, the North Carolina Secretary of State issued a Temporary Cease and Desist Order to Power Mining Pool ("PMP"). The Temporary Cease and Desist Order found that PMP was not registered as a dealer or salesman of securities in North Carolina and offered investments called the mining pool shares, which were found to be securities. The Temporary Order to Cease and Desist also found that PMP had omitted to disclose material facts when offering the mining pool shares in North Carolina. These activities are in violation of the North Carolina Securities Act. The Temporary Cease and Desist Order directed PMP to cease and desist offering unregistered securities, acting as an a securities dealer in North Carolina while it is not registered to do so, and engaging in fraud in connection with the offer or sale of any security. The Temporary Cease and Desist Order gives PMP thirty (30) business days in which to request a hearing. If no such request is made during that time, the Temporary Cease and Desist Order shall become final. For more information, click here.

On February 27, 2018, the Securities Division of the North Carolina Department of the Secretary of State entered into a Final Consent Order (“Order”) with David Ralph Allison. The Order found that the respondent had transacted business in North Carolina as a dealer or salesman without being registered in North Carolina, and he had sold or offered to sell securities in North Carolina that were not registered in North Carolina, and that were not otherwise exempt from registration, or covered under federal law. Pursuant to the Order, Mr. Allison agreed to immediately cease and desist from violating any provisions of the North Carolina Securities Act and any related administrative rules. For more information, click here.

On February 27, 2018, the Securities Division of the North Carolina Department of Secretary of State issued a Temporary Cease and Desist Order to RJM Financial, RJM Financial, LLC and Russell Joseph Mutter (the “RJM Respondents”). The Temporary Cease and Desist Order found that the RJM Respondents violated the North Carolina Investment Advisers Act by misappropriating client funds. The Temporary Cease and Desist Order ordered the RJM Respondents to cease and desist soliciting new clients, administering the assets of current clients, misappropriating client funds, and engaging in fraud. The Temporary Cease and Desist Order gives the RJM Respondents thirty (30) business days in which to request a hearing. If no such request is made during that time, the Temporary Cease and Desist Order shall become final. For more information, click here.

On February 27, 2018, the Securities Division of the North Carolina Department of Secretary of State issued an Order of Summary Suspension (the “Order”) to RJM Financial, RJM Financial, LLC and Russell Joseph Mutter (the “RJM Respondents”). The Order found that the RJM Respondents violated the North Carolina Investment Advisers Act by filing misleading and false documents with the Secretary of State’s office, and by engaging in a course of business which operated as a fraud. The Order suspends the registration of the RJM Respondents. The Order gives the RJM Respondents thirty (30) business days in which to request a hearing. If no such request is made during that time, the Order shall become final. For more information, click here.

On February 16, 2018, the North Carolina Secretary of State issued a Temporary Cease and Desist Order to USI-Tech Limited ("USIT"). The Temporary Cease and Desist Order found that USIT was not registered as a dealer or salesman of securities in North Carolina and offered investments called the BTC Package, which were found to be securities. The Temporary Order to Cease and Desist also found that USIT had omitted to disclose material facts when offering the BTC Package in North Carolina. These activities are in violation of the North Carolina Securities Act. The Temporary Cease and Desist Order directed USIT to cease and desist offering unregistered securities, acting as an a securities dealer in North Carolina while it is not registered to do so, and engaging in fraud in connection with the offer or sale of any security. The Temporary Cease and Desist Order gives USIT thirty (30) business days in which to request a hearing. If no such request is made during that time, the Temporary Cease and Desist Order shall become final. For more information, click here.

On February 15, 2018, the Securities Division of the North Carolina Department of Secretary of State issued a Temporary Cease and Desist Order to Dechoker, LLC, Alan Carver, Russell Wadell, Mark Shores and Mark Honeycutt (the “Dechoker Respondents”). The Temporary Cease and Desist Order found that the Dechoker Respondents were not registered as dealers or salesmen of securities in North Carolina and offered and sold interests in Dechoker, LLC; these activities are in violation of the North Carolina Securities Act. The Temporary Cease and Desist Order ordered Dechoker Respondents to cease and desist offering unregistered securities and acting as securities dealers and/or salesmen in North Carolina while not registered to do so. The Temporary Cease and Desist Order gives the Dechoker Respondents thirty (30) business days in which to request a hearing. If no such request is made during that time, the Temporary Cease and Desist Order shall become final. For more information, click here.

On February 15, 2018, lan Peter Darcy (aka Alan D’Arcy, aka Irish Darcy), of Murphy, NC, was sentenced in federal district court to 108 months in federal prison for his part in orchestrating an $800,000 investment fraud scheme. Darcy was indicted on March 24, 2017, by a federal grand jury on one count of wire fraud, to which he later pleaded guilty. According to documents filed with the court, in or about February 2012 through at least June 2016, Darcy engaged in a scheme to defraud multiple victims of more than $800,000 by inducing them to invest in a variety of bogus financial instruments and products, such as fraudulent “cash flow contracts,” “Joint Participation Agreements,” and leased “Bank Guarantees.” Contrary to his representations, Darcy did not hold the victims’ money in escrow or create trust accounts for the victims. Instead, he deposited the money into bank accounts he controlled and spent more than $400,000 of the victims’ money to fund his personal lifestyle, including through large amounts of cash withdrawals and personal expenditures such as pet care, entertainment, travel and the purchase of a used Jaguar automobile. Darcy is not scheduled for release until January 26, 2026. For more information, click here.

On January 10, 2018, the Securities Division of the North Carolina Department of Secretary of State issued an Investor Alert on Investment Schemes Involving Cryptocurrencies. For more information, click here.

On January 9, 201, the Securities Division of the North Carolina Department of Secretary of State issued a Temporary Order to Cease and Desist to Bitconnect, BitConnect LTD, BitConnect International PLC and BitConnect Trading LTD ("BitConnect"). BitConnect was ordered to cease and desist from offering for sale, soliciting offers to purchase or selling, in or from North Carolina, any securities unless and until such securities have been registered and BitConnect, and any person or entity under the direction or control of BitConnect, is properly registered as a securities dealer or salesman. The Temporary Order to Cease and Desist found that BitConnect. was not registered as a dealer or salesman of securities in North Carolina and offered investments called the BitConnect Lending Program and the BitConnect Staking Program. The Temporary Order to Cease and Desist also found that BitConnect had omitted to disclose material facts when offering these investments in North Carolina. These activities are in violation of the North Carolina Securities Act. The Temporary Order to Cease and Desist gives BitConnect thirty (30) business days in which to request an hearing. If no such request is made during that time, the Temporary Order to Cease and Desist shall become final. For more information, click here.

On November 30, 2017, the Securities Division of the North Carolina Department of the Secretary of State entered into a Consent Order with Carlton Hall Asset Management, LLC and Carlton Gray Hall, Jr. The Consent Order found that the respondents had failed to supervise an investment adviser representative of Carlton Hall Asset Management, LLC. Pursuant to the Consent Order, respondents agreed to immediately cease and desist from violating any provisions of the North Carolina Investment Advisers Act and any related administrative rules, and to pay a civil penalty. For more information, click here.

On November 15, 2017, the Securities Division of the North Carolina Department of the Secretary of State entered into a Consent Order with Small People Group ("SPG") and Stanley Patterson("Patterson"). The Consent Order found that SPG and Patterson offered unregistered securities to the investing public. Neither SPG nor Patterson were registered, nor did they secure a crowdfunding exemption for the securities. The Consent Order ordered SPG and Patterson to cease and desist selling unregistered securities. For more information, click here.

On November 2, 2017, the Securities Division of the North Carolina Department of the Secretary of State entered into a Consent Order with JGM Wealth Management, L.L.C. (“JGM”) and John G. Mergner, Jr. (“Mergner”). The Consent Order found that JGM and Mergner frequently failed to file registration documents promptly and made material misstatements in filings with the Administrator. The Administrator ordered JGM and Mergner to update the misleading filings and then withdraw the registration. For more information, click here.

On October 11, 2017, the Securities Division of the North Carolina Department of the Secretary of State entered into a Consent Order with Hightower Financial Partners, LLC (“Hightower”). The Consent Order found that Hightower had filed a document with the Secretary of State which was false or misleading, and that it failed to promptly file a correcting amendment after a document it had previously filed became inaccurate. Pursuant to the Consent Order Hightower agreed to withdraw its registration as an investment adviser in North Carolina, and to immediately cease and desist from violating any provisions of the North Carolina Investment Advisers Act, the North Carolina Securities Act or any administrative rules promulgated under either Act. For more information, click here.

On September 28, 2017, the Securities Division of the North Carolina Department of the Secretary of State entered into a Consent Order with SCD Capital, Inc. and Scott Daily. The Consent Order found that SCD and Daily “cherry-picked” trades for personal gain, made false or misleading statements to clients, and made material misstatements in filings with the Administrator. The Administrator ordered that SCD and Daily accept a two day suspension, cease and desist such activities and pay fines. For more information, click here.

On September 24, 2017, the Securities Division of the North Carolina Department of the Secretary of State entered into a Consent Order with LPL Financial LLC. The Consent Order found that LPL had failed to reasonably supervise its salesman Charles Caleb Fackrell and failed to observe high standards of commercial honor. Pursuant to the Consent Order, LPL paid a civil penalty, reimbursed the Securities Division for investigative costs associated with the matter, and was ordered to immediately cease and desist from violating any provisions of the North Carolina Securities Act, the North Carolina Investment Advisers Act, or any administrative rules promulgated under either Act. Click here and here for press releases regarding Charles Caleb Fackrell. For more information, click here.

On September 15, 2017, the Securities Division of the North Carolina Department of the Secretary of State entered into a Consent Order with SAJJDBORDEAUX, Inc. and Jeffrey Bordeaux. During an Internet sweep, the Securities Division found that SAJJDBORDEAUX, Inc. and Jeffrey Bordeaux were offering unregistered securities to the investing public through Craigslist. Neither SAJJDBORDEAUX, Inc. nor Jeffrey Bordeaux were registered, nor did they secure a crowdfunding exemption for the securities. The Consent Order ordered SAJJDBORDEAUX, Inc. and Jeffrey Bordeaux to cease and desist selling unregistered securities. For more information, click here.

On August 15, 2017, Robert Louis Winecoff, of Huntersville, NC, was sentenced in federal district court to 51 months in federal prison for operating an investment fraud scheme involving bogus investment products. Winecoff previously pleaded guilty in March 2017 to one count of wire fraud. According to documents filed with the court, from June 2013 to May 2014, Winecoff executed a scheme to defraud approximately 12 investors from several different countries out of approximately $343,000 by inducing them to invest in a variety of bogus investment instruments and products. Rather than invest his victim-investors’ money as promised, Winecoff diverted the funds for his own personal use. Court records show that Winecoff made purchases totaling nearly $65,000 at hotels, airlines, gas stations, and retail stores. He also made cash withdrawals totaling nearly $308,000 from the account into which victims had wired their money. All federal sentences are served without the possibility of parole. The Securities Division of the North Carolina Secretary of State and the US Postal Inspection Service led the investigation. Assistant U.S. Attorney William Miller, of the U.S. Attorney’s Office in Charlotte, prosecuted the case. Winecoff is not scheduled for release until January 21, 2021. For more information, click here.

On July 10, 2017, the Securities Division of the North Carolina Department of the Secretary of State entered into a Consent Order with Deloitte Corporate Finance LLC. The Consent Order found that Deloitte Corporate Finance LLC had failed to reasonably supervise certain of its salesmen in Charlotte, and that it failed to file accurate and complete Form U4s or file timely amendments to Form U4s with respect to certain of its salesmen in Charlotte. For more information, click here.

On October 24, 2016, the North Carolina Secretary of State's Securities Division entered into a Consent Order with Palmetto Premier Advisors, LLC. The Consent Order ordered that the Respondents immediately cease and desist from transacting business in this State in violation of the provisions of the North Carolina Investment Advisers Act or the rules thereunder. For more information, click here.

On October 18, 2016, the Securities Division of the North Carolina Department of the Secretary of State issued a Final Order against Daniel P. Sexton. The Order obligates Mr. Sexton to cease and desist from violating the N.C. Securities Act (G.S. Ch. 78A) and also to accurately report information on Form U-4. Mr. Sexton further agreed to amend his Form U-4 in a timely manner. In addition, the Order required a monetary payment of $1,000.00 in settlement of the Securities Division's investigation. The Order found Mr. Sexton had failed to disclose business activities outside the scope of his employment with his securities dealer and, consequently, had filed an incomplete application for registration under the N.C. Securities Act. For more information, click here.

On July 14, 2016, the North Carolina Secretary of State's Securities Division issued an Order of Summary Postponement to Palmetto Premier Advisors, LLC. The Order of Summary Postponement ordered pursuant to the authority contained in N.C.G.S. §78C-19(c) and 78C-19(f), that, pending a hearing and a final determination of this matter, the North Carolina registration of Palmetto Premier Advisors, LLC as an investment adviser be postponed. For more information, click here.

On May 26, 2015, Michael Anthony Jenkins of Raleigh, NC, pleaded guilty on May 26, 2015, to three counts of felony securities fraud and one count of felony obtaining property by false pretenses. Jenkins admitted to running a classic Ponzi scheme through a company called Harbor Light Asset Management, by which he paid off earlier investors with money he received from later investors. He also converted investors’ fund to his own personal use. Jenkins told investors he would use their funds to trade commodities futures or “E-mini futures” through Harbor Light Asset Management. Through false promises of investing in commodities futures, and false monthly updates, Jenkins defrauded victims out of an estimated $1.79 million from January 2011 to 2012. He was never registered with the NC Securities Division to sell securities, or with the National Futures Association to act as a commodities trader. The U.S. District Court for the Eastern District of North Carolina entered an Order for a permanent injunction against Harbor Light Asset Management, LLC (HLAM) and Michael Anthony Jenkins. The Order requires HLAM and Jenkins jointly to pay restitution totaling $1,301,406.60 and a civil monetary penalty of $3,904,219.80. Jenkins was sentenced to a minimum of 9 years 8 months, and a maximum of about 13 years. For more information, click here.

On May 15, 2015, the Securities Division of the North Carolina Department of Secretary of State issued a Final Order of Revocation (Order) against Aegis Capital, LLC (Aegis). The Order revoked Aegis's registration to operate as an Investment Adviser in North Carolina. The Order found that Aegis had violated provisions of the Investment Advisers Act. For more information, click here.

On May 4, 2015, the Securities Division of the North Carolina Department of Secretary of State issued a Final Order to Cease and Desist against CAUSwave, Inc. This Order made permanent the terms of the Temporary Order to Cease and Desist issued on March 12, 2015. The Final Order found that CAUSwave, Inc. has violated the North Carolina Securities Act. The Order directs CAUSwave, Inc. and any person, employee, officer, director, entity or independent contractor under the direction or control of CAUSwave, Inc, to cease and desist from offering for sale, soliciting offers to purchase or selling, in or from North Carolina, any securities unless and until: (1) such securities have been registered under the provisions of the North Carolina Securities Act, and (2) CAUSwave, Inc. and any person or entity under the direction or control of CAUSwave, Inc. is properly registered as a securities dealer or salesman under the provisions of the North Carolina Securities Act. For more information, click here.

On March 20, 2015, the Securities Division of the North Carolina Department of Secretary of State issued an Order of Summary Suspension (Order) against Aegis Capital, LLC (Aegis). The Order suspended Aegis’s registration to operate as an Investment Adviser in North Carolina. The Order found that Aegis had violated provisions of the Investment Advisers Act. The Order gives Aegis thirty (30) business days in which to request a hearing. If no such request is made during that time, the Order shall become final. For more information, click here.

On March 12, 2015, the Securities Division of the North Carolina Department of Secretary of State issued a Temporary Order to Cease and Desist to CAUSwave, Inc. CAUSwave, Inc. was ordered to cease and desist from offering for sale, soliciting offers to purchase or selling, in or from North Carolina, any securities unless and until such securities have been registered and CAUSwave, and any person or entity under the direction or control of CAUSwave is properly registered as a securities dealer or salesman. The Temporary Order to Cease and Desist found that CAUSwave, Inc. was not registered as a dealer or salesman of securities in North Carolina and offered and sold shares of its unregistered stock; these activities are in violation of the North Carolina Securities Act. The Temporary Order to Cease and Desist gives CAUSwave, Inc. thirty (30) business days in which to request an hearing. If no such request is made during that time, the Temporary Order to Cease and Desist shall become final. For more information, click here.

On February 12, 2015, the Securities Division of the North Carolina Department of Secretary of State issued a Final Order to Cease and Desist against respondents Stark Innovations, L.L.C., and David Alan Topping, doing business as "Stark Investments, Inc." This Order makes permanent the terms of the Temporary Order to Cease and Desist issued on November 5, 2014 in this matter. Respondents failed to object to the issuance of the Final Order or to seek any hearing in this matter. Respondents are prevented and restrained from offering to sell, or selling, securities interests in Stark Innovations, L.L.C., or any other security, in North Carolina without first complying with the North Carolina Securities Act For more information, click here.

On January 27, 2015, the Securities Division of the North Carolina Department of the Secretary of State entered into a Final Consent Order with Respondent, McGrath & Associates, Inc. McGrath & Associates, Inc. is a registered investment adviser in the State of North Carolina. McGrath & Associates, Inc. violated the registration provisions of the North Carolina Investment Advisers Act by employing an unregistered investment adviser representative. The unregistered investment adviser representative was fully qualified for registration. The registration violation came to the Securities Division’s attention through a routine audit of the investment adviser. McGrath & Associates, Inc. properly registered the investment adviser representative on May 13, 2014. For more information, click here.

On December 30, 2014, an Order of Default Judgment was entered against Edwin A. Vasquez and his company, Vasquez Global Investments, LLC (VGI), for defrauding participants in a commodity pool commonly known as the Vasquez pool (see press release issued by the Commodity Futures Trading Commission). Vasquez and VGI are liable, jointly and severally, to pay $331,556 in restitution and must also pay a civil monetary penalty of $994,668. The Order also imposes permanent trading, solicitation, and registration bans. Beginning in August 2011, Vasquez, acting individually and through VGI, defrauded and deceived at least 19 participants who invested at least $583,491 in the Vasquez pool. Vasquez told prospective pool participants that he was a successful trader and that the VGI pool was a “no risk” investment. In fact, of the $583,491 solicited and accepted from pool participants Vasquez and VGI lost $65,374 trading commodity futures and misappropriated $331,556 by using those funds to pay for VGI’s operating costs and for Vasquez’s personal expenses. During that time, Vasquez did not disclose his trading losses and misappropriation and, instead, issued false statements to the pool participants regarding the profitability and value of their shares of the pool. For more information, please see the CFTC’s 8/7/2014 press release. The Securities Division of the North Carolina Department of the Secretary of State issued a Temporary Order to Cease and Desist against Vasquez and his company on October 22, 2013, for violating the North Carolina Securities Act. For more information, click here.

On December 19, 2014, the Securities Division of the North Carolina Department of the Secretary of State entered into a Consent Order with respondents, Senior Veterans Council, LLC, and David L. Cole. Respondent Senior Veterans Council, LLC, through its agent, Respondent David L. Cole improperly held itself out to the North Carolina investing public as an investment adviser licensed to legally engage in investment advisory business. The Consent Order also found that respondents engaged in the business of providing investment advisory services in North Carolina without being properly registered to do so under the North Carolina Investment Advisers Act. For more information, click here.

On November 05, 2014, the Securities Division of the North Carolina Department of the Secretary of State issued a Temporary Order to Cease and Desist to Stark Innovations, L.L.C., and David Alan Topping, d/b/a “Stark Investments, Inc.”. Stark Innovations, L.L.C., and David Alan Topping, d/b/a “Stark Investments, Inc.” were ordered to cease and desist from offering for sale, soliciting offers to purchase or selling, in or from North Carolina, any securities unless and until such securities have been registered and Stark Innovations, L.L.C., and David Alan Topping, d/b/a “Stark Investments, Inc.” become registered as a dealer or salesman of securities. The Temporary Order to Cease and Desist found that Stark Innovations, L.L.C., and David Alan Topping, d/b/a “Stark Investments, Inc.” offered for sale as investment opportunities certain securities in the form of promissory notes, whereby investors could expect an interest return based on increased revenue generated from international trade; and that this activity violated the North Carolina Securities Act. The Temporary Order to Cease and Desist gives Respondents 30 days in which to request a hearing. If no such request is made during that time, the Temporary Order to Cease and Desist shall become final. For more information, click here.

On May 21, 2014, the Securities Division of the North Carolina Department of the Secretary of State, with the consent of Respondents, issued a Final Consent Order against Respondents Empowered Investor Incorporated, James Daryl Upham, and Thomas Cowart Goolsby, based on findings of violations of the North Carolina Investment Advisers Act by the Respondents in soliciting advisory clients and in the management of their advisory clients’ accounts. The Final Order revokes the investment adviser registration of Empowered Investor Incorporated, and the registrations as investment adviser representatives of Upham and Goolsby. The Respondents are ordered to cease and desist from engaging in the securities or financial services business and from transacting any business as an investment adviser, investment adviser representative, or securities dealer or salesman. In addition, the Order prohibits Respondents for ten years from seeking registration as an investment adviser or investment adviser representative pursuant to N.C.G.S. Chapter 78C or as a dealer or salesman pursuant to N.C.G.S. Chapter 78A. For more information, click here.

On October 22, 2013, the Securities Division of the North Carolina Department of the Secretary of State issued a Temporary Order to Cease and Desist to VASQUEZ GLOBAL INVESTMENTS, LLC and EDWIN A. VASQUEZ. VASQUEZ GLOBAL INVESTMENTS, LLC and EDWIN A. VASQUEZ were ordered to cease and desist from offering for sale, soliciting offers to purchase or selling, in or from North Carolina, any securities unless and until such securities have been registered and VASQUEZ GLOBAL INVESTMENTS, LLC and EDWIN A. VASQUEZ become registered as a dealer or salesman of securities. The Temporary Order to Cease and Desist found that VASQUEZ GLOBAL INVESTMENTS, LLC and EDWIN A. VASQUEZ offered and sold debt instruments in transactions involving an investment enterprise that alleged to trade in futures contracts and commodities, which violated the North Carolina Securities Act. The Temporary Order to Cease and Desist gives Respondents 30 days in which to request a hearing. If no such request is made during that time, the Temporary Order to Cease and Desist shall become final. For more information, click here.

On September 6, 2013, the Securities Division of the North Carolina Department of the Secretary of State issued a Final Order to Cease and Desist to respondents, Ballantyne Wealth Advisors, LLC, Ballantyne Wealth Management Group, LLC, and Ronald J. Walters. The Final Order to Cease and Desist made final the Temporary Order to Cease and Desist issued and entered by the Division on June 21, 2013, ordering each respondent to cease and desist from transacting business in the State of North Carolina as investment advisers and investment adviser representative in violation of the North Carolina Investment Advisers Act. The Temporary Order to Cease and Desist found that respondents were engaged in the business of providing investment advisory services in North Carolina without being properly registered to do so under the North Carolina Investment Advisers Act. Additionally, respondents continued to hold themselves out as registered investment adviser and investment adviser representative in violation of the anti-fraud provisions of the North Carolina Investment Advisers Act. The Temporary Order to Cease and Desist gave Ballantyne Wealth Advisors, LLC, Ballantyne Wealth Management Group, LLC, and Ronald J. Walters 30 days in which to request a hearing. Respondents failed to file such a request within the time allowed, causing the Temporary Order to Cease and Desist to become permanent and final. For more information, click here.

On July 11, 2013, the Securities Division of the North Carolina Department of the Secretary of State, with the consent of Respondents, issued a Final Order against Fraser Landmark, LLC, d/b/a Fraser Advisorsas successor in registration to Fraser Management Associates, LLC, a/k/a FMA, LLC ("Fraser"), William Alexander Seagle, and Leonard David Davenport. The Final Order ordered that the registration of Fraser be restricted and limited as described in the Final Order. The Final Order also ordered that the applications of Mr. Seagle and Mr. Davenport for registration as investment advisers representatives under Chapter 78C be granted, subject to the restrictions and limitations described in the Final Order. The Final Order found that, from February 2006 through present, Fraser had: (a) transacted business in this State as an investment adviser by, among others, providing investment advice for compensation; and (b) neither submitted a notice filing with the Administrator under Chapter 78C between 2006 and 2012 when it was an investment adviser covered under federal law, nor registered itself, for the period of 28 June 2012 through 10 December 2012, with the Administrator as an investment adviser under Chapter 78C. The Final Order also found that, from February 2006 through present, Mr. Seagle and Mr. Davenport had transacted business in this State as investment adviser representatives of Fraser, and during such period neither person was registered as an investment adviser representative under Chapter 78C. For more information, click here.

On June 21, 2013, the Securities Division of the North Carolina Department of the Secretary of State issued a Temporary Order to Cease and Desist to respondents, Ballantyne Wealth Advisors, LLC, Ballantyne Wealth Management Group, LLC, and Ronald J. Walters. The Temporary Order to Cease and Desist ordered each respondent to immediately cease and desist from transacting business in the State of North Carolina as investment advisers and investment adviser representative in violation of the North Carolina Investment Advisers Act. The Temporary Cease and Desist found that respondents were engaged in the business of providing investment advisory services in North Carolina without being properly registered to do so under the North Carolina Investment Advisers Act. Additionally, respondents continued to hold themselves out as registered investment adviser and investment adviser representative in violation of the anti-fraud provisions of the North Carolina Investment Advisers Act. The Temporary Order to Cease and Desist gives Ballantyne Wealth Advisors, LLC, Ballantyne Wealth Management Group, LLC, and Ronald J. Walters 30 days in which to request a hearing. If no such request is made during that time, the Temporary Order to Cease and Desist shall become final. For more information, click here.

On May 14, 2013, the Securities Division of the North Carolina Department of the Secretary of State, with the consent of Respondents, issued a Final Order against Pliny Arenas and Salem Vision Ventures, LLC, a former North Carolina limited liability company. The Final Order ordered that Pliny Arenas and Salem Vision Ventures, LLC cease and desist from offering to sell or selling securities of any kind including, but not limited to, investment contracts or membership interests in a limited liability company such as Respondent Salem Vision Ventures, LLC. The Final Order found that neither Pliny Arenas nor Salem Vision Ventures, LLC was registered to offer or sell securities in North Carolina, in violation of the North Carolina Securities Act. For more information, click here.

On March 27, 2013, the Securities Division of the North Carolina Department of the Secretary of State issued a Temporary Order to Cease and Desist to, respondents, James Harvey Mason, The JHM Forex Only Pool (f/k/a The JHM Forex Only Pool, LP), and Forex Trading at Home (d/b/a “FTAH Partners”). The Temporary Order to Cease and Desist ordered each respondent, and any agent thereof, to immediately cease and desist offering for sale, soliciting offers to purchase, or selling, any security of any issuer, howsoever denominated, including but not limited to the securities of respondents or other entities under their control, unless and until any such: (a) Securities have been registered under the provisions of the Securities Act; and (b) Respondent, and any person or entity under the direction or control of any such respondent, is properly registered as a securities dealer or salesman under the provisions of the North Carolina Securities Act. The Temporary Order to Cease and Desist found that respondents offered investment contracts in the form of an investment program whereby investors’ money was pooled and used to trade off-exchange foreign currencies. The Temporary Order to Cease and Desist gives James Harvey Mason, The JHM Forex Only Pool (f/k/a The JHM Forex Only Pool, LP), and Forex Trading at Home (d/b/a “FTAH Partners”) 30 days in which to request a hearing. If no such request is made during that time, the Temporary Order to Cease and Desist shall become final. For more information, click here.

On February 27, 2013, the Securities Division of the North Carolina Department of the Secretary of State issued a Temporary Order to Cease and Desist to Roman Novak, Radoslav Novak, and Inter Reef LTD d/b/a Profitable Sunrise. Roman Novak, Radoslav Novak, and Inter Reef LTD d/b/a Profitable Sunrise were ordered to cease and desist from offering for sale, soliciting offers to purchase or selling, in or from North Carolina, any securities unless and until such securities have been registered and Roman Novak, Radoslav Novak, and Inter Reef LTD d/b/a Profitable Sunrise become registered as dealers or salesmen of securities. The Temporary Order to Cease and Desist found that Roman Novak, Radoslav Novak, and Inter Reef LTD d/b/a Profitable Sunrise offered investment contracts in the form of investment plans, made available through their website http://www.profitablesunrise.com, in violation of the North Carolina Securities Act. The Temporary Order to Cease and Desist gives Respondents 30 days in which to request a hearing. If no such request is made during that time, the Temporary Order to Cease and Desist shall become final. For more information, click here.

On February 4, 2013, the Securities Division of the North Carolina Department of the Secretary of State issued a Final Order to Cease and Desist against Hedrick Consulting, Incorporated and Rondell Scott Hedrick. The Final Order to Cease and Desist permanently ordered that Respondents shall cease and desist from offering for sale, soliciting offers to purchase or selling, in or from North Carolina, any securities, including but not limited to the securities of Hedrick Consulting, Incorporated. The Final Order to Cease and Desist found that Hedrick Consulting, Incorporated and Rondell Scott Hedrick are in violation of N.C.G.S. §§78A-24 and 78A-36. For more information, click here.

On January 17, 2013, Robert S. Moss of Charlotte, NC, was sentenced in U.S. District Court for the Western District of North Carolina to 57 months in prison followed by three years of supervised release, and was also ordered to pay $1,460,121 as restitution. From about 2001 through about February 2009, Moss solicited investments totaling approximately $3.1 million from victims nationwide. Moss lured his victims by falsely claiming that he was generating substantial profits through options trading in the commodities futures market. Moss told his victims that he had generated annual returns of between 22% and 41%, and that none of his investors had ever lost any capital. In fact, between 2003 and 2009, Moss suffered losses of $342,264 in the commodities futures market. Moss also advised the victims that his liquid assets were more than three times the size of his trading account when in fact they were not. To conceal his scheme, Moss made Ponzi payments to his victims totaling $1.6 million and falsely represented that these payments were the result of successful trading profits. In addition, Moss unlawfully used money invested by the victims for personal expenditures such as mortgage payments, groceries, and other household expenses. Moss is not scheduled for release until May 17, 2017. See his sentencing press release. Moss pleaded guilty in September 2011, to one count of commodities fraud for engaging in a $1.5 million Ponzi scheme. For more information, click here.

On November 20, 2012, the Securities Division of the North Carolina Department of the Secretary of State issued a Temporary Order to Cease and Desist to Rondell Scott Hedrick and Hedrick Consulting, Incorporated. Rondell Scott Hedrick and Hedrick Consulting, Incorporated were ordered to cease and desist from offering for sale, soliciting offers to purchase or selling, in or from North Carolina, any securities unless and until such securities have been registered and Rondell Scott Hedrick and Hedrick Consulting, Incorporated become registered as a dealer or salesman of securities. The Temporary Order to Cease and Desist found that Rondell Scott Hedrick and Hedrick Consulting, Incorporated offered and sold investment contracts in transactions involving the purchase and sale of gold bars, in violation of the North Carolina Securities Act. The Temporary Order to Cease and Desist gives Respondents 30 days in which to request a hearing. If no such request is made during that time, the Temporary Order to Cease and Desist shall become final. For more information, click here.

On August 2, 2012, the Securities Division of the North Carolina Department of the Secretary of State, with the consent of Respondents, issued a Final Order against Edward D. Nowell and South Atlantic Capital Management Group, Inc. The Final Order ordered that each Respondent cease and desist from violating the registration requirements of Chapter 78C. The Final Order found, after an examination pursuant to N.C.G.S. § 18(e), that for a period of at least three years each Respondent conducted business as a person required to be registered under Chapter 78C while each Respondent was not registered thereunder. For more information, click here.

On May 9, 2012, the Securities Division of the North Carolina Department of the Secretary of State, with the consent of the respondent, issued a Final Order against BCG Securities, Inc., a Pennsylvania corporation. First, the Final Order ordered that BCG Securities, Inc. cease and desist from transacting into or from North Carolina: (a) securities business as a securities dealer, along with its securities salesmen, unless registered; and (b) business as an investment adviser unless registered. Second, the Final Order ordered that BCG Securities, Inc. cease and desist employing or utilizing, or both, associated securities salesmen who effect or attempt to effect securities transactions while such salesmen are not registered with the Securities Division. Third, the Final Order ordered that BCG Securities, Inc.cease and desist in failing to reasonably supervise its ecurities salesmen and in violating the registration and notice filing procedures for investment advisers. Fourth, the Final Order ordered that BCG Securities, Inc. take remedial steps including establishing and maintaining trade monitoring systems. The Final Order found that BCG Securities, Inc.: (a) transacted into or from North Carolina business as a securities dealer, along with its securities salesmen, while neither were registered with the Securities Division; (b) employed or utilized securities salesmen, whom effected or attempted to effect securities transactions into or from North Carolina, while such salesmen were not registered; (c) did not follow its internal standards pursuant to its written supervisory procedures; and (d) did not make a notice filing with the Securities Division as required by the North Carolina Investment Advisers Act (N.C.G.S. Chapter 78C). For more information, click here.

On March 29, 2012, the Securities Division of the North Carolina Department of the Secretary of State issued a Final Order to Cease and Desist against Ephren W. Taylor, City Capital Corporation, City Laundry Services, LLC, City Petroleum, LLC, and Clean Sweeps Holdings Group, LLC. The Final Order to Cease and Desist permanently ordered that Respondents shall cease and desist from offering for sale, soliciting offers to purchase or selling, in or from North Carolina, any securities, including but not limited to the securities of City Capital Corporation, City Laundry Services, LLC, City Petroleum, LLC, and Clean Sweeps Holdings Group, LLC. The Final Order to Cease and Desist finds that Ephren W. Taylor was not licensed to sell securities in North Carolina and City Capital Corporation, City Laundry Services, LLC, City Petroleum, LLC, and Clean Sweeps Holdings Group, LLCemployed unlicensed salespersons to offer and sell their securities, in violation of the North Carolina Securities Act. The Final Order to Cease and Desist also permanently ordered Respondents to cease and desist from making untrue statements of a material fact and omitting to state material facts in connection with the offer, sale or purchase of any security. For more information, click here.

On March 6, 2012, the Securities Division of the North Carolina Department of the Secretary of State issued a Final Order to Cease and Desist against Joseph Maurice DeBerry and Sweetwater Capital Management, LLC, a limited liability company formed in North Carolina. The Final Order to Cease and Desist permanently ordered that Respondents shall cease and desist from offering for sale, soliciting offers to purchase or selling, in or from North Carolina, any securities, including but not limited to investment contracts in the construction of student housing at privately owned colleges, in violation of the North Carolina Securities Act. The Final Order to Cease and Desist finds that Joseph Maurice DeBerry was not licensed to sell securities in North Carolina and Sweetwater Capital Management, LLC employed an unlicensed salesman to offer and sell its securities, in violation of the North Carolina Securities Act. The Final Order to Cease and Desist also permanently ordered Respondents to cease and desist from making untrue statements of a material fact and omitting to state material facts in connection with the offer, sale or purchase of any security. For more information, click here.

On February 8, 2012, Gary D. Martin, of St. Augustine, FL, pleaded guilty in federal court to conducting a money laundering conspiracy in connection with the $32.5 million Queen Shoals Ponzi scheme. (See also the 3/31/2011 entry for “Sidney S. Hanson”). Martin induced victims to invest in the scheme through a series of false and fraudulent representations, omissions of material facts, and deceptive half truths. Specifically, Martin falsely claimed that Queen Shoals Consultants, LLC (QSC) had over 20 years experience in financial services and international finance and that he had a vast background in financial services, including the silver, gold and foreign currency trading markets. In truth, Martin had no such experience, held no professional licenses related to finance or investments, and never had engaged in any silver, gold or foreign currency trading. Martin had also claimed that he invested his retirement life savings in Queen Shoals. In fact, Martin personally invested only $4,000 while QSC funneled victim funds solely into the Queen Shoals Ponzi scheme. He was sentenced to 10 years in prison and was ordered to pay $31,707,038 as restitution to the victims of the scheme. For more information, click here.

On January 17, 2012, the Securities Division of the North Carolina Department of the Secretary of State, with the consent of Frank S. Sparger, issued a Final Order re-instating the securities salesman and investment adviser representative registrations of Mr. Sparger, and restricting those registrations for a period of three years. Mr. Sparger’s registrations were summarily suspended by the Division in connection with events that caused FINRA to impose a suspension of his FINRA membership. The underlying events took place some years ago at a now defunct brokerage firm. Mr. Sparger cooperated with FINRA and the Division in their separate proceedings For more information, click here.

On January 3, 2012, the Securities Division of the North Carolina Department of the Secretary of State issued a Temporary Order to Cease and Desist to Joseph Maurice DeBerry and Sweetwater Capital Management, LLC. Joseph Maurice DeBerry and Sweetwater Capital Management, LLC were ordered to cease and desist from offering for sale, soliciting offers to purchase or selling, in or from North Carolina, any securities unless and until such securities have been registered and Joseph Maurice DeBerry and Sweetwater Capital Management, LLC become registered as a dealer or salesman of securities. The Temporary Order to Cease and Desist found that Joseph Maurice DeBerry and Sweetwater Capital Management, LLC offered and sold investment contracts in the construction of student housing at privately owned colleges in violation of the North Carolina Securities Act. Joseph Maurice DeBerry and Sweetwater Capital Management, LLC were also ordered to cease and desist from making untrue statements of a material fact and omissions of material facts in connection with the offer, sale or purchase of any security. The Temporary Order to Cease and Desist gives Respondents 30 days in which to request a hearing. If no such request is made during that time, the Temporary Order to Cease and Desist shall become final. For more information, click here.

On November 30, 2011, the Securities Division of the North Carolina Department of the Secretary of State issued a Temporary Order to Cease and Desist to Ephren W. Taylor, City Capital Corporation, City Laundry Services, LLC, City Petroleum, LLC, and Clean Sweeps Holdings Group, LLC.Respondents were ordered to cease and desist from offering for sale, soliciting offers to purchase or selling, in or from North Carolina, any securities unless and until such securities have been registered and Ephren W. Taylor, City Capital Corporation, City Laundry Services, LLC, City Petroleum, LLC, and Clean Sweeps Holdings Group, LLC become registered as a dealer or salesman of securities. The Temporary Order to Cease and Desist found that Ephren W. Taylor and City Capital Corporation offered and sold investment contracts in the enterprise of purchasing, rehabilitating and selling of homes. Additionally, the Temporary Order to Cease and Desist found that Ephren W. Taylor, City Capital Corporation, City Laundry Services, LLC and City Petroleum, LLC offered and sold promissory notes to investors to be placed in self-directed IRA accounts with City Capital Corporation at The Equity Trust Company. Finally, the Temporary Order to Cease and Desist found that Ephren W. Taylor and Clean Sweeps Holdings Group, LLC offered and sold investment contracts in the enterprise of investing in a sweepstakes machine. Respondents were also ordered to cease and desist from making untrue statements of a material fact and omissions of material facts in connection with the offer, sale or purchase of any security. The Temporary Order to Cease and Desist gives Respondents 30 days in which to request a hearing. If no such request is made during that time, the Temporary Order to Cease and Desist shall become final. For more information, click here.

On November 3, 2011, the Securities Division of the North Carolina Department of the Secretary of State, with the consent of the respondents, issued a Final Order against Capital Management Partners, LLC, The North Carolina Center for Retirement and Estate Planning, LLC, and Kevin Edward Sullivan. It was ordered and agreed that the applications of Capital Management Partners, LLC and Kevin Edward Sullivan were denied. It was also ordered and agreed that respondents would not apply with the Securities Division again before July 11, 2014. Respondents were also ordered to cease and desist from violating any statute, rule or regulation under the NC Securities Act or Investment Advisers Act. For more information, click here.

On October 10, 2011, the Securities Division of the North Carolina Department of the Secretary of State issued a Final Order By Consent revoking the securities salesman registration of Charles Mark Hall, a resident of Johnston County. In May 2011, Mr. Hall entered a plea of guilty in the Superior Court of Johnston County to criminal charges of embezzlement arising from the conduct of his business as an insurance broker and a securities salesman prior to and during 2009. Mr. Hall was sentenced a term in state prison of at least 13 years. For more information, click here.

On September 27, 2011, the Securities Division of the North Carolina Department of the Secretary of State issued a Final Order to Cease and Desist against respondents Carolyn W. Grant and Omega Property Group, LLC. The Final Order to Cease and Desist permanently ordered that Respondents shall cease and desist from offering for sale, soliciting offers to purchase, or selling, in or from North Carolina, promissory notes or any other security unless and until such securities and Respondents have been registered under the Securities Act. The Final Order to Cease and Desist also permanently ordered Respondents from making untrue statements of a material fact in connection with the offer, sale or purchase of any security. For more information, click here.

On September 22, 2011, the Securities Division of the North Carolina Department of the Secretary of State, with the consent of Sherwood Randy Smith, a resident of Pitt County, and Consolidated Work Industries, Inc., a North Carolina corporation, issued a Final Order against Smith and Consolidated Work Industries, Inc. Smith and Consolidated Work Industries, Inc. were ordered to cease and desist from offering to sell or selling securities of any kind in the State of North Carolina, including, but not limited to, participation in the expected proceeds from the release of funds from any “off shore” account, promissory notes, stocks, or the securities offered by any other entity, to persons residing or located in the State of North Carolina, without first complying with the North Carolina Securities Act. The Final Order found that Smith and Consolidated Work Industries, Inc. were selling unregistered securities in violation of the North Carolina Securities Act. For more information, click here.

On September 19, 2011, the Securities Division of the North Carolina Department of the Secretary of State, issued a Final Order Revoking the securities salesman and investment adviser registrations of Christopher B. Mintz, formerly a resident of Wake County. In 2009 Mr. Mintz entered a plea of guilty in the United States District Court for the Eastern District of North Carolina to a federal charge of fraud by an investment adviser and was sentenced to a term in federal prison. For more information, click here.

On August 4, 2011, the Securities Division of the North Carolina Department of the Secretary of State issued a Temporary Order to Cease and Desist to Carolyn W. Grant and Omega Property Group, LLC. Carolyn W. Grant and Omega Property Group, LLC were ordered to cease and desist from offering for sale, soliciting offers to purchase, or selling in or from North Carolina, promissory notes or any other security unless and until such securities have been registered and Carolyn W. Grant and Omega Property Group, LLC become registered as a dealer or salesman of securities. Carolyn W. Grant and Omega Property Group, LLC were also ordered to cease and desist from making untrue statements of a material fact in connection with the offer, sale or purchase of any security. The Temporary Order gives respondents 30 days in which to request a hearing. If no such request is made during that time, the Temporary Order To Cease And Desist shall become final. For more information, click here.

On July 15, 2011, the NC Department of the Secretary of State announced that Dennis Todd Hagemann, of Raleigh, NC, pleaded guilty to 12 felony counts of securities fraud. He was sentenced to a minimum of 146-194 months in prison and was ordered to pay $911,000 restitution to his victims. Hagemann lured at least ten victims to invest $980,000 with his foreign currency (FOREX) hedge fund company, Yellowstone Partners, Inc., with promises of very high rates of return. He told at least one investor that he produced 100% returns each week. However, evidence showed that Hagemann was not successful in forex trading and never traded the investors’ funds as represented. Instead, he used investors’ money to pay back previous investors and converted investors’ funds to his personal use. For more information, please read our press release. On March 10, 2011, in a case brought by the US Commodity Futures Trading Commission (CFTC), the U.S. District Court for the Eastern District of North Carolina ordered Hagemann and his company to pay more than $1.6 million in restitution and civil monetary penalties for defrauding investors in a foreign currency (forex) Ponzi scheme. For more information, click here.

On June 20, 2011, the Securities Division of the North Carolina Department of the Secretary of State, with the consent of Claude D. McDougal, a resident of Mecklenburg County, and US Financial Alliance Consultants, LLC, a North Carolina limited liability company, issued a Final Order against McDougaland US Financial Alliance Consultants, LLC. McDougal and US Financial Alliance Consultants, LLC were ordered to cease and desist from offering for sale, soliciting offers to purchase, or selling promissory notes or other securities in violation of the North Carolina Securities Act. The Final Order found that McDougal and US Financial Alliance Consultants, LLC were not licensed to sell securities and were selling unregistered securities, in violation of the North Carolina Securities Act. For more information, click here.

On June 14, 2011, the Securities Division of the North Carolina Department of the Secretary of State, with the consent of Jotham Walker Pruitt, a resident of Durham County, North Carolina; Cinchpoint, Inc. d/b/a Cinchpoint Financial Services, a North Carolina Corporation; and Ramses Capital Partners, LLC, a Delaware limited liability company; issued a Final Order in which the respective registrations of Mr. Pruitt and Cinchpoint, Inc. as an investment advisor representative and investment advisor were revoked. Mr. Pruitt, Cinchpoint, Inc. and Ramses Capital Partners, LLC were ordered to cease and desist from violating any statute, rule or regulation under the North Carolina Securities Act or Investment Advisers Act. The Final Order allows Mr. Pruitt to apply for registration as a securities salesman and/or investment adviser representative under supervision; however, Mr. Pruitt may not apply for registration as a principal of an investment advisor or securities dealer before March 2, 2014. For more information, click here.

On June 3, 2011, the Securities Division of the North Carolina Department of the Secretary of State issued a Final Order to Cease and Desist against Michael A. Smith, a resident of Castle Hayne, North Carolina. Smith was ordered to cease and desist from offering for sale, soliciting offers to purchase, or selling any securities, including securities of Carr Miller Capital, LLC, in violation of the North Carolina Securities Act. The Final Order found that Smith was not registered to sell securities in North Carolina and that Smith was selling unregistered securities of Carr Miller Capital, LLC, in violation of the North Carolina Securities Act. For more information, click here.

On March 31, 2011, Sidney S. Hanson of Charlotte, NC, was sentenced by the the U.S. District Court for the Western District of North Carolina to 22 years in federal prison, to be followed by 3 years of supervised release, for his role in a $32.5 million Ponzi scheme that bilked investors, many of whom were elderly, by falsely promising investors yearly returns of up to 30 percent. The returns allegedly were to be generated by a diversified portfolio of treasury bills, precious metals, and foreign currency. Effected through his companies, Queen Shoals, LLC, Queen Shoals II, LLC, and Select Fund, LLC, his scam was crafted to appeal to the deeply held religious beliefs of his victims. For more information, please read the press release. On November 1, 2011, the same Court order Hanson and his companies to pay $24 million in restitution and civil monetary penalties (press release). Hanson originally pleaded guilty to charges of securities fraud, money laundering, and mail fraud on July 29, 2009 (see press release). (See also the 2/8/2012 entry for “Gary D. Martin”.) For more information, click here.

On March 8, 2011, the Securities Division of the North Carolina Department of the Secretary of State and E*Trade Securities LLC reached settlement in the matter of Auction Rate Securities products sold by the company to investors in North Carolina. The Final Consent Order was signed by Hearing Officer Sidney S. Eagles, Jr. For more information, click here.

On February 11, 2011, the Securities Division of the North Carolina Department of the Secretary of State, issued a Temporary Cease and Desist Order directing Michael A. Smith, a resident of Castle Hayne, North Carolina, and Carr Miller Capital, LLC, a New Jersey limited liability company, to cease and desist from offering to sell or selling securities, including but not limited to promissory notes, in violation of the North Carolina Securities Act. The temporary order finds that Carr Miller Capital and Smith sold unregistered promissory notes, that Carr Miller acted as an unregistered securities dealer, and that Smith acted as an unregistered salesman, in violation of the Securities Act. The temporary order directs the respondents to immediately cease and desist from such practices. For more information, click here.

On February 9, 2011, the Securities Division of the North Carolina Department of the Secretary of State issued a Temporary Cease and Desist Order directing PMC Strategy, LLC, a limited liability company formed in North Carolina, and its directors, agents, and other persons in active concert and participation with PMC Strategy, LLC to cease and desist from offering to sell or selling unregistered securities, including but not limited to investments in the foreign currency market, in violation of the North Carolina Securities Act. The temporary order further finds that PMC Strategy, LLC was not licensed to sell securities in North Carolina in violation of the North Carolina Securities Act. The temporary order directs the respondents to immediately cease and desist from such practices. For more information, click here.

On January 14, 2011, the Securities Division of the North Carolina Department of the Secretary of State issued a Temporary Cease and Desist Order directing Claude D. McDougal, a resident of Mecklenburg County, and US Financial Alliance Consultants, LLC, a North Carolina limited liability company, to cease and desist from offering to sell or selling securities, including but not limited to promissory notes, in violation of the North Carolina Securities Act. The temporary order finds that McDougal and US Financial Alliance Consultants, LLC were not licensed to sell securities and were selling unregistered securities, in violation of the North Carolina Securities Act. The Order directs McDougal and US Financial Alliance Consultants, LLC to immediately cease and desist from such practices. McDougaland US Financial Alliance Consultants, LLC have requested a hearing in this matter. For more information, click here.

On October 22, 2010, the Securities Division of the North Carolina Department of the Secretary of State summarily suspended Aspire Private Capital, L.L.C. and John Bryan Philpott from transacting business as a Registered Investment Adviser and Investment Adviser representative, respectively. On November 19, 2010, the Securities Division, with the consent of Aspire Private Capital and Mr. Philpott, issued a Final Order resolving the summary suspension. Aspire Private Capital and Mr. Philpott were ordered to file an amended Form ADV, pay $250.00 in settlement of the securities investigation, and to cease and desist from violating any statute, rule, or regulation promulgated under the North Carolina Investment Advisers Act. For more information, click here.

On March 24, 2010, the Securities Division of the North Carolina Department of the Secretary of State, with the consent of Aspire Wealth Management, Inc, a North Carolina corporation, John Bryan Philpott a resident of Mecklenburg County, North Carolina, and Todd Andrew Witt a resident of Mecklenburg County, North Carolina, issued a Final Order in which Aspire, Mr. Philpott and Mr. Wittwere ordered to cease and desist from transacting business in this State as a dealer or salesman in violation of the North Carolina Securities Act; and further ordered to cease and desist from transacting business in this State as investment advisers/investment adviser representatives in violation of the North Carolina Investment Advisers Act. For more information, click here.

On March 2, 2010, the Securities Division of the North Carolina Department of the Secretary of State, obtained from the Securities Administrator an Order of Summary Suspension for the investment adviser registration of Cinchpoint, Inc., d/b/a Cinchpoint Financial Services, and the investment adviser representative registration of Jotham Walker Pruitt, both based in Durham, North Carolina. The Administrator also issued a Temporary Cease and Desist Order directing Cinchpoint, Pruitt and Ramses Capital Partners, LLC, to cease and desist from offering to sell or selling securities, including but not limited to interests in Ramses, in violation of the North Carolina Securities Act. For more information, click here.

On January 19, 2010, The Securities Division filed an Administrative Petition seeking to revoke or suspend the North Carolina security dealer registration of E*Trade Securities, LLC. The Administrative Petition contains allegations of misconduct by E*Trade in the offer and sale of Auction Rate Securities (ARS) to North Carolina residents between 2005 and 2008. E*Trade has a right to an administrative hearing before this matter is concluded. The Division has cooperated with the North American Securities Administrators Association ARS Task Force in the Task Force investigation into the collapse of the ARS market in 2008. For more information, click here.

On January 6, 2010, the Securities Division of the North Carolina Department of the Secretary of State issued a Final Order to Cease and Desist directing Mason Barnes, Bradley Kirk Turner and Kentucky Mountain View Petroleum, Incorporated, a corporation formed in California, to cease and desist from offering to sell or selling securities, including but not limited to investment contracts in oil and gas exploration, in violation of the North Carolina Securities Act. The Final Order finds that Barnes and Turner were not licensed to sell securities in North Carolina and Kentucky Mountain View Petroleum, Inc. employed unlicensed salesmen to offer and sell their securities, in violation of the North Carolina Securities Act, and directs that the respondents immediately cease and desist such practices. For more information, click here.

On January 4, 2010, the Securities Division of the North Carolina Department of the Secretary of State, with the consent of Don G. Angell, Sr. , a resident of Forsyth County, North Carolina, issued a Final Order, with the consent of Mr. Angell , and in which Mr. Angell was ordered to cease and desist from offering to sell or selling securities in violation of the North Carolina Securities Act, including, but not limited to, promissory notes issued by Mr. Angell . Mr. Angell had not registered or filed for any exemption from registration with the Division for his promissory notes. For more information, click here.

On December 23, 2009, the Securities Division of the North Carolina Department of the Secretary of State, issued a Final Order To Cease and Desist directing Sean F. Mescall, a resident of Iredell County, to cease and desist from offering to sell or selling securities, including, but not limited to foreign currency exchange accounts, issued by Mescall and CapitalStreet Financial, in violation of the North Carolina Securities Act. The Final Order finds that Respondent Mescall sold unregistered securities, among other violations of the North Carolina Securities Act, and directs that he immediately cease and desist from such practices. Sean F. Mescal is awaiting trial in Mecklenburg County on several felony charges of violating the North Carolina Securities Act. CapitalStreet Financial is under the control of a receiver appointed by the United States District Court for the Western District of North Carolina in a civil action brought by the United States Commodities Futures Trading Commission. For more information, click here.

On November 2, 2009, the Securities Division of the North Carolina Department of the Secretary of State issued a Temporary Cease and Desist Order directing Mason Barnes, Bradley Kirk Turner and Kentucky Mountain View Petroleum, Incorporated , a corporation formed in California, to cease and desist from offering to sell or selling securities, including but not limited to investment contracts in oil and gas exploration, in violation of the North Carolina Securities Act. The temporary order finds that Barnesand Turner were not licensed to sell securities in North Carolina and Kentucky Mountain View Petroleum, Inc. employed unlicensed salesmen to offer and sell their securities, in violation of the North Carolina Securities Act, and directs that the respondents immediately cease and desist such practices. For more information, click here.

On October 20, 2009, the Securities Division of the North Carolina Department of the Secretary of State, with the consent of Prosper Marketplace, Inc. , issued an Administrative Final Order by Consent in which Prosper was ordered to cease and desist from offering to sell or selling its securities in violation of the North Carolina Securities Act. Prosper also agreed to and did make a contribution of $21,780.00 to the North Carolina Investor Education and Protection Fund. The Division and securities regulators of other states, cooperating through a working group organized by the North American Securities Administrators Association (NASAA), investigated the business conducted by Prosper between 2006 and October 2008. The NASAA group negotiated a national settlement in which the Division and Prosper participated. For more information, click here.

On September 11, 2009, the Securities Division of the North Carolina Department of the Secretary of State, issued an Order of Summary Suspension of any registration, right to register, transfer or renew a registration as a securities salesman of Charles Mark Hall of Smithfield, North Carolina. The Order of Summary Suspension finds that Respondent Hall was terminated by the securities dealer with whom he was affiliated after admitting to firm officials that he had misappropriated customer funds and is imposed during the pending administrative proceedings which will decide whether Respondent’s rights with regard to registration should be revoked. For more information, click here.

On September 9, 2009, Sean Fitzgerald Mescall of Denver, NC, was arrested (press release) and ultimately convicted on December 6, 2012 of securities fraud, wire fraud and money laundering, and was sentenced to 195 months in prison, and ordered to pay $1,248,812.09 as restitution to his victims. Records show that from 2006 to 2010 Mescall executed a Ponzi scheme by inducing over 119 investors in Charlotte and elsewhere to invest more than $1.5 million in his investment company, Capitalstreet Financial, LLC (CSF), falsely representing that their money would be invested in the foreign currency market (FOREX). Mescall lied to his victims about his professional background and credentials, and about the nature of CSF. Investors were promised investors 60-80% annual returns, but instead Mescall used a substantial amount of investor money to pay for personal expenses unrelated to any foreign exchange. Most of the victims were elderly and the funds they invested were most, if not all, of their life savings. For more information, please see the press release issued by the Commodity Futures Trading Commission. The Securities Division of the North Carolina Department of the Secretary of State also issued a Temporary Cease and Desist Order directing Mescall and his company to cease and desist from offering to sell or selling securities For more information, click here.

On June 2, 2009, the Securities Division of the North Carolina Department of the Secretary of State, issued a Final Order To Cease and Desist directing S. Dean Martin , a resident of Iredell County, D. Martin Enterprises, Inc. , a North Carolina corporation based in Iredell County, and DM Ventures, LLC , a Nevada limited liability company operated in Iredell County, North Carolina, to cease and desist from offering to sell or selling securities, including but not limited to promissory notes or similar agreements issued by any of them, in violation of the North Carolina Securities Act. The Final Order finds that Respondents have sold unregistered promissory notes, among other violations of the North Carolina Securities Act, and directs that the respondents permanently cease and desist from such practices. For more information, click here.

On May 27, 2009, the Securities Division of the North Carolina Department of the Secretary of State, issued a Temporary Cease and Desist Order directing Sidney Stanton Hanson and Charlotte Morrow Hanson , residents of Mecklenburg County, and Queen Shoals Group, LLC, Queen Shoals, LLC, and Queen Shoals II, LLC , entities not authorized to do business in North Carolina but operated by the Hansons in Mecklenburg County, North Carolina, to cease and desist from offering to sell or selling securities, including but not limited to promissory notes or similar agreements issued by any of them, in violation of the North Carolina Securities Act. The temporary order finds that Respondents have sold unregistered promissory notes, and have acted as unregistered securities dealers, violations of the North Carolina Securities Act, and directs that the respondents immediately cease and desist from such practices. For more information, click here.

On March 3, 2009, the Securities Division of the North Carolina Department of the Secretary of State issued a Temporary Cease and Desist Order directing S. Dean Martin , a resident of Iredell County, D. Martin Enterprises, Inc. , a North Carolina corporation based in Iredell County, and D M Ventures, LLC a Nevada limited liability company operated in Iredell County, North Carolina, to cease and desist from offering to sell or selling securities, including but not limited to promissory notes or similar agreements issued by any of them, in violation of the North Carolina Securities Act. The temporary order finds that Respondents have sold unregistered promissory notes, among other violations of the North Carolina Securities Act, and directs that the respondents immediately cease and desist from such practices. For more information, click here.

On November 6, 2008, the Securities Division of the North Carolina Department of the Secretary of State issued a Temporary Cease and Desist Order directing Biltmore Financial Group, Inc. , a North Carolina corporation, and J. V. Huffman Jr. , the primary owner of Biltmore Financial Group and a North Carolina resident, to cease and desist from offering to sell or selling securities, including but not limited to promissory notes issued by Biltmore Financial Group , in violation of the North Carolina Securities Act. The temporary order finds that Huffman and Biltmore Financial Group have sold unregistered promissory notes through persons not licensed to engage in securities transactions, among other violations of the North Carolina Securities Act, and directs that the respondents immediately cease and desist from such practices. For more information, click here.

On October 31, 2008, the Securities Division of the North Carolina Department of the Secretary of State, with the consent of Robert Lawrence Koppel, a resident of California, and Pro Financial Group, Inc., a California corporation, issued a Final Order in which Mr. Koppel and Pro Financial were ordered to cease and desist from offering to sell or selling securities to North Carolina residents in violation of the North Carolina Securities Act, including, but not limited to, the various financial products offered on a web site maintained by the Respondents. Neither Respondent admitted or denied the findings of the Administrator but did consent to the entry of the Order. For more information, click here.

On September 29, 2008 , the Securities Division of the North Carolina Department of the Secretary of State, with the consent of Red Dirt Rising, RLLP , a North Carolina Registered Limited Liability Partnership, and Gary E. Lewallen , a resident of Randolph County, North Carolina, issued a Final Order in which Red Dirt Rising and Mr. Lewallen were ordered to cease and desist from offering to sell or selling securities, including but not limited to limited liability partnership interests in Red Dirt Rising , in violation of the North Carolina Securities Act. Red Dirt Rising never registered its offering or filed for any exemption from registration with the Division. For more information, click here.

On September 29, 2008, the Division issued a Final Order making permanent the Temporary Order to Cease and Desist previously entered as to Charles Allen Smith and Sean Keating Helms . Mr. Smith and Mr. Helms failed to request a hearing after entry of the Temporary Order and thus have been permanently ordered to cease and desist from offering to sell or selling securities, including but not limited to promissory notes issued by IntelliCase , in violation of the North Carolina Securities Act. Neither Mr. Smith nor Mr. Helms ever held a license or registration to offer or sell securities in North Carolina. For more information, click here.

On September 12, 2008, the Securities Division of the North Carolina Department of the Secretary of State, with the consent of IntelliCase Corporation and R. Gordon Gooding , issued a Final Order in which IntelliCase and Mr. Gooding were ordered to cease and desist from offering to sell or selling securities, including but not limited to promissory notes issued by IntelliCase , in violation of the North Carolina Securities Act. IntelliCase never registered its offering or filed for any exemption from registration with the Division. For more information, click here.

On June 23, 2008, W. Walter Wilkins, the U.S. Attorney for the District of South Carolina, announced a 36-count indictment against JOSEPH B. BRUNSON, age 46, of Hopkins, SC, TIMOTHY MCQUEEN, age 50, of Blythewood, SC, and TONY POUGH, age 46, of Columbia, SC, known collectively as the “Three Hebrew Boys.” They were charged with 35 counts of mail fraud and 1 count of conspiracy to commit mail fraud. Earlier, on May 21, 2007, the Securities Division of the Department of the Secretary of State of North Carolina issued a Summary Order to Cease and Desist against these same individuals (see the Order below). On November 5, 2007, the United States District Court for South Carolina appointed Mr. Beattie B. Ashmore, Esquire, to serve as the Receiver for the seizure, protection and management of all assets owned or controlled by these individuals and a number of related companies and individuals. The following website, http://www.3hbreceiver.com/ , has been established for anyone who may have invested with Three Hebrew Boys and who wishes to file a claim for reimbursement if the defendants are found guilty." For more information, click here.

On June 5, 2008, the Securities Division of the North Carolina Department of the Secretary of State, issued a Temporary Cease and Desist Order directing IntelliCase Corporation , a Delaware corporation based in California, R. Gordon Gooding , the Chief Financial Officer of IntelliCase and a resident of California, Charles Allen Smith , a North Carolina resident, and Sean Keating Helms, a North Carolina resident, to cease and desist from offering to sell or selling securities, including but not limited to promissory notes issued by IntelliCase , in violation of the North Carolina Securities Act. The temporary order finds that Respondents have sold unregistered promissory notes through persons not licensed to engage in securities transactions, among other violations of the North Carolina Securities Act, and directs that the respondents immediately cease and desist from such practices. For more information, click here.

On June 4, 2008, the Securities Division of the North Carolina Department of the Secretary of State issued an Order of Summary Suspension suspending the North Carolina securities salesman registration of Respondent Samuel Vaughn Watkins . The summary order finds that Respondent has willfully violated or failed to comply with provisions of the North Carolina Securities Act and that Respondent has engaged in dishonest or unethical practices in the securities business and directs that the Respondents' securities salesman registration be immediately suspended. For more information, click here.

On June 3, 2008, the North Carolina Secretary of State's Securities Division issued a Final Order Denying Registration to American Capital Advisors L.L.C. and Richard Duane White . The Final Order Denying Registration ordered that Respondents shall be denied registration as investment advisers or investment adviser representatives in North Carolina. For more information, click here.

On May 22, 2008, the Securities Division of the North Carolina Department of the Secretary of State, with the consent of D. Trent Gourley , G & G, LLC , Gourley & Gourley, LLC , and Gourley and Associates, Inc. , issued a Final Order directing the named respondents to permanently cease and desist from offering to sell or selling securities in violation of the North Carolina Securities Act. Mr. Gourley , and the entities under his control, while based in Virginia, had offered and sold to North Carolina residents, limited liability company memberships with a guaranteed rate of return without first registering these securities with the Department as required by the North Carolina Securities Act. For more information, click here.

On May 7, 2008, the Securities Division of the North Carolina Department of the Secretary of State issued a Final Order to Cease and Desist to Paul Gwaz, aka Paul Gwazdauskas . This Order made permanent the terms of the Temporary Order to Cease and Desist issued on January 11, 2008, in this matter. Mr. Gwaz failed to object to the imposition of the Final Order or seek any hearing in this matter. Mr. Gwaz is restrained from offering to sell, or selling, interests in New Build Land Trust , or any other security, in North Carolina without first complying with the North Carolina Securities Act. For more information, click here.

On May 6, 2008, sentences were handed down in federal court to MICHAEL A. LOMAS, SCOTT B. HOLLENBECK, LAURINDA HOLOHAN, SUSAN KNIGHT, and ARTHUR J. ANDERSON, JR. , for their involvement in the Mobile Billboards case. For more information, click here.

On March 20, 2008, the North Carolina Secretary of State's Securities Division issued an Order of Summary Postponement to American Capital Advisors L.L.C. and Richard Duane White . The Order of Summary Postponement ordered pursuant to the authority contained in N.C.G.S. §78C-19(c) and78C-19(f), that, pending a final determination of this matter, the North Carolina registration of American Capital Advisors L.L.C. as an investment adviser be postponed. Also, it was further ordered that pending a final determination of this matter, the automatic North Carolina registrations as an investment adviser representative of Richard Duane White , and any and all other persons and entities occupying the status or function of executive officer or director of American Capital Advisors L.L.C. are postponed. For more information, click here.

On March 11, 2008, the Securities Division of the North Carolina Department of the Secretary of State, with the consent of Bryan Coats , issued a Final Order directing Mr. Coats to permanently cease and desist from offering to sell or selling securities in violation of the North Carolina Securities Act. Mr. Coats, an insurance agent in North Carolina, had engaged in the offer and sale of unregistered securities in the form of promissory notes from motion picture production promoters. For more information, click here.

On March 11, 2008, the North Carolina Secretary of State's Securities Division issued a Consent Order to Cease and Desist to Richard Duane White . The Consent Order ordered Richard Duane White to immediately cease and desist from offering for sale, soliciting offers to purchase, or selling, in or from North Carolina, investments in ETS Payphones, Inc., Evergreen Security, Ltd, Worldwide Income Partners, Inc or any other securities of any issuer, howsoever denominated, unless and until such securities have been registered pursuant to the provisions of the North Carolina Securities Act or such securities or transactions are exempt from such registration; and effecting securities transactions with a customer not recorded on the regular books or records of his dealer unless the transactions are disclosed to and authorized in writing by the dealer prior to execution of the transactions. For more information, click here.

On March 4, 2008, the North Carolina Secretary of State's Securities Division issued a Final Order to cease and desist to Lineberry & Company, Inc. and David W. Lineberry . The Final Order ordered Lineberry & Company, Inc. and David W. Lineberry to permanently cease and desist from i) offering for sale, soliciting offers to purchase, or selling, in or from North Carolina, securities of Lineberry & Company, Inc. or any other security of any issuer in violation of N.C.G.S. §78A-24; and ii) transacting business in North Carolina as a dealer or salesman in violation of §78A-36; and iii) in connection with the offer, sale or purchase of any security, making any untrue statement of a material fact or omitting to state material facts necessary in order to make statements made, in light of the circumstances under which such statements were made, not misleading; and iv) engaging in any act, practice or course of business which operates or would operate as a fraud or deceit upon any person; and v) violating any section of the North Carolina Securities Act and any rule or regulation promulgated under the North Carolina Securities Act. For more information, click here.

On February 29, 2008, the North Carolina Securities Division issued a Temporary Order to Cease and Desist to Tyrone William "Cauzae" McCall, Terrilyn Bryant McCall, and MBG Global, LLC . The Temporary Order ordered the McCalls and MBG Global, LLC to immediately cease and desist from offering for sale, soliciting offers to purchase, or selling any securities, or acting as investment advisers, or offering to provide investment advisory services, or engaging in the business of investment advisers, either in or from North Carolina, unless and until any such securities are properly registered pursuant to the provisions of the North Carolina Securities Act and unless and until the McCalls and MBG Global, LLC ., are properly registered under both the North Carolina Securities Act and the North Carolina Investment Advisers Act. For more information, click here.

On January 11, 2008, the North Carolina Securities Division issued a Temporary Order to Cease and Desist to Paul Gwaz . The Temporary Order ordered Paul Gwaz, aka Paul Gwazdauskas , to immediately cease and desist from offering for sale, soliciting offers to purchase or selling, in or from North Carolina, interests in New Build Land Trust or any security of any issuer, unless and until such securities have been registered pursuant to the provisions of the North Carolina Securities Act and from offering for sale, soliciting offers to purchase, or selling, in or from North Carolina, securities of Learn Waterhouse, Inc. or any security of any issuer, unless and until he becomes registered as a dealer or salesman of securities pursuant to the North Carolina Securities Act. For more information, click here.

On May 6, 2008, Senior United States District Judge W. Earl Britt sentenced five defendants in the Mobile Billboards scheme. MICHAEL A. LOMAS , age unknown, of Pasadena, California, received 240 months’ imprisonment with 3 years supervised release; SCOTT B. HOLLENBECK , 53, of Orlando, Florida received 168 months’ imprisonment with 3 years supervised release following his term of confinement; LAURINDA HOLOHAN , 63, of Concord, Ohio, received 76 months’ imprisonment with 3 years supervised release; SUSAN KNIGHT , 48, of Eastlake, Ohio, received 30 months’ imprisonment with 2 years supervised release; and ARTHUR J. ANDERSON, JR. , 49, of Raleigh, North Carolina, received 60 months’ imprisonment with 3 years supervised release. Investigation of the case was conducted by the United States Postal Inspection Service, the Federal Bureau of Investigation, and the North Carolina Department of the Secretary of State, Securities Division. For more information, click here.

On February 6, 2008, a jury in Raleigh, North Carolina convicted SCOTT B. HOLLENBECK , 53, of Orlando, Florida and LAURINDA HOLOHAN , 63, of Concord, Ohio of conspiracy and 12 of 14 counts charging mail fraud. BARRY C. MALONEY , 65, of Bethesda, Maryland was acquitted on all counts. Three others had been charged and previously pled guilty in this case, United States v. Lomas et al., 5:07-CR-117-BR: MICHAEL A. LOMAS , age unknown, of Pasadena, California; SUSAN KNIGHT , 48, of Eastlake, Ohio; and ARTHUR J. ANDERSON, JR. , 49, of Raleigh, North Carolina. A seventh defendant, MICHAEL L. YOUNG , 61, is a fugitive from justice and is believed to be residing in the United Arab Emirates. Investigation of the case, which is ongoing, is being conducted by the United States Postal Inspection Service, the Federal Bureau of Investigation, and the North Carolina Department of the Secretary of State, Securities Division. For more information, click here.

On December 5, 2007, the North Carolina Secretary of State's Securities Division issued a Final Order to Cease and Desist to Arthur Kenneth Weaver, Jr. and Rowan Health and Fitness Ltd. dba “GX Fitness and Wellness”. The Final Order ordered Arthur Kenneth Weaver, Jr. and Rowan Health and Fitness Ltd. dba “GX Fitness and Wellness” to permanently cease and desist from offering for sale, soliciting offers to purchase, or selling securities of Rowan Health and Fitness Ltd. and selling any securities of any issuer in violation of §§78A-8, and 78A-24 of the North Carolina Securities Act For more information, click here.

On November 30, 2007, the North Carolina Secretary of State's Securities Division issued a Consent Order to Cease and Desist to Leonard Jackson . The Consent Order ordered Leonard Jackson to cease and desist from offering for sale, soliciting offers to purchase, or selling, in or from North Carolina, stock and stock options of JEL Company and any other securities of any issuer, unless and until such securities have been registered pursuant to the provisions of the North Carolina Securities Act and from offering for sale, soliciting offers to purchase, or selling, in or from North Carolina, stock or stock options of JEL Company or securities of any issuer, unless and until he becomes registered as a dealer or salesman of securities pursuant to the North Carolina Securities Act. For more information, click here.

On October 26, 2007, the North Carolina Secretary of State's Securities Division issued a Consent Order to Cease and Desist to Ray S. Fisher, Jr. The Consent Order ordered Ray S. Fisher, Jr. to cease and desist from offering for sale, soliciting offers to purchase, or selling, in or from North Carolina, securities of Learn Waterhouse, Inc. and any security of any issuer, unless and until such securities have been registered pursuant to the provisions of the North Carolina Securities Act and from offering for sale, soliciting offers to purchase, or selling, in or from North Carolina, securities of Learn Waterhouse, Inc. or any security of any issuer, unless and until he becomes registered as a dealer or salesman of securities pursuant to the North Carolina Securities Act. For more information, click here.

On September 11, 2007, the North Carolina Secretary of State's Securities Division issued a Summary Order to Cease and Desist against Bryan Coats . The Summary Order ordered Bryan Coats to immediately cease and desist from offering for sale, soliciting offers to purchase, or selling securities in the form of “movie production loan” programs or selling any securities of any issuer in violation of §§78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On August 21, 2007, the North Carolina Secretary of State's Securities Division issued a Consent Order to Cease and Desist to Christopher Wallace Pustorino, dba Main Street Curio . The Consent Order ordered Christopher Wallace Pustorino, dba Main Street Curio to cease and desist immediately and permanently from, in connection with the offer, sale or purchase of any security, making any untrue statements of a material fact. For more information, click here.

On August 9, 2007, the North Carolina Secretary of State's Securities Division issued a Final Order to Cease and Desist to Joseph C. Franklin and Savant Interest, L.L.C . The Final Order ordered Joseph C. Franklin and Savant Interest, L.L.C. to cease and desist permanently from offering for sale, soliciting offers to purchase, or selling, in or from North Carolina, securities of Savant Interest, L.L.C. and any security of any issuer, unless and until such securities have been registered pursuant to the provisions of the North Carolina Securities Act and from offering for sale, soliciting offers to purchase, or selling, in or from North Carolina, securities of Savant Interest, L.L.C., or any security of any issuer, unless and until Respondents become registered as a dealer or salesman of securities pursuant to the North Carolina Securities Act. For more information, click here.

On July 26, 2007, the North Carolina Secretary of State's Securities Division issued a Final Order to Cease and Desist to Walter Ray Reinhardt . The Final Order ordered Walter Ray Reinhardt to cease and desist immediately and permanently from offering for sale, soliciting offers to purchase, or selling, in or from North Carolina, the securities of any issuer in violation of §§78A-24 of the North Carolina Securities Act. For more information, click here.

On July 11, 2007, the North Carolina Secretary of State's Securities Division issued a Final Order to Cease and Desist to Ronald Alan Bryant . The Final Order ordered that the Respondent immediately and permanently cease and desist from offering for sale, soliciting offers to purchase, or selling, in or from North Carolina securities of Financial Solutions, Inc. and any securities of any issuer in violation of § 78A-8, 78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On June 13, 2007, the North Carolina Secretary of State's Securities Division issued a Summary Order to Suspend the Offer and Sale to DAYSTAR OIL AND GAS CORPORATION . The Summary Order ordered DAYSTAR to suspend the offer and sale of its covered security referenced in DAYSTAR’SRegulation D 506 Notice filing filed with the Division until the Respondent has complied with the conditions set out in N.C.G.S. § 78A-31(b). For more information, click here.

On May 21, 2007, the North Carolina Secretary of State's Securities Division issued a Summary Order to Cease and Desist to 3 Hebrew Boys, L.L.C .; Capital Consortium Group, L.L.C .; Tony Pough ; Tim McQueen ; Joseph Brunson ; and Howard Lee Lattimore (collectively, the " Respondents "). The Summary Order ordered the Respondents to cease and desist immediately from offering for sale, soliciting offers to purchase, or selling securities of 3 Hebrew Boys, L.L.C. or of Capital Consortium Group, L.L.C. or any securities of any issuer in violation of §§78A-24 and 78A-36 of the North Carolina Securities Act. For more information, click here.

On April 25, 2007, the North Carolina Secretary of State, Securities Division issued a Final Order to Cease and Desist to Larry Wayne Sexton . The Final Order ordered Larry Wayne Sexton to permanently cease and desist from offering for sale, soliciting offers to purchase, or selling securities in or from North Carolina, securities in the form of investment contracts to purchase vacation units with a management agreement and any security of any issuer in violation of N.C.G.S. §§78A-24 and 78A-36. Further, Larry Wayne Sexton has been ordered to permanently cease and desist from, in connection with the offer, sale or purchase of any security, omitting to state material facts necessary in order to make statement made, in light of the circumstances under which such statements were made, not misleading and from violating any provision of Article 2, entitled Fraudulent and Other Prohibited Practices, of the North Carolina Securities Act. For more information, click here.

On April 25, 2007, the North Carolina Secretary of State, Securities Division issued a Final Order to Cease and Desist to Ronald G. Calvert . The Final Order ordered Ronald G. Calvert to permanently cease and desist from offering for sale, soliciting offers to purchase, or selling securities in or from North Carolina, securities in the form of investment contracts to purchase vacation units with a management agreement and any security of any issuer in violation of N.C.G.S §§78A-24 and from transacting business in this State as a dealer or salesman of securities in violation of N.C.G.S §§78A-36 of the North Carolina Securities Act. Further, Ronald G. Calvert has been ordered to permanently cease and desist from, in connection with the offer, sale, or purchase of any security, omitting to state material facts necessary in order to make statement made, in light of the circumstances under which such statements were made, not misleading and from violating any provision of Articles 2. entitled Fraudulent and Other Prohibited Practices, of the North Carolina Securities Act, specifically, Sections N.C.G.S §78A-8 through N.C.G.S §78A-14. For more information, click here.

On April 4, 2007, the North Carolina Secretary of State's, Securities Division issued a Final Order to Robert M. Lowe, Jr. dba Lowe Financial Planning . The Final Order ordered the Respondent to permanently cease and desist from transacting business in this State as an investment adviser without being registered to do so. Also, Robert M. Lowe agreed to pay $25,000 in settlement of the securities investigation. For more information, click here.

On March 23, 2007, the North Carolina Secretary of State's Securities Division issued a Summary Order to Cease and Desist to Lineberry & Company, Inc. and David W. Lineberry . The Division was made aware that the company was offering to sell securities through means of a newspaper advertisement without complying with the registration requirements of the North Carolina Securities Act. The Deputy Securities Administrator issued a Summary Order to the company to stop the advertisements. The case is still under review. For more information, click here.

On March 8, 2007, the North Carolina Secretary of State's Securities Division issued a Temporary Order to Cease and Desist to Walter Ray Reinhardt, Joseph C. Franklin and Savant Interest, L.L.C . The Temporary Order ordered Walter Ray Reinhardt, Joseph C. Franklin , and Savant Interest, L.L.C to cease and desist immediately from offering for sale, soliciting offers to purchase, or selling securities of Savant Interest, L.L.C or selling any securities of any issuer in violation of §§78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On March 5, 2007, the North Carolina Secretary of State's Securities Division issued a Final Order to Cease and Desist to Sports Dimensions, Inc. and Marc Hubbard . The Summary Order ordered Sports Dimensions , Inc. and Marc Hubbard to cease and desist immediately from offering for sale, soliciting offers to purchase, or selling securities in the form of investment contracts and promissory notes or selling any securities of any issuer in violation of §§78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On February 20, 2007, the North Carolina Secretary of State's, Securities Division issued a Temporary Order to Cease and Desist and Summary Suspension of Registration to Ronald Alan Bryant, Paul Carrier and Financial Solutions, Inc. The Temporary Order ordered that the Respondents immediately cease and desist from offering for sale, soliciting offers to purchase, or selling any securities or selling any securities of any issuer in violation of §§78A-8, 78A-24 and 78A-36 of the North Carolina Securities Act. For more information, click here.

On February 16, 2007, the North Carolina Secretary of State's, Securities Division entered into an order to Consent to Final Order to Cease and Desist with Southeastern Financial Resources, LLC and Mark Edward Patty . The Final Order ordered Southeastern Financial Resources and Mark Edward Patty to cease and desist immediately from offering for sale, soliciting offers to purchase, or selling any securities in the form of common stock and debentures issued by Titan Composites, Inc., or selling any securities of any issuer in violation of §§78A-24 and 78A-36 of the North Carolina Securities Act. For more information, click here.

On January 2, 2007, the North Carolina Secretary of State's Securities Division issued a Summary Order to Cease and Desist to Sports Dimensions, Inc. and Marc Hubbard . The Summary Order ordered Sports Dimensions , Inc. and Marc Hubbard to immediately cease and desist from offering for sale, soliciting offers to purchase, or selling securities in the form of investment contracts and promissory notes or selling any securities of any issuer in violation of §§78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On May 29, 2007, the U.S. Attorney for the Eastern District of North Carolina announced an eighteen-count Indictment charging seven individuals nationwide with what the Indictment alleges was "an extensive scheme to defraud individuals seeking financially secure retirements out of approximately seventy million dollars." The Indictment alleges that the seven defendants participated in a scheme to sell purported investments in "Mobile Billboards of America, Inc." Investigation of the case was conducted by the Federal Bureau of Investigation and the North Carolina Department of the Secretary of State, Securities Division. For more information, click here.

On April 2, 2007, Joe Jones pleaded guilty to 41 violations of the Securities Act and five charges of Obtaining Property by False Pretense. He was sentenced to a minimum of 20 years and a maximum of 26.25 years in the North Carolina Department of Corrections. For more information, click here.

On May 29, 2007, the U.S. Attorney for the Eastern District of North Carolina announced an eighteen-count Indictment charging seven individuals nationwide with what the Indictment alleges was "an extensive scheme to defraud individuals seeking financially secure retirements out of approximately seventy million dollars." The Indictment alleges that the seven defendants participated in a scheme to sell purported investments in "Mobile Billboards of America, Inc." Investigation of the case was conducted by the Federal Bureau of Investigation and the North Carolina Department of the Secretary of State, Securities Division. For more information, click here.

On May 29, 2007, the U.S. Attorney for the Eastern District of North Carolina announced an eighteen-count Indictment charging seven individuals nationwide with what the Indictment alleges was "an extensive scheme to defraud individuals seeking financially secure retirements out of approximately seventy million dollars." The Indictment alleges that the seven defendants participated in a scheme to sell purported investments in "Mobile Billboards of America, Inc." Investigation of the case was conducted by the Federal Bureau of Investigation and the North Carolina Department of the Secretary of State, Securities Division For more information, click here.

On December 14, 2006, the North Carolina Secretary of State, Securities Division issued a Consent Order to EFR Financial Services, LLC ; Roger Van Edwards ; Byron Keith Falls ; Terry Norris Renegar ; and Bryan Speas Davis . The Consent Order ordered the Respondents to immediately cease and desist from offering for sale, soliciting offers to purchase, or selling, in or from North Carolina, the securities of ACM Financial Trust, Inc. (formerly known as Atlantic Capital Management, Inc.) or any security of any issuer in violation of N.C.G.S. §§78A-8 and 78A-36. Respondents were also ordered to immediately cease and desist from transacting business in this State as an investment adviser representative unless and until said persons become registered as investment adviser representatives pursuant to the provisions of the North Carolina Investment Advisers Act and Respondents were also ordered to cease and desist from, in the solicitation of advisory clients, making any untrue statements of a material fact. Also, EFR Financial Services , LLC agreed to pay $20,000.00 in settlement of the securities investigation. For more information, click here.

On November 21, 2006, the North Carolina Secretary of State, Securities Division issued a Temporary Order to Cease and Desist to Larry Wayne Sexton . The Temporary Order ordered Larry Wayne Sexton to immediately cease and desist from offering for sale, soliciting offers to purchase, or selling securities in or from North Carolina, securities in the form of investment contracts to purchase vacation units with a management agreement and any security of any issuer unless and until such securities have been registered pursuant to N.C.G.S. §78A-24 and unless and until Larry Wayne Sexton becomes registered as a dealer or salesman of securities pursuant to N.C.G.S. §78A-36. Further, Larry Wayne Sexton has been ordered to immediately cease and desist from, in connection with the offer, sale or purchase of any security, omitting to state material facts necessary in order to make statement made, in light of the circumstances under which such statements were made, not misleading. For more information, click here.

On November 14 , 2006, the North Carolina Secretary of State, Securities Division issued a Temporary Order to Cease and Desist to Ronald G. Calvert . The Temporary Order ordered Ronald G. Calvert to immediately cease and desist from offering for sale, soliciting offers to purchase, or selling securities in or from North Carolina, securities in the form of investment contracts to purchase vacation units with a management agreement and any security of any issuer unless and until such securities have been registered pursuant to N.C.G.S. §78A-24 and unless and until Ronald G. Calvert becomes registered as a dealer or salesman of securities pursuant to N.C.G.S. §78A-36. Further, Ronald G. Calvert has been ordered to immediately cease and desist from, in connection with the offer, sale or purchase of any security, omitting to state material facts necessary in order to make statement made, in light of the circumstances under which such statements were made, not misleading For more information, click here.

On November 14, 2006, the North Carolina Secretary of State's Securities Division issued a Summary Order to Cease and Desist to Titan Composites, Inc., Bryan K. Noel, Christopher D. Hughes, Southeastern Financial Resources, LLC and Mark Edward Patty . The Summary Order ordered Titan Composites, Inc., Bryan K. Noel, Christopher D. Hughes, Southeastern Financial Resources, LLC and Mark Edward Patty to immediately cease and desist from offering for sale, soliciting offers to purchase, or selling securities in the form of Titan convertible subordinated debentures and Titan common stock or selling any securities of any issuer in violation of §§78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On November 8, 2006, the North Carolina Secretary of State's Securities Division entered into a Consent Order with Cornerstone Ministries Investments, Inc., Cecil A Brooks and John T. Ottinger. The Consent Order ordered is related to the unregistered sale of common stock and investments in the form of evidence of indebtedness by CMI to N.C. residents. The Consent Order included a written Offer of Rescission to all North Carolina investors who had invested during the relevant period of time of this Consent Order For more information, click here.

On September 11, 2006, the North Carolina Secretary of State's Securities Division issued a Final Order to Cease and Desist to James B. Wabel and Quality Life Financial, LLC . The Final Order ordered that Wabel and Quality Life Financial, LLC , permanently cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On August 26, 2006, the North Carolina Secretary of State's, Securities Division entered into a Consent Order with C. Wayne Joyner , Blue Ridge Motors, Inc. , and Blue Ridge Key Investments LLC . The Final Order ordered that C. Wayne Joyner , Blue Ridge Motors, Inc. , and Blue Ridge Key Investments LLC immediately cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-24, and 78A-36 of the North Carolina Securities Act. Further, the Respondents were ordered to immediately cease and desist from in connection with the offer, sale or purchase of any security, omitting to state material facts necessary in order to make statements made, in light of the circumstances under which such statements were made, not misleading. For more information, click here.

On August 22, 2006, the North Carolina Secretary of State's, Securities Division issued a Consent Order with Omni Advisor Group, Inc., SI 100, L.L.C. (formerly known as LB 100, L.L.C), and Brian P. McGuane . The Consent Orders related to the unregistered sale of viatical settlement contracts by Omni and Si 100 to N.C. residents in 2002. For more information, click here.

On August 22, 2006, the North Carolina Secretary of State's, Securities Division issued a Consent Order with Kevin E. Sullivan . The Consent Orders related to the unregistered sale of viatical settlement contracts by Omni and Si 100 to N.C. residents in 2002. For more information, click here.

On July 31, 2006, the North Carolina Secretary of State's, Securities Division issued a Findings of Fact, Conclusions of Law and Consent Order to Wachovia Capital Markets, LLC . The Consent Order stemmed from an investigation by the Division, together with other state regulators, into allegations of potential conflicts of interest between Wachovia's research analysts and investment bankers. The order provisions relate to failure to supervise employees and failure to preserve required books and records. For more information, click here.

On July 20, 2006, the North Carolina Secretary of State's, Securities Division issued a Summary Order to Cease and Desist to Blue Ridge Biofuels, LLC, Brian Euguene Winslett, and any and all other persons occupying the position of officer, director, agent or similar status, performing a similar function, or otherwise controlling Blue Ridge Biofuels, LLC. . Blue Ridge Biofuels filed a notice with the Securities Division that it was making a private offering in NC under Regulation D of the federal Securities Act of 1933. Upon closer examination, the Division found that the company had expanded its offerings to the Internet, which is considered the making of an offer of securities to the general public. The Deputy Securities Administrator issued a Summary Order to the company to stop the public offering. The case is still under review. For more information, click here.

On July 7, 2006, the North Carolina Secretary of State's, Securities Division issued a Final Order to Cease and Desist to LifeClicks, LLC and Charis Fay Johnson . The Final Orders superseded and replaced the Summary Order to Cease and Desist that was issued to the respondents on February 23, 2006 (see below). For more information, click here.

On June 29, 2006, the North Carolina Secretary of State's, Securities Division entered into a Consent Order with Brendle Shaffner Financial Advisors, LLC . The Consent Order ordered that Brendle Shaffner Financial Advisors, LLC immediately cease and desist from employing an investment adviser representative without ensuring the investment adviser representative is registered under the North Carolina Investment Advisers Act to act as an investment adviser representative on its behalf. For more information, click here.

On June 27, 2006, the North Carolina Secretary of State's, Securities Division entered into a Consent Order with John David Turner . The Consent Order ordered that John David Turner immediately cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer unless and until said securities are registered pursuant to §§78A-24 of the North Carolina Securities Act. The Respondent was also ordered to immediately cease and desist from in connection with the offer, sale or purchase of any security, omitting to state material facts necessary in order to make statements made, in light of the circumstances under which such statements were made, not misleader. Further, John David Turner agreed not to apply for registration as an investment adviser or securities dealer in North Carolina for 12 months following the issuance and entry of this Consent Order. For more information, click here.

On May 11, 2006, the North Carolina Secretary of State's, Securities Division entered into a Consent Order with John Willoughby Hearn, III . The Consent Order required John Willoughby Hearn, III to immediately cease and desist from transacting business in this State as an investment adviser representative on behalf of an investment adviser or an investment adviser covered under federal law without being registered to do so. For more information, click here.

On April 28, 2006, the North Carolina Secretary of State's, Securities Division issued a Temporary Order to Cease and Desist and Summary Suspension of Registration to John David Turner . The Temporary Order ordered that John David Turner immediately cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer unless and until said securities are registered pursuant to the provisions of the North Carolina Securities Act. The Respondent was also ordered to immediately cease and desist from in connection with the offer, sale or purchase of any security, omitting to state material facts necessary in order to make statements made, in light of the circumstances under which such statements were made, not misleader. It was further ordered that John David Turner's registration as an investment adviser is suspended. For more information, click here.

On March 14, 2006, the North Carolina Secretary of State's, Securities Division issued a Temporary Order to Cease and Desist and Summary Suspension of Registration to EFR Financial Services, LLC ; Roger Van Edwards, Byron Keith Falls ; Terry Norris Renegar ; and Bryan Speas Davis . The Temporary Order ordered that the Respondents immediately cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-8, 78A-24, and 78A-36 of the North Carolina Securities Act. Respondents were also ordered to immediately cease and desist from transacting business in this State as an investment adviser representative unless and until said persons become registered as investment adviser representatives pursuant to the provision of the North Carolina Investment Advisers Act. It was further ordered that EFR Financial Services, LLC's registration as an investment adviser is suspended. For more information, click here.

On March 13, 2006, the North Carolina Secretary of State's, Securities Division issued a Temporary Order to Cease and Desist to Brendle Shaffner Financial Advisors, LLC ; and John Willoughby Hearn, III . The Temporary Order ordered that John Willoughby Hearn, III immediately cease and desist from transacting business in this State as an investment adviser representative on behalf of Brendle Shaffner Financial Advisors, LLC. Further, the Temporary Order ordered that Brendle Shaffner Financial Advisors, LLC immediately cease and desist from employing and investment adviser representative unless the investment adviser representative is registered under the North Carolina Investment Advisers Act to act as an investment adviser representative on its behalf. For more information, click here.

On February 23, 2006, the North Carolina Secretary of State's, Securities Division issued a Summary Order to Cease and Desist to LifeClicks, LLC and Charis Fay Johnson . The Summary Order ordered LifeClicks, LLC and Charis Fay Johnson to immediately cease and desist from offering for sale, soliciting offers to purchase, or selling any securities until they are duly registered. For more information, click here.

On January 25, 2006, the North Carolina Secretary of State's, Securities Division entered into a Consent Order with Strategic Planning Corporation and Richard Michael Flanders. The Consent Order required the Respondents to immediately cease and desist all investment adviser activities until duly registered. For more information, click here.

On December 5, 2005, the North Carolina Secretary of State's, Securities Division entered into a Consent Order with Carolina Capital Consulting, Inc. and Brian H. Fenn . The Consent Order ordered superseded and replaced a Summary Order to Suspend Registration as to the Respondents. For more information, click here.

On November 18, 2005, the North Carolina Secretary of State's, Securities Division issued a Final Order to Cease and Desist to Paul Hopkins . The Final Order ordered that Paul Hopkins permanently cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On November 14, 2005, the North Carolina Secretary of State's, Securities Division entered into a Consent Order with Scott Harold Albertson, Sr. The Consent Order ordered that Scott Harold Albertson, Sr., immediately cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-8, 78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On October 28, 2005, the North Carolina Secretary of State's, Securities Division issued a Final Order to Cease and Desist to Ronnie Ward and Shelva Ward . The Final Order ordered that Ronnie Ward and Shelva Ward permanently cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On October 11, 2005, the North Carolina Secretary of State's, Securities Division issued a Final Order to Cease and Desist to Joel Teague . The Final Order ordered that Joel Teague permanently cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On September 22, 2005, the North Carolina Secretary of State's, Securities Division issued a Final Order to Cease and Desist to Hugh Thacker . The Final Order ordered that Hugh Thacker permanently cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On September 16, 2005, the North Carolina Secretary of State's, Securities Division issued a Final Order to Cease and Desist to James Matthew Bondurant, Stephen Keith Gilley, Timothy Lee Bradshaw and Alternative Financial Concepts, LLC . The Final Order ordered that the above permanently cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On September 8, 2005, the North Carolina Secretary of State's, Securities Division issued a Final Order to Cease and Desist to Stan Warm . The Final Order ordered that Stan Warm permanently cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On September 7, 2005, the North Carolina Secretary of State's, Securities Division issued a Final Order to Cease and Desist to: Click on individual name to see the order Arthur J. Anderson, Jr. Stephen W. Bradshaw Victor Graham Clarence J. Lyon Bryan Shepley Benjamin E. Sumner Kenneth D. Whitt The Final Order ordered that the above permanently cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On August 29, 2005, the North Carolina Secretary of State's, Securities Division issued a Final Order to Cease and Desist to Mobile Billboards of America, Inc. The Final Order ordered that Mobile Billboards of America, Inc., permanently cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On August 19, 2005, the North Carolina Secretary of State's, Securities Division issued a Final Order to Cease and Desist to Barrie Lange and Gary Walker . The Final Order ordered that Barrie Lange and Gary Walker permanently cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-24, and 78A-36 of the North Carolina Securities Act. Click on individual name to see the order For more information, click here.

On August 19, 2005, the North Carolina Secretary of State's, Securities Division issued a Final Order to Cease and Desist to Daniel S. Dark. The Final Order ordered that Daniel S. Dark permanently cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On August 19, 2005, the North Carolina Secretary of State's, Securities Division issued a Final Order to Cease and Desist to Levonda Leamon. The Final Order ordered that Levonda Leamon permanently cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On August 19, 2005, the North Carolina Secretary of State's, Securities Division issued a Final Order to Cease and Desist to Rebecca Plummer. The Final Order ordered that Rebecca Plummer permanently cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-24, and 78A-36 of the North Carolina Securities Act For more information, click here.

On August 19, 2005, the North Carolina Secretary of State's, Securities Division issued a Final Order to Cease and Desist to James Rainey. The Final Order ordered that James Rainey permanently cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On August 19, 2005, the North Carolina Secretary of State's, Securities Division issued a Final Order to Cease and Desist to Gary P. Walker. The Final Order ordered that Gary P. Walker permanently cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On June 15, 2005, the North Carolina Secretary of State's, Securities Division issued a Final Order to Cease and Desist to CHRIS WEST of Coats, N.C. The Final Order ordered that Chris West immediately cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-8, 78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On April 6, 2005, the North Carolina Secretary of State's, Securities Division issued a Final Order to Cease and Desist to TED WEST of Whiteville, N.C. The Final Order ordered that Ted West immediately cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-8, 78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On March 29, 2005, In the Matter of the North Carolina Securities Division vs. Ted West and West Insurance Agency of N.C. Inc., File No. 02-010-CC, the Securities Division took a voluntary dismissal against the corporation West Insurance Agency of N.C. Inc. and on March 31, 2005 an Order to vacate the summary cease and desist order was entered as to West Insurance Agency of N.C. Inc. Click here to see the Order For more information, click here.

On February 3, 2005, the North Carolina Secretary of States Securities Division issued a Summary Order To Cease And Desist to Ted West, of Whiteville, NC and West Insurance Agency of N.C., Inc., of Angier, NC. The Order alleged that these persons offered and sold securities in the form of a "Payphone Sale-and-Leaseback Program" to persons in North Carolina in violation of the laws requiring registration of securities offerings and registration of securities dealers For more information, click here.

On November 10, 2004, the North Carolina Secretary of State’s Securities Division issued a Final Order to Cease and Desist to Joe Jones & Associates and Joseph Lionel Jones of Rocky Mount, N.C. The Final Order ordered that Joseph Lionel Jones immediately cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§ 78A-8, 78A-24, and 78A-36 of the North Carolina Securities Act. For more information, click here.

On October 20, 2004, the North Carolina Secretary of State's, Securities Division issued a Final Order to Cease and Desist to SCOTT BRADLEY HOLLENBECK of Kernersville, N.C. The Final Order ordered that Scott Hollenbeck immediately cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-8, 78A-24, and 78A-36 of the North Carolina Securities Act For more information, click here.

On September 15, 2004, and September 22, 2004 the North Carolina Department of the Secretary of State, Securities Division issued a Temporary (Summary) Orders to Cease and Desist against 23 agents of Mobile Billboards of America, Inc. The Orders alleged that these persons offered and sold securities in the form of a “sale-and-leaseback program” to persons in North Carolina in violation of the laws requiring registration of securities offerings and registration of securities dealers. Copies of the Orders can be viewed by clicking below to see the Cease and Desist Order against: Arthur James Anderson, Jr. Danny R. Baxley Stephen W. Bradshaw Daniel S. Dark Mary Dean Victor Graham Paul Hopkins William Eric Isphording Barrie Lange Levonda Leamon Clarence J. Lyon Rebecca PlummerJames Rainey Dennis Raynor Bryan Shepley Benjamin E. Sumner Joel Teague Hugh Thacker Gary P. Walker Shelva Ward Stan Warm Kenneth D. Whitt For more information, click here.

On April 28, 2004, the North Carolina Secretary of State’s, Securities Division issued a Final Order To Cease And Desist to JOEY CARL MINDER of Burlington, N.C. The Final Order ordered, adjudged and decreed that Joey Carl Minder immediately cease and desist from offering for sale, soliciting offers to purchase, or selling any securities of any issuer in violation of §§78A-8, 78A-24 and 78A-36 of the North Carolina Securities Act For more information, click here.

On April 26, 2004, the North Carolina Secretary of State’s, Securities Division issued a Temporary (Summary) Order To Cease And Desist to SCOTT BRADLEY HOLLENBECK of Kernersville, N.C. The Order alleged that Scott Bradley Hollenbeck offered and sold securities in the form of a "sale-and-leaseback program" to persons in North Carolina in violation of the laws requiring registration of securities offerings and registration of securities dealers. For more information, click here.

On April 2, 2004, the North Carolina Secretary of State’s, Securities Division issued a Summary Order To Cease And Desist to Mobile Billboards of America, Inc., James Matthew Bondurant , Stephen Keith Gilley , Timothy Lee Bradshaw , Alternative Financial Concepts, LLC . The Order alleged that these persons offered and sold securities in the form of a "sale-and-leaseback program" to persons in North Carolina in violation of the laws requiring registration of securities offerings and registration of securities dealers For more information, click here.

On February 12, 2004, the North Carolina Secretary of State’s, Securities Division issued a Summary Order To Cease And Desist to TFH, INC . and WILLIAM MARTIN McNULTY, SR. of Boone, N.C. and to JOEY CARL MINDER of Burlington, N.C. The Order alleged that these persons offered and sold securities in the form of a "loan program" to persons in North Carolina in violation of the laws requiring registration of securities offerings and registration of securities dealers. For more information, click here.

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