The Arizona Corporation Commission ordered respondent Robert Halverson of Scottsdale to pay $672,079 in restitution and a $20,000 administrative penalty for defrauding investors with an investment program involving E-commerce business.

The Corporation Commission found Halverson offered and sold securities to 51 investors, who were told they were investing in fully automated E-commerce businesses created and managed by Halverson and/or others. However, Halverson was not registered in Arizona to offer or sell securities.

The Commission found Halverson misrepresented that the E-commerce businesses would generate substantial daily revenue within a specified timeframe, when in fact, most of the prior investors did not receive the promised returns and the majority of the created E-commerce businesses either did not generate any revenue or only a nominal amount. Also, the Commission found Halverson failed to disclose to some of the investors that a portion of their investment funds would be used to pay settlement payments to prior investors or return payments to prior investors.

In settling this matter, Halverson admits to the Commission’s findings only for the purposes this proceeding and agrees to the entry of the consent order. Also, this matter includes four other respondents who have not settled.

All documents relating to this agenda item can be found in the Corporation Commission's online docket at https://edocket.azcc.gov and entering docket number S-21216A-22-0315.

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