Phoenix, Ariz. — The Arizona Corporation Commission ordered respondents Gary Martin of Phoenix and his affiliated company Reliant Income Properties, LLC (Reliant) to pay $25,000 in restitution and a $10,000 administrative penalty for selling unregistered securities in connection with a fictitious real estate investment.

The Commission found that Martin and Reliant were not registered to offer or sell investments in Arizona.  They misrepresented to an investor that Reliant owned property with tenants and an income stream that would provide revenue for investors when Reliant had no real assets, real estate or otherwise and no income.

Additionally, the Commission found that, although Reliant’s offering documents stated that investor monies would be set aside in an escrow account with a major bank until a certain amount was raised, Martin immediately began spending investor funds on expenses, such as rent to his mom, to Harley Davidson, credit card bills and salary for himself. 

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-21345A-24-0271.       

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