News Release      
  For Immediate Release | 1-16-18      
  Media Contact | Holly Ward      
  Direct | 602-542-3847      
  E-Mail | hward@azcc.gov      
         
 
January Open Meeting Brief
 
 

PHOENIX — Arizona Corporation Commissioners held their monthly Open Meeting today to discuss various water, electric, and investment agenda items. Today’s agenda included Commissioner approval on extending time granted for an environmental certificate to a Gila Bend power company, a consolidation of two, nonresidential telecommunications providers, and cease and desist orders to several business entities for fraudulent investing. Here’s a look at some highlights in today’s Open Meeting Brief:

Delta FX Trade
The Commission ordered Delta FX Trade to pay a $15,000 administrative penalty for fraudulently offering unregistered investment contracts involving foreign currency exchange. Through a popular classified ad website, the Corporation Commission found Delta FX Trade promised guaranteed returns of 900% within ten days while failing to disclose that foreign currency exchange trading is extremely risky. Delta FX Trade did not request an administrative hearing and is not registered to offer or sell securities in Arizona.

James Stroup, GenTecnics, LLC, and ICorp, LLC
In a separate decision, the Corporation Commission levied a $50,000 administrative penalty against James E. Stroup and his affiliated companies for defrauding investors out of $684,120 to fund software and GPS-related technology that was non-existent. The Commission found Stroup used a large portion of investor funds for his personal expenses instead of designing and manufacturing the technology as promised. The Corporation Commission also found Stroup failed to tell investors that he was previously convicted of theft. Stroup did not request an administrative hearing.

Robert Nico Martinelli and Guardian Wealth Management, LLC
The Corporation Commission issued another decision, revoking the investment adviser representative license of Robert Nico Martinelli and his affiliated company for their dishonest and unethical conduct. The Corporation Commission ordered Martinelli and Guardian Wealth Management, LLC to pay a $6,000 administrative penalty for their violations. The Corporation Commission found Martinelli and his company filed licensure applications that were incomplete, inaccurate, and misleading. The Corporation Commission found Martinelli failed to disclose information to investment advisory clients. Martinelli did not request an administrative hearing.

Graham County Utilities/Eden Water Co.
The Corporation Commission approved the mutual transfer of service areas between Graham County Utilities, Inc. and Eden Water Company, Inc. Located in the Graham County area, Graham County Utilities, Inc. provides water service to nearly 1,250 customers and Eden Water Company, Inc. provides water service to nearly 140 customers. In June 2017, both companies filed a Joint Application to transfer portions of their Certificate of Convenience and Necessity to the other party. Following today’s vote of approval by Commissioners, both parties are directed to obtain franchises or permits from the appropriate county or municipal entity by the end of this year.

A complete list of today’s Open Meeting agenda items along with the full meeting broadcast may be found in the Live Broadcast archives at http://azcc.gov/livebroadcast.

Direct link to today’s agenda: http://bit.ly/2AIOKOS

 

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About us:
The Arizona Corporation Commission was established by the state’s constitution to regulate public utilities and business incorporation. The five Commissioners elected to the Corporation Commission oversee executive, legislative, and judicial proceedings on behalf of Arizonans when it comes to their water, electricity, telephone, and natural gas resources as well as the regulation of securities, pipeline, and railroad safety. To learn more about the Arizona Corporation Commission and its Commissioners, visit http://azcc.gov.