1300 W. Washington Street

Phoenix, AZ 85007-2996

 

 

Main: (602) 542-4242

Email: SecuritiesDiv@azcc.gov

Ask and Check
Before You Invest!

News_magnifying_glass

in Brief

Join Us for The COVIDEffect Virtual Event: “The COVID Effect” Launches the Boomers to Zoomers:

 

PHOENIX-The Arizona Corporation Commission’s Securities Division is partnering with the Investor Protection Trust, Detroit Public Television, and PBS Books to produce “The COVID Effect: Restoring Financial Wellness” virtual event to livestream on the Commission’s Facebook page, facebook.com/corpcommaz on Friday, March 26, 2021 at 11:00 a.m. (MST).

The COVID crisis has left people uncertain about the economy and with many questions about their personal financial security. “The COVID Effect: Restoring Financial Wellness” will feature qualified experts who will provide information and insight on financial well-being during COVID, financial recovery after COVID and preparing for the next challenge.

The event will be interactive, allowing participants to ask questions, submit comments and get answers in real time. After the live event, “The COVID Effect” will be available on the Corporation Commission’s website, www.azcc.gov/azinvestor and on WI65.org, along with a variety of tools and resources for savers and investors of all ages and at all stages of life. “The COVID Effect” is the first in a series of 12 Boomers to Zoomers: Building a Secure Path to Retirement virtual events.

“During the challenge of COVID, the Corporation Commission’s Securities Division continues its primary focus of protecting Arizona investors,” Chairwoman Lea Márquez-Peterson said. “We are pleased to partner with others who share the same goal of informing investors about how to secure their retirement funds.”

The COVID Effect: Restoring Financial Wellness virtual event will livestream on the Corporation Commission’s Facebook page, facebook.com/corpcommazon Friday,
March 26, 2021, at 11:00 a.m. (EST) and will feature the following:

  • Host: Fred Nahhat, Detroit Public Television
  • Introduction & Role of State Securities Offices: Brad Raffensperger, Georgia Secretary of State
  • Moderator: Donna Lowry, Georgia Public Broadcasting
  • Three Topic Segments: 1) Unscrambling the Stimulus—Strategies to Keep You from Scratching, 2) Rack ’Em Up—Roadmap Toward Recovery and 3) Creating a Cushion—Takeaways from Troubled Times

“At Detroit Public Television we see the great potential in forging a partnership that brings together leaders in state government, public television stations and libraries in communities across the country to educate the public on the timely subject of personal finance,” said Rich Homberg, President and CEO of Detroit Public Television. “With so many families concerned about making ends meet and saving for their retirement, this is an important moment for such a collaboration to step up and carry on this crucial work.”

Michelle Olympiadis, Acting Executive Director of the Investor Protection Trust, said: “Over the past year we have learned many lessons and experienced challenges we could not imagine.The synergy of these partnerships in delivering investor education to everyone as we begin to move out of this pandemic provides an exciting platform for engagement in real time or at your own time.”

The Boomers to Zoomers: Building a Secure Path to Retirement is a yearlong series of twelve 60-minute virtual events livestreaming via Facebook Live on partner Facebook pages on the fourth Friday of each month at 1:00 p.m. EST or 11:00 a.m. MST beginning with “The COVID Effect” on March 26, 2021.

 

The series provides the quality, objective investor and financial information needed by all Americans to make wise and safe investment decisions at every age and every stage of life. The Boomers to Zoomers virtual events are interactive and feature timely topics, financial experts, motivational stories and practical information viewers can use immediately to prepare for long-term financial security. Upcoming Boomer to Zoomer virtual event topics includes: How to Invest: What’s New and What’s Not; Military Finances; and Harness Your Inner Hummingbird: How to Build Your Nest Egg.

Boomers to Zoomers is part of When I’m 65, a program of the Investor Protection Trust in partnership with Detroit Public Television. When I’m 65 takes a generational look at retirement and focuses on the actions people should take at every age to prepare for a secure retirement. For more information visit, WI65.org .

ABOUT THE GROUPS

The Corporation Commission’s Securities Division enforces Arizona’s securities and investment laws through investigative actions as well as registration and oversight of securities, companies, salespeople and investment advisers; it provides

license/registration status of investment professionals and disciplinary history information upon request and disperses investor education information through brochures, presentations and online at:azcc.gov/azinvestor | facebook.com/CorpCommAZ| twitter.com/CorpCommAZ

The Investor Protection Trust (IPT) is a nonprofit organization devoted to investor education.More than half of all Americans are now invested in the securities markets, making investor education and protection vitally important.Since 1993 the Investor Protection Trust has worked with the states and at the national level to provide the independent, objective investor education needed by all Americans to make wise and safe investment decisions.

www.investorprotection.org | facebook.com/InvestorProtectionTrust | twitter.com/IPT_Info

Detroit Public Television is a viewer-supported PBS member station with offices in Detroit and Wixom, MichiganIts vision is to foster a community in which people trust public media to help them discover new ideas, make informed decisions and enjoy enriched lives.The station is notably active in producing programs that showcase arts, culture, news and analysis, as well as educational outreach campaigns that use the power of media to provide knowledge and understanding.

www.dptv.org | facebook.com/detroitpublicitv | twitter.com/detroitpublicitv

PBS Books is a multi-platform initiative celebrating PBS programming.Born out of the desire to develop original content that would appeal to vast audience of diverse readers, PBS Books hosts regular social and digital engagement events, as well as live coverage of important literary events across the country.In 2018, PBS Books launched a Library Engagement Program to build and enhance working relationships among libraries, local PBS stations, cultural institutions, and readers.Today, the Library Network has more than 1,800 partners.

www.pbsbooks.org | www.facebook.com/PBSBooks1 .| twitter.com/pbsbooks

MEDIA CONTACTS:

Nick Debus, Arizona Corporation Commission: (602) 542-0728 or ndebus@azcc.gov

Michelle Olympiadis, Investor Protection Trust: (202) 775-2112 or olympiadis@investorprotection,org

        facebook            twitter      youtube         instagram        Linkedin       Subscribe

                                   

 

                                   

 

                                   

 

                                   

 

  
 

 

 

August 7, 2019
Idaho Man and his Company Sold Unregistered Promissory Notes

The Corporation Commission ordered Roland B. Woolsey of Idaho and his affiliated company, Skytrace, Inc., to pay $142,500 in restitution and $10,000 in administrative penalties for offering and selling unregistered promissory notes. Woolsey and Skytrace, Inc. were seeking to raise $10 million in order to market a web-based inventory application but are not registered to offer or sell securities in Arizona.

In settling this matter, the respondents neither admit nor deny the Commission’s findings, but agree to the entry of the consent order. 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-21055A-18-0309.

July 11, 2019
Commission Finds Phoenix Man Defrauded Hispanic Christians with Promissory Notes

The Corporation Commission ordered Jaime A. Verdugo of Phoenix to pay $381,954 in restitution and a $20,000 administrative penalty for committing securities fraud. The Commission found Mr. Verdugo was not registered to offer or sell securities in Arizona when he solicited multiple promissory note investors, most of whom were from Hispanic Christian communities. The Commission found Jaime A. Verdugo told investors, on behalf of Verdugo Enterprises, LLC, that their money was going to purchase home decor products to fulfill online orders.However, the Commission found Mr. Verdugo mislead investors by stating their money was safe while knowing at least eight prior investors did not receive any investment returns. Also, the Commission found Jaime A. Verdugo failed to inform investors about the company’s unwritten policy to limit payouts to $6,000 every two weeks, which is contrary to the explicit terms of the promissory notes.

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-21064A-18-0402.

June 11, 2019
Commissioners sanction Laveen man for unlawful sale of securities

The Corporation Commission ordered Carlton Lamont Fox of Laveen, Arizona, and his affiliated company to pay $15,200 in restitution and a $5,000 administrative penalty for participating in the unlawful offer and sale of unregistered securities while not being registered as an Arizona securities salesman or dealer. The Commission found at least 17 investors were promised a return on their initial investment within 3-6 months, funding either the purchase of leads for prospective businesses that were interested in credit card reader terminals or for the purchase of the terminals that would be subsequently sold to interested businesses. The Commission found that Fox and his affiliated company, Fox First Services, LLC, participated in the unlawful sale of securities as an unregistered salesperson or dealer. Further, the Commission found that none of the investors received a full return of their original investment, and that Fox used some of the money to pay telemarketers for their work in soliciting investor funds. In settling this matter, respondents neither admitted nor denied the Commission findings, but agreed to the entry of the Commission's consent order.

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-21059A-18-0345.

June 11, 2019
Commissioners order more than $2 million in restitution to restore investors

Arizona resident Adam W. Child agreed to pay $2,014,592 in restitution and a $25,000 administrative penalty for selling promissory notes and LLC membership interests to investors. The Corporation Commission found that Child offered and sold notes and membership interests to at least 17 investors of Titan Funding Group I, LLC and Titan Capital Real Estate Fund I, LLC. The Commission found the investor funds were pooled to lend money to real estate developers who were to purchase and "flip" residential properties. However, the Commission found that Mr. Child violated the Securities Act's antifraud provisions when he failed to disclose to investors a previous judgment against him, that he had declared bankruptcy and that his prior mortgage-lending business had its license revoked.

In settling this matter, the respondent agreed to the entry of the consent order and admitted to the Commission's findings only for purposes of the administrative proceeding. 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-21054A-18-0301.

May 15, 2019 
Densco Investment Corporation Investors to Receive Additional Restitution 

Last week, investors of DenSco Investment Corporation were awarded a second monetary distribution for losses incurred as a result of their investment in a fraudulent company. On May 10, 2018, Maricopa County Superior Court approved the receiver’s motion to provide a second distribution in the amount of $2.5 million to DenSco Investment Corporation investors. This comes on the heels of a decision by the court in December 2017 where the receiver’s first motion was approved and $4.5 million was distributed to investors.

DenSco Investment Corporation was a real estate investment firm based in Chandler, Arizona that ceased doing business in 2016. The company was obtaining loans against hundreds of properties that were never actually purchased. As a result of this fraud, action was brought against the company by the Arizona Corporation Commission for violations of the Arizona Securities Act. Due to the death of the sole owner of the corporation, a receiver was appointed by the court in 2016. A receiver is a person appointed by the court to take possession and charge of designated assets or property and to administer them in accordance with court directives.

To date, DenSco Investment Corporation investors have been awarded roughly $7 million in distributions approved by the court. The receiver continues to recover assets and claims on behalf of the receivership and believes that more funds will be available for distribution at a later date.

                                                                     

 

Arizona Corporation Commission

1200 W. Washington Street

Phoenix, AZ 85007

 

Corporations Division

1300 W. Washington Street

Phoenix, AZ 85007

 

Tucson Office (Walk-ins only)

400 W. Congress Street

Tucson, AZ 85701