For Immediate Release | 2-5-19      
  Media Contact | Holly Ward      
  Direct | 602-542-3847      
  E-Mail | hward@azcc.gov      
         
 

Arizona Corporation Commission February Open Meeting Highlights

 
 
PHOENIX — The Arizona Corporation Commission today held the first of its 2-day monthly Open Meeting. Chairman Bob Burns established a new format for this year's monthly Commissioner meetings calling for two days to publicly discuss and vote on the month's agenda items. The first day of Open Meeting will begin with the Chairman's proposed consent agenda followed by discussion of regular agenda items, with any amendments, among Commissioners, staff, and members of the public. Day two of Open Meeting is expected to consist of Commissioner votes on the designated regular agenda items.

During Tuesday's Open Meeting, Commissioners voted to pass consent agenda items which included approval of railroad crossing upgrades in Tucson and Casa Grande, designation of an eligible telecommunications carrier, approval of utility company rates, and action to hold individuals and businesses accountable for fraudulent investments ordering them to pay restitution to their victims. Here are Tuesday's meeting highlights:

Commissioners Approve Two Union Pacific Railroad Company Applications

Two railroad safety items were on the Corporation Commission's Consent Agenda at the February Open Meeting, both involving Union Pacific Railroad Company. The first was the approval of a grade separated, or overpass, crossing in Tucson. The other modified an original Corporation Commission decision.

The first consent agenda item covered an application filed by the Arizona Department of Transportation on behalf of Union Pacific to construct a new grade crossing to replace an existing at-grade crossing at the intersection of Ruthrauff Road and Interstate 10 in Tucson. The approval of this application allows construction of a raised roadway to replace the current street-level grade crossing. Commissioners believe the removal of the at-grade crossing and construction of the grade separated crossing are necessary for the convenience and safety of the motoring public. Union Pacific will have 36 months from the effective date of this decision to complete construction.

The second consent agenda item will remove a requirement that Union Pacific file average daily traffic count surveys for four at-grade crossings. Two of the at-grade crossings are located in the City of Casa Grande and the other two are in Pinal County. As part of the original decision allowing the at-grade improvements, the company was required to file average daily traffic counts. Union Pacific applied to modify the decision because they do not employ personnel qualified to conduct the studies and because the Corporation Commission's Rail Safety Division can access traffic count information from the road authority if staff deems it necessary.

All information relating to these two agenda items can be found in the Corporation Commission's online docket at http://edocket.azcc.gov and entering docket numbers RR-03639A-18-0255 and RR-03639A-07-0518.

Gregory J. Sanchez, CoverLugg, LLC and Birdie Media, LLC

The Corporation Commission ordered Gregory J. Sanchez of Chandler and his two affiliated companies to pay more than $2 million in restitution and $150,000 in administrative penalties for defrauding investors. Sanchez and his limited liability companies, CoverLugg and Birdie Media, were never registered to sell securities in Arizona.

The Corporation Commission found Sanchez engaged in securities fraud when he promised at least three investors a return on their investments within a year but failed to repay them. Also, the Corporation Commission found that Sanchez falsified company purchase orders and failed to disclose numerous judgments ordered against him and his conviction for bank fraud to relevant investors.

For more details on this case, view the full text of the Corporation Commission's order S-20984A-16-0315.

Adam Child, Real Estate Finance Corporation, and WIN Opportunity Fund

The Corporation Commission ordered Adam Child of Scottsdale and his affiliated companies to pay a total of $3,6280,565 in restitution and a $40,000 administrative penalty for committing securities fraud in connection with real estate investments. The Corporation Commission found that Real Estate Finance Corporation and WIN Opportunity Fund solicited potential investors through information seminars, cold-calling and social media, but omitted material information that would have allowed investors to evaluate claims of Child's past business success and be informed about Child's previous judgment against him, his declaration of bankruptcy, and the license revocation of his prior mortgage-lending business.

For details on this case, view the full text of the Corporation Commission's order S-21018A-17-0232.

Titan Funding Group I, LLC and Titan Capital Holding, LLC

The Corporation Commission approved a consent order signed by the court-appointed receiver for Titan Funding Group I, LLC and Titan Capital Holding, LLC, requiring the companies to pay $39,740 in restitution. The restitution amount is what the receiver was able to distribute to the investors. The Commission found the companies raised more than $2.75 million from at least 25 investors, pooling the funds to lend money to real estate developers who were to purchase and "flip" residential properties. However, the Corporation Commission found that Titan Funding Group I, LLC failed to tell investors that its executive, Adam Child, had a previous judgment against him, had declared bankruptcy, and that Child's prior mortgage-lending business had its license revoked. Additionally, the Corporation Commission found Titan Funding Group I, LLC co-mingled funds from related companies that subsequently spent the funds on unsecured development projects and overhead.

For details on this case, view the full text of the Corporation Commission's order S-21054A-18-0301.

Open Meeting Continues Wednesday

Commissioners are scheduled to finish discussion and vote on the Regular Agenda items on Wednesday. A complete list of agenda items and a broadcast of the Commissioner's February Open Meeting is available on the Corporation Commission's website: http://www.azcc.gov/live.

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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://www.azcc.gov.