News Release

Arizona Corporation Commission October Open Meeting Highlights

For Immediate Release | 10-22-2019
Media Contact | Nicole Capone
Direct |  602-542-0713
E-Mail |


PHOENIX — The Arizona Corporation Commission today held its monthly Open Meeting to discuss and vote on various securities and utilities agenda items. Here is a brief recap of the meeting highlights:

Phoenix Man Commits Securities Fraud with Real Estate Investment

The Corporation Commission ordered Theodore W. Fowler of Phoenix and his affiliated company, Whispering Creek Investments, LLC to pay $1.16 million in restitution and a $50,000 administrative penalty for committing securities fraud in connection with an unregistered real estate investment program.

The Commission found Fowler was a licensed insurance producer and real estate salesperson when he and his company raised funds from eight investors to fund fix-and-flip and new-build real estate transactions. The Commission found Fowler touted his business success but failed to disclose his bankruptcy to at least one investor. Also, the Commission found Fowler used a portion of investor funds on other expenses not related to the investments and on other real estate properties not disclosed to investors. 

In settling this matter, the respondents admitted to the Commission’s findings only for the purposes of this proceeding and agreed 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 and entering docket number S-21076A-19-0100.

Commission Sanctions Hedge Fund Promoters

The Corporation Commission levied $25,000 in administrative penalties on David R. Kosack of Paradise Valley, David J. Varrone and The Credit Engineers, Inc. both of Florida, and $2,000 on Ernie Barrueta of Phoenix, for selling unregistered securities in connection with a purported hedge fund.

The Corporation Commission found investors were assisted by The Credit Engineers, Inc. to obtain loans with a promise the proceeds would be invested in a hedge fund. The Commission found, however, that little to none of the investors’ proceeds were invested in a hedge fund. None of the respondents were registered to offer or sell securities in Arizona.

As part of the resolution of this matter, The Credit Engineers, Inc. has repaid in full the investors’ principal investments. Further, the respondents neither admitted nor denied the Commission’s findings, but agreed 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 and entering docket number S-21069A-18-0418.

Approval of Chevelon Butte RE, LLC Transmission Line Application

A new wind farm will be built in northern Arizona after the Commission approved an application for a certificate of environmental compatibility authorizing the Chevelle Butte Wing Gen-Tie Project. This includes the construction of a new 345 KV transmission line and associated interconnection facilities originating in Coconino County and interconnecting with the APS Preacher Canyon-Cholla 345KV line in Navajo County, Arizona.

This will allow a wind farm to interconnect with and provide renewable energy into the gird. This project will bring a significant number of jobs to northern Arizona, specifically Winslow, Holbrook and Flagstaff. Once this project is complete, wind resources in the state will more than double. 

All documents relating to this agenda item can be found in the Corporation Commission's online docket at and entering docket number L-21080A-19-0171-00182.

A complete list of agenda items and a broadcast of the Commissioner’s October 22, 2019 meeting is available on the Corporation Commission’s website:

About us:
The Arizona Corporation Commission was established by the state’s constitution to regulate public utilities and business incorporation. The Corporation Commission is Arizona’s co-equal, fourth branch of government.​ 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


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