What is the name of your state? CA
Two years ago (2003), I made a sizeable investment into a newly formed bodyscanning business in California. It has sense gone under, which I could not understand as the President of the Company assured me a few months ago that all was well. I was prepare to take the loss when I remembered that I had a business card from the Officer manager, so I called her up to get her take on the company.
Turns out that despite the Presidents glowing claims, the company had never been doing all that well. I felt like I had been screwed so I did a little digging and with a simple search of the presidents name on the internet, found out that the California Board of Corporations had issued a "desist and refrain" order back in 2002 against this same company. In it they were ordered to stop offering or selling securites in the form of trust units or limited partnership interests. Amoung the reasons the CA BD of Coop cited in the order were.
- misrepresenting potiential profits without any basis in fact.
- False claims of medical personnel acting as advisory board members.
- Failed to disclose that the President had previous securities violations.
- Failed to disclose that @ 400,000 dollars was being paid to a consulting firm that was owned and controlled by the President and VP (they are grandfather and grandson)
I called the Calif bd of Coop to see if they had been cleared to resume business, they said they had not.
The plot gets much thicker than this, but do I have any legal recourse based on the fact that this company was operating despite the above order???
Two years ago (2003), I made a sizeable investment into a newly formed bodyscanning business in California. It has sense gone under, which I could not understand as the President of the Company assured me a few months ago that all was well. I was prepare to take the loss when I remembered that I had a business card from the Officer manager, so I called her up to get her take on the company.
Turns out that despite the Presidents glowing claims, the company had never been doing all that well. I felt like I had been screwed so I did a little digging and with a simple search of the presidents name on the internet, found out that the California Board of Corporations had issued a "desist and refrain" order back in 2002 against this same company. In it they were ordered to stop offering or selling securites in the form of trust units or limited partnership interests. Amoung the reasons the CA BD of Coop cited in the order were.
- misrepresenting potiential profits without any basis in fact.
- False claims of medical personnel acting as advisory board members.
- Failed to disclose that the President had previous securities violations.
- Failed to disclose that @ 400,000 dollars was being paid to a consulting firm that was owned and controlled by the President and VP (they are grandfather and grandson)
I called the Calif bd of Coop to see if they had been cleared to resume business, they said they had not.
The plot gets much thicker than this, but do I have any legal recourse based on the fact that this company was operating despite the above order???
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