Chandler man illegally sold securities, owes more than $1.5 million, officials say
A Chandler resident is on the hook for nearly $1.5 million in restitution and $50,000 in penalties after the Arizona Corporation Commission found he illegally sold securities in a beverage company and failed to pay back investors.
The commission found that Lucio George Martinez and Samuel A. Jones sold a total of $2.14 million in unregistered securities in their company Shadow Beverages and Snacks. Neither individual was registered as a securities dealer or salesman, in violation of Arizona statutes.
Shadow Beverages and Snacks also failed in at least four cases to determine whether investors’ net worth or income would qualify them as accredited investors. In order to be considered an accredited investor, the SEC requires an individual to have a net worth of at least $1 million or earn $200,000 annually.
The Arizona Corporation Commission found that the company solicited a total of 16 promissory notes and one investment contract and also failed to repay investors when those investments came due. The company eventually paid a total of $552,500 to repay five of those investments.
Read more: http://www.eastvalleytribune.com/news/chandler-man-illegally-sold-securities-owes-more-than-million-officials/article_0e768fa8-552d-11e7-86fe-d30686fb8939.html
