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News Release Directory


                                      Current News Releases        Archived News Releases 

 

March 12, 2019

Thomas P. Madden
The Corporation Commission ordered Thomas P. Madden of Chandler to pay $3,284,792 in restitution and a $75,000 administrative penalty for defrauding at least 79 people in connection with selling them stock in start-up companies. The Commission found that Madden told several people the company stock was bargain priced with likely upward potential while for several yearsthe companies actually had no revenues and large financial losses. Additionally, the Commission found Madden did not disclose to potential investors that prior investors had sued him for selling worthless stock and that he had frequently borrowed money from stock purchasers but failed to repay the loans in full.

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
.

Commission Sanctions Multiple Individuals and Companies, including two Lake Havasu CPAs and their company that committed a $2.6 Million Fraud

 
In settling this matter, Madden neither admits nor denies the Commission’s findings, but agrees to the entry of the consent order. For more details about this case, view the full text of the Commission’s order S-21042A-18-0059


February 5-6, 2019
Gregory J. Sanchez, CoverLugg, LLC and Birdie Media, LLC

 The Corporation Commission ordered Lake Havasu CPAs Lance Michael Bersch and the late David John Wanzek and their affiliated company, ER Financial & Advisory Services, LLC, to pay $2.6 million in restitution and a total of $816,000 in administrative penalties for fraudulently selling unregistered securities and registration violations. Also, the Corporation Commission ordered Concordia Financing Company, Ltd. of California to jointly pay $2.6 million restitution and a $700,000 administrative penalty for its securities registration violations. The Corporation Commission found that Bersch and Wanzek fraudulently sold unregistered investment contracts in Concordia, which was in the business of purchasing and servicing subprime loans to truck drivers who purchased used, big rig trucks. The Corporation Commission found that Bersch, Wanzek and ER Financial were not registered to sell securities in Arizona, and they failed to disclose to several investors the finders' fees Concordia paid them for selling the investments. The Corporation Commission found Concordia did nothing to determine if an investor had the financial wherewithal to make an investment, and it failed to use questionnaires or other materials to determine whether investors were accredited investors. For more details on this case, view the full text of the Corporation Commission's order S-20906A-14-0063.

 

 A complete list of agenda items and archived broadcast of the Commissioner's February Open Meeting is available on the Corporation Commission's website: http://www.azcc.gov/live.