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Securities Administrative Orders Issued

The following orders were issued by the Division pursuant to Wis. Stat. §551.605 with respect to various professional registration and securities filing requirements under the Wisconsin Uniform Securities Law and may modify or supplement the requirements of Chapter 551. For orders relating to enforcement matters, see below.

COVID-19 Orders

Adobe PDF Document Emergency Order for Registrants Affected by the COVID-19 Outbreak (Issued March 20, 2020)

Crowdfunding Orders

Adobe PDF Document Order Permitting Certain Advertising under Wis. Stat. §551.202(27)

Adobe PDF Document Order Regarding Periodic Reporting

Adobe PDF Document Order Regarding Commissions

Exemption Orders

Adobe PDF Document Order Designating Nationally Recognized Securities Manual

Adobe PDF Document Private Fund Adviser Exemption Order

Professional Registration Orders

Adobe PDF Document Order Requiring Compliance with New FINRA Examination Requirements

Reg A Orders

Adobe PDF Document Order Regarding Regulation A Tier 2 Notice Filing

Reg D Orders

Adobe PDF Document Reg D Delinquent Filing Order

Enforcement Orders

The following orders were issued by the Division to enforce various provisions of the Wisconsin Uniform Securities Law as found in Chapter 551. Signed copies of Petitions for Order and Orders associated with the following persons or entities are available in the PDF format.

See Links to Archives below

 

Wisconsin Home Buyers Network, LLC, WIHBN Reality, LLC, WIHBN Contactor Services, LLC, WIHBN Financial Services, LLC, WIHBN Electrical Mechanical Services, LLC, WIHBN Total Plumbing Services, LLC, X-Speck LLC & Joseph Nemeth – Case No. S-236789 (EX) – a Summary Order to Cease and Desist and Revoking Exemptions & Notice of Order for Restitution and Civil Penalties was issued against Wisconsin Home Buyers Network, LLC, WIHBN Reality, LLC, WIHBN Contactor Services, LLC, WIHBN Financial Services, LLC, WIHBN Electrical Mechanical Services, LLC, WIHBN Total Plumbing Services, LLC, X-Speck LLC & Joseph Nemeth for the following violations:

  • Nemeth violated Wis. Stat. § 551.402(1) by transacting business as agents in Wisconsin without being registered under Ch. 551 or exempted from registration under Wis. Stat. 551.402(2) with each of the above investors.
  • WIHBN and Nemeth violated Wis. Stat. § 551.501(2) with respect to each of the above investors when, in connection with the offer, sale, or purchase of securities, they made untrue statements of material fact and omitted to state material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading.
  • WIHBN and Nemeth violated Wis. Stat. § 551.501(3) with respect to each of the above investors when, in connection with the offer, sale, or purchase of securities, they engaged in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person.

Order issued July 9, 2020

 

Wisconsin Home Buyers Network, LLC, WIHBN Reality, LLC, WIHBN Contractor Services, LLC, WIHBN Financial Services, LLC, WIHBN Electrical Mechanical Services, LLC, WIHBN Total Plumbing Services, LLC, X-Speck LLC & Jeremy Arrington – Case No. S-236789 (EX) – a Final Order By Consent to Cease and Desist, Revoking Exemptions and Imposing Restitution and Civil Penalties was issued against Wisconsin Home Buyers Network, LLC, WIHBN Reality, LLC, WIHBN Contractor Services, LLC, WIHBN Financial Services, LLC, WIHBN Electrical Mechanical Services, LLC, WIHBN Total Plumbing Services, LLC, X-Speck LLC & Jeremy Arrington for the following violations:

  • Arrington violated Wis. Stat. § 551.402(1) by transacting business as agents in Wisconsin without being registered under Ch. 551 or exempted from registration under Wis. Stat. 551.402(2) with each of the above investors.
  • WIHBN and Arrington violated Wis. Stat. § 551.501(2) with respect to each of the above investors when, in connection with the offer, sale, or purchase of securities, they made untrue statements of material fact and omitted to state material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading.
  • WIHBN and Arrington violated Wis. Stat. § 551.501(3) with respect to each of the above investors when, in connection with the offer, sale, or purchase of securities, they engaged in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person.

Order issued July 7, 2020

 

Mark Anthony Morrow (a/k/a Mark Baxter) – Case No. S-240679 (EX) – a Summary Order to Cease and Desist was issued against Mark Anthony Morrow (a/k/a Mark Baxter) for the following violations:

  • Morrow violated Wis. Stat. § 551.403(1) when he acted as an investment adviser without being registered or exempt from registration under Ch. 551.
  • Morrow violated Wis. Stat. 551.401(1) when he transacted business as a broker-dealer/agent without being registered or exempt from registration under Ch. 551.
  • Morrow violated Wis. Stat. 551.402(1) when he transacted business as an agent without being registered or exempt from registration under Ch. 551.
  • Morrow violated Wis. Stat. § 551.501(1) when he employed a device, scheme, or artifice to defraud prospective investors through the offer of profit-sharing plans, and falsely representing he could sustain returns in excess of $6,000.00 per week because of panic induced in the stock market due to the COVID19 pandemic. Morrow made these false representations to induce prospective investors to invest in the profit-sharing plan offered by Morrow in his advertisements as a part of his scheme or artifice to defraud in violation of Ch. 551.
  • Morrow violated Wis. Stat. § 551.501(2) when he made untrue statements of material facts and omitted material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading in connection with the offer of securities, including but not limited to representing that he was not registered to transact business as an investment adviser in Wisconsin, that he could sustain returns in excess of $6,000.00 a week, that certain stocks being recommended had not achieved the gains that Morrow represented they had, that certain stocks recommended by Morrow had undergone large fluctuations in value or returned much of their gains, and that a stock recommended by Morrow had had its trading suspended by the Securities and Exchange Commission.

Order issued June 16, 2020

 

Glen J. Webster – Case No. S-240185 (LX) – a Summary Order to Cease and Desist, Revoking Exemptions and of Censure was issued against Glen J. Webster for the following violations:

  • Webster violated § DFI-Sec. 4.06(2)(a), Wis. Admin. Code when he borrowed money from a Wells Fargo Clearing Services, LLC (“WFCS”) securities customer who was not a financial institution or institutional investor designated in Wis. Stat. § 551.401(2)(b) or (c).
  • Webster violated Wis. Stat. § 551.412.(4)(m) and § DFI-Sec. 4.06(2)(i) when he violated FINRA Rule 3240 and consequently FINRA Rule 2010 by borrowing money from a WFCS securities customer despite WFCS’s prohibiting such loans and without the firm’s approval. FINRA issued Webster a Letter of Acceptance, Waiver and Consent imposing a 3-month suspension of his association in any capacity with any member of FINRA for violating FINRA Rule 3240 and Rule 2010. The suspension began January 6, 2020 and ended April 5, 2020.

Order issued May 8, 2020

 

Hong Kong Capital Group & Oliver Sutton – Case No. S-239770 (EX) – a Summary Order to Cease and Desist was issued against Hong Kong Capital Group and Oliver Sutton for the following violations:

  • HKC Group and Sutton violated Wis. Stat. § 551.401(1) by transacting business as a broker-dealer in Wisconsin without being registered under Ch. 551 or exempted from registration under Wis. Stat. § 551.401(2).
  • HKC Group and Sutton violated Wis. Stat. § 551.501(3) by conducting their businesses, in connection with the offer and sale of securities, so as to operate a fraud and deceit upon a Wisconsin investor.

Order issued April 30, 2020

 

Gregory A. Anderson – Case No. S-231331 (EX) – a Consent Order to Cease and Desist and for Restitution was issued against Gregory A. Anderson for the following violations:

  • Anderson violated Wis. Stat. § 551.301 when he offered and sold promissory notes issued by Fiscal Concierge which were not federally covered, exempt from registration, or registered under Ch. 551.
  • Anderson violated Wis. Stat. § 551.402(1) when he transacted business as an agent on behalf of Fiscal Concierge by soliciting investors to invest in the promissory notes issued by Fiscal Concierge, without being registered with the Division or exempt from registration as an agent.
  • Anderson violated the terms of the 2002 order issued against him by the Division when he transacted business as an unregistered agent on behalf of Fiscal Concierge and sold unregistered securities which were not exempt or federally covered.
  • Anderson violated Wis. Stat. § 551.501(2) when he made numerous misrepresentations to the ISA clients he solicitated on behalf of Fiscal Concierge, including misrepresentations about the success of the company, that the company had never missed an interest or principal payment, and safety of investing in its promissory notes when he had detailed knowledge of the company’s true financial condition and the missed principal and interest payments to noteholders beginning in October 2013 and January 2015.
  • Anderson violated Wis. Stat. § 551.501(2) when he omitted to disclose several material facts to the ISA clients he solicited on behalf of Fiscal Concierge, including how the funds would be used and about the previous order issued against him by the Division.
  • Anderson violated Wis. Stat. § 551.501(3) when, in connection with the offer and sale of securities, he engaged in an act, practice, or course of business that operated as a fraud or deceit upon other persons by selling promissory notes in Fiscal Concierge as a Ponzi scheme.

Order issued March 30, 2020.

 

Shone M. Bagley, Greater States Sports Authority, Inc., Greater States Principal Financial Group, Inc., and IKP Financial Management Co. – Case No. S-239603 (EX) – a Summary Order to Cease and Desist and Revoking Exemptions & Notice of Proposed Order for Restitution and Civil Penalties Signed Waiver and Consent to Order was issued against Shone M. Bagley, Greater States Sports Authority, Inc., Greater States Principal Financial Group, Inc., and IKP Financial Management Co. for the following violations:

  • By conducting trades in the TD Ameritrade account using funds that had been distributed from the 401(k) account and not properly rolled over into another qualified account, Bagley violated Wis. Stat. § 551.401(1) by transacting business as a broker-dealer in Wisconsin without being registered as a broker-dealer under Ch. 551 or exempted from registration as a broker-dealer under Wis. Stat. § 551.401(2).
  • The Respondents violated Wis. Stat. § 551.501(2) by, in connection with the offer and sale of securities, directly or indirectly, making untrue statements of material fact and omitting to state material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading, including by making untrue statements about how the 401(k) funds of Caring Hearts’ employees were being used, and with respect to BC, making untrue statements about the status of her retirement funds and the performance history of GSSA.

Order issued March 18, 2020

 

Jeff Nelson & GN Capital Ltd aka Titan Trade – Case No. S-237960 (EX) – a Summary Order to Cease and Desist was issued against Jeff Nelson & GN Capital Ltd aka Titan Trade for the following violations:

  • GN Capital Ltd aka Titan Trade violated Wis. Stat. § 551.401(1) by transacting business as a broker-dealer in Wisconsin without being registered under Ch. 551 or exempted from registration under Wis. Stat. § 551.401(2).
  • Jeff Nelson violated Wis. Stat. § 551.402(1) by transacting business as an agent of a broker-dealer in Wisconsin without being registered under Ch. 551 or exempted from registration under Wis. Stat. § 551.402(2).
  • GN Capital Ltd Titan Trade violated Wis. Stat. § 551.402(4) by employing or associating with an agent who transacts business in this state without being registered under Ch. 551 or exempted from registration under Wis. Stat. § 551.402(2).
  • GN Capital Ltd aka Titan Trade and Jeff Nelson violated Wis. Stat. § 551.301 by offering and selling unregistered securities in this state to a Wisconsin investor.
  • All Respondents violated Wis. Stat. § 551.501(3) by conducting their businesses, in connection with the offer and sale of securities, so as to operate a fraud and deceit upon a Wisconsin investor.

Order issued February 24, 2020

 

Gregory J. Wood & Wood Wealth Solutions, LLC – Case No. S-236002 (EX) – a Consent Order to Cease and Desist Including Civil Penalties was issued against Gregory J. Wood & Wood Wealth Solutions, LLC for the following violations:

  • Wood violated Wis. Stat. § 551.402(1) when he offered and sold securities without being registered as an agent or properly exempted from registration as an agent.
  • Wood violated Wis. Stat. § 551.501(2) when he offered and sold notes issued by Woodbridge to the Wisconsin investors described above while omitting to state material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading, including but not limited to failing to disclose the Massachusetts Order, the Texas Order, and the Division’s investigation of Woodbridge.

Order issued February 10, 2020

 

Scales Dynasty, LLC & Shawnvel Scales – Case No. S-239215 (EX) – a Summary Order to Cease and Desist and for Revocation & Notice of Proposed Order for Restitution and Civil Penalties was issued against Scales Dynasty, LLC & Shawnvel Scales for the following violations:

  • Scales violated Wis. Stat. § 551.402(1) by transacting business as an agent of an issuer in Wisconsin without being registered as an agent under Ch. 551 or exempted from registration as agents under Wis. Stat. § 551.402(2).
  • All Respondents violated Wis. Stat. § 551.301 by offering and selling unregistered securities in this state to a Wisconsin investor.
  • Scales Dynasty, LLC violated Wis. Stat. § 551.402(4) when it engaged in the offering and selling of securities in Wisconsin by employing an agent, Shawnvel Scales, who was not registered under Wis. Stat. § 551.402(1) nor exempted from registration under Wis. Stat. § 551.402(2).
  • The Respondents violated Wis. Stat. § 551.501(2) by, in connection with the offer and sale of securities, directly or indirectly, making untrue statements of material fact and omitting to state material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading, including by making untrue statements about how investor funds would be used, the existence of fictitious tax lien certificates, and failing to disclose Scales’ criminal history.
  • The Respondents violated Wis. Stat. § 551.501(1) by conducting their business, in connection with the offer and sale of securities, so as to operate a fraud and deceit upon the investors.

Order issued January 9, 2020

 

Frank Lee & FM Capitals aka Genum Ltd. – Case No. S-237859 (EX) – a Summary Order to Cease and Desist was issued against Frank Lee and FM Capitals aka Genum Ltd. for the following violations:

  • FM Capitals violated Wis. Stat. § 551.401(1) by transacting business as a broker-dealer in Wisconsin without being registered under Ch. 551 or exempted from registration under Wis. Stat. § 551.401(2).
  • Frank Lee violated Wis. Stat. § 551.402(1) by transacting business as an agent of a broker-dealer in Wisconsin without being registered under Ch. 551 or exempted from registration under Wis. Stat. § 551.402(2).
  • FM Capitals and Frank Lee violated Wis. Stat. § 551.301 by offering and selling unregistered securities in this state to a Wisconsin investor.
  • All Respondents violated Wis. Stat. § 551.501(3) by conducting their businesses, in connection with the offer and sale of securities, so as to operate a fraud and deceit upon a Wisconsin investor.

Order issued January 2, 2020

 

Jamie A. Ver Hagen (d/b/a Jamie’s Shoes) – Case No. S-240297 (FX) – a Summary Order to Cease and Desist and Revoking Franchise Registration was issued against Jamie A. Ver Hagen (d/b/a Jamie’s Shoes) for the following violations:

  • The Respondent violated Wis. Stat. § 553.26(1) when she failed to upload an offering circular in a form required by Wis. Stat. § 553.27(4) with her franchise registration for Jamie’s Shoes.
  • The Respondent violated Wis. Stat. § 553.26(1) when she failed to pay the proper filing fee for the franchise registration for Jamie’s Shoes.

Order issued January 2, 2020

 

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