STATEMENT OF CHARGES AND NOTICE OF
INTENT TO ENTER ORDER TO CEASE AND DESIST
AND TO CHARGE COSTS AND IMPOSE FINES
1 DEPARTMENT OF FINANCIAL INSTITUTIONS
Securities Division
PO Box 9033
Olympia, WA 98507-9033
360-902-8760
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STATE OF WASHINGTON
DEPARTMENT OF FINANCIAL INSTITUTIONS
SECURITIES DIVISION
IN THE MATTER OF DETERMINING
Whether there has been a violation of the
Securities Act of the State of Washington by:
Rick Young,
Respondent
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Order Number S-07-483-07-SC01
STATEMENT OF CHARGES AND NOTICE OF INTENT TO ENTER ORDER TO CEASE AND DESIST AND TO CHARGE COSTS AND IMPOSE FINES
THE STATE OF WASHINGTON TO:
Rick Young
STATEMENT OF CHARGES
Please take notice that the Securities Administrator of the State of Washington has reason to believe that Respondent, Rick Young, has violated the Securities Act of Washington and that his violations justify the entry of an order of the Securities Administrator under RCW 21.20.390 against him to cease and desist from such violations, imposing fines pursuant to RCW 21.20.395, and charging costs pursuant to RCW 21.20.390(5). The Securities Administrator finds as follows:
TENTATIVE FINDINGS OF FACT
I. RESPONDENT
1. Rick Young (“Young”) is a resident of Montana.
II. NATURE OF THE OFFERING
2. Between June 2004 and July 2004, Young offered and sold an investment in an unnamed gold and/or foreign currency exchange program to at least one Washington investor.
STATEMENT OF CHARGES AND NOTICE OF
INTENT TO ENTER ORDER TO CEASE AND DESIST
AND TO CHARGE COSTS AND IMPOSE FINES
2 DEPARTMENT OF FINANCIAL INSTITUTIONS
Securities Division
PO Box 9033
Olympia, WA 98507-9033
360-902-8760
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The investor was neither accredited nor sophisticated in financial matters or investments. The investor did not participate in the management of the investment.
3. Young was introduced to the Washington investor through a mutual acquaintance and made contact by telephone. Young promised the Washington investor a return of the initial investment within ninety days. From the day the principal was returned, and for a period of one year, Young promised the Washington investor a monthly return of double the initial investment. As a result of these oral claims, the Washington investor mailed two certified checks, totaling $6,000, to Young’s personal account located in the State of Montana. The Washington investor did not receive any offering documents or written information about the investment.
III. MISREPRESENTATIONS AND OMISSIONS
4. Young failed to provide material information regarding the investment
including, but not limited to, prospectus information such as financial statements, use of the proceeds from the offering, and general and specific risk factors involved in the investment.
IV. REGISTRATION STATUS
5. Rick Young is not currently registered as a securities salesperson or
broker-dealer in the State of Washington and has not previously been so registered.
Based upon the Tentative Findings of Fact, the following Conclusions of Law are made:
CONCLUSIONS OF LAW
6. The offer and sale of the investment described above constitutes the offer and sale of a security as defined in RCW 21.20.005(10) and (12).
7. Rick Young violated RCW 21.20.040 by offering and selling said securities while not registered as a securities salesperson or broker-dealer in the State of Washington.
STATEMENT OF CHARGES AND NOTICE OF
INTENT TO ENTER ORDER TO CEASE AND DESIST
AND TO CHARGE COSTS AND IMPOSE FINES
3 DEPARTMENT OF FINANCIAL INSTITUTIONS
Securities Division
PO Box 9033
Olympia, WA 98507-9033
360-902-8760
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8. Rick Young violated RCW 21.20.140 by offering and selling unregistered securities.
9. In connection with the offer and sale of said securities, Respondent, Rick Young violated RCW 21.20.010 because, as set forth in the Tentative Findings of Fact, Respondent made misstatements of material facts and/or omitted to state material facts necessary in order to make the statements made, in light of circumstances under which they were made, not misleading and/or engaged in acts and practices that operated as fraud or deceit.
NOTICE OF INTENT TO ORDER THE RESPONDENTS TO CEASE AND DESIST
Pursuant to RCW 21.20.390, and based on the above Tentative Findings of Fact and Conclusions of Law, the Securities Administrator intends to order the Respondent, Rick Young, to cease and desist from violations of RCW 21.20.010, RCW 21.20.040 and RCW 21.20.140.
NOTICE OF INTENT TO IMPOSE FINES
Pursuant to RCW 21.20.395, and based upon the Tentative Findings of Fact and Conclusions of Law, the Securities Administrator intends to order the Respondent, Rick Young, be liable for and pay a fine of $5,000.
NOTICE OF INTENT TO CHARGE COSTS
Pursuant to RCW 21.20.390(5), and based upon the Tentative Findings of Fact and conclusions of Law, the Securities Administrator intends to order the Respondent, Rick Young, be liable for and pay the Securities Division the costs, fees and other expenses incurred in the
STATEMENT OF CHARGES AND NOTICE OF
INTENT TO ENTER ORDER TO CEASE AND DESIST
AND TO CHARGE COSTS AND IMPOSE FINES
4 DEPARTMENT OF FINANCIAL INSTITUTIONS
Securities Division
PO Box 9033
Olympia, WA 98507-9033
360-902-8760
conduct of the administrative investigation and hearing of this matter, in an amount not less than $1,500.
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AUTHORITY AND PROCEDURE
This STATEMENT OF CHARGES AND NOTICE OF INTENT TO ISSUE AN ORDER TO CEASE AND DESIST, IMPOSE FINES, AND CHARGE COSTS is entered pursuant to the provisions of RCW 21.20.390 and RCW 21.20.395 and is subject to the provisions of Chapter 34.05 RCW. The Respondent, Rick Young, may make a written request for a hearing as set forth in the NOTICE OF OPPORTUNITY TO DEFEND AND OPPORTUNITY FOR HEARING accompanying this Order.
If the Respondent does not request a hearing, the Securities Administrator intends to adopt the above Tentative Findings of Fact and Conclusions of Law as final, enter a permanent order against the Respondent to cease and desist from violations of the Securities Act of Washington and enter an order imposing the fine and charging costs, as described above.
DATED AND ENTERED this 26th day of December, 2007
MICHAEL E. STEVENSON
Securities Administrator
Approved by:
Presented by:
Martin Cordell
Patrick Kim
Chief of Enforcement
Financial Legal Examiner
