2017-09-21 / Business

State shuts down unregistered securities activity for Flint firm Treasure Enterprise LLC

LANSING – According to a press release from the Michigan Department of Licensing and Regulatory Affairs (LARA), LARA’s Corporations, Securities & Commercial Licensing Bureau (CSCL) has issued a Consent Order to Treasure Enterprise, LLC of Flint for violations of the Michigan Uniform Securities Act (MUSA), The Consent Order resolves previous Orders to Cease and Desist, to Treasure Enterprise LLCand its agents Larry Holley of Grand Blanc and Patricia Gray of Flint from selling unregistered securities, from acting as unregistered agents of an issuer, and from making false or misleading statements in the offer and sale of securities, in violation of the Michigan Uniform Securities Act (MUSA).

“To protect Michigan investors from unscrupulous individuals, particularly vulnerable senior citizens, the state requires that securities and those who sell them be properly registered or exempt from registration,” said CSCL Director Julia Dale. “I strongly urge consumers to contact CSCL to verify a company or person’s registration status to better know the credentials of who they’re doing business with.”

An investigation by CSCL prompted by a consumer complaint against the firm and individuals, disclosed violations of MUSA by Treasure Enterprise, LLC, Larry Holley, and Patricia Gray, including the following:

Offering and selling an unregistered, non-exempt security issued by Treasure Enterprise, LLC; misrepresenting that the real estate investment would pay an annual investment return by a date certain without disclosing that the issuer may not be able to pay the note by the date promised if the real estate company did not generate sufficient income; and, failing to disclose that the company may not have enough liquid assets to pay the obligation, as promised.

Under the recent Consent Order, respondents agree that they will not conduct any business in Michigan regulated under the Act, and to pay imposed fines: Treasure Enterprise LLC, $40,000; Gray, $90,000; and Holley, $40,000. Fines will be deferred until receivership closes in United States Securities and Exchange Commission v Treasure Enterprise, LLC, et al, United State District Court of the Eastern District of Michigan.

A person who willfully violates MUSA or an order issued under that Act is guilty of a felony punishable by imprisonment for not more than 10 years or a fine of not more than $500,000.00 for each violation, or both.

Before entering into an investment, Michigan consumers are encouraged to contact CSCL and the bureau can run a registration check on any investment adviser, broker-dealer, professional, or product. CSCL can be reached at 517-241-6345 or online at: www.michigan.gov/securities. Investors are reminded that there is no replacement for their own due diligence. Investor education materials may also be found using that link. Securities orders, once issued, entered and served, can now be found online at http://www.michigan.gov/lara/0,4601,7-154- 61343_ 35395_ 77138_ 77140_ 77142--- ,00.html.

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