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STATE OF MAINE
121 STATE HOUSE STATION
AUGUSTA, ME 04333
David Elliot L'Hoir, PayDay Today! U.S.A.
Inc. and PayDay Today! U.S.A. Com, Inc.
NOTICE OF INTENT TO ISSUE
CEASE AND DESIST ORDER
- David Elliot LíHoir (hereinafter referred to as "LíHoir") is the
founder and current President and Chief Executive Officer of PayDay Today!
U.S.A. Inc. and PayDay Today! U.S.A. Com, Inc. (hereinafter collectively referred
to as "PayDay"). PayDay is incorporated pursuant to the laws of
the State of Nevada. PayDay operates a chain of financial centers in Southern
California and has a national loan processing center in Fort Lauderdale, Florida.
PayDay operates through an internet website address at www.paydaytodayusa.com.
and advertises itself as having retail-affiliated stores nationwide.
- PayDay is in the business of offering deferred deposit loans to consumers.
These loans are small, unsecured loans that require repayment within a relatively
short time period. In a PayDay loan transaction, the consumer provides PayDay
with a personal check and receives cash less the interest and fees charged
by PayDay. The check is then held for a scheduled period of time, generally
until the consumerís next payday, or a one or two-week period, hence the term
"payday" loan. PayDay consumers are charged annual fees that average
360% of the debt principal.
- In or about March 2001, a Maine resident was solicited by telephone by LíHoir
to invest monies in PayDay.
- Shortly thereafter, this Maine resident received in the mail a package of
investment material relating to PayDay. In this material, LíHoir represented
that he was offering a "4% monthly return collateralized by receivable
(Customer Checks)" in return for a minimum investment in PayDay of $10,000.
LíHoir further represented that he was seeking investors in order to raise
capital of $2,000,000 for PayDay. Pursuant to LíHoirís investment scheme,
investors obtain a note and retain the option of retiring this note provided
that 90 daysí notice is given.
- By letter dated March 15, 2001, the Maine resident who had been solicited
by LíHoir, wrote to the Securities Division to advise of LíHoirís solicitation
and provided the Securities Division with the package sent by LíHoir.
- As a result of becoming aware of this solicitation, the Securities Division
wrote to LíHoir by letter dated April 30, 2001 notifying him that, pursuant
to the Revised Maine Securities Act, 32 M.R.S.A. 10101 et seq. ("the
Act"), it is unlawful for anyone to sell or offer to sell any security
in Maine unless the security is registered, or the security or transaction
is exempt from registration under the Act. The Securities Division further
notified LíHoir that it is also unlawful under the Act to transact business
in Maine as a broker-dealer or sales representative unless licensed or exempt
from licensing. Furthermore, the Securities Division notified LíHoir that
misrepresentations and omissions of material fact made in connection with
an offer and sale of securities constitute fraud under the Act.
- In this letter, the Securities Division requested LíHoir to review his records
and provide the Securities Division with a list of all Maine residents with
whom LíHoir has had contact at any time in connection with the offer or sale
of PayDay notes.
- Furthermore, the Securities Division notified LíHoir that, until he complied
with Maine law, he should cease soliciting sales of PayDay notes.
- LíHoir has failed to respond to the Securities Divisionís letter dated April
30, 2001. In particular, LíHoir has failed to provide the Securities Division
with a list of all Maine residents with whom LíHoir has had contact in connection
with the offer or sale of PayDay notes or an assurance that he will cease
soliciting Maine residents for sales of PayDay notes.
- The solicitation and pooling of investorsí monies with the expectation that
the investors will receive a return on their monies as a result of investing
in PayDay constitutes an investment contract. An investment contract is a
security under 32 M.R.S.A. ß10501 (18).
- It is unlawful to offer or sell any security in Maine unless the security
is registered, is exempt from registration or is a federal covered security
under 32 M.R.S.A. ß10401.
- The Securities Division has no record that PayDay securities have been registered
for offer or sale in Maine. Furthermore, the Securities Division is not aware
of any applicable exemption from registration for which PayDay securities
might qualify, nor are the securities federal covered securities.
- It is unlawful for any person to transact business in Maine as a broker-dealer
in Maine unless the broker-dealer is licensed or exempt from licensing under
32 M.R.S.A. ß10301(2). The Securities Division has no record that either LíHoir
or PayDay is licensed as a broker-dealer in Maine.
- It is unlawful for any person to transact business in Maine as a sales representative
unless licensed or exempt from licensing under 32 M.R.S.A. ß10301 (2). The
Securities Division has no record that LíHoir is licensed as a sales representative
in Maine and it is not aware of any applicable exemption from licensing for
which he might qualify.
- For the reasons stated above, the Securities Administrator reasonably believes
that LíHoir and PayDay have engaged, are engaging or are about to engage in
any act or practice constituting violations of the Revised Maine Securities
Pursuant to 32 M.R.S.A. ß10708, notice is hereby given that the Securities
Administrator intends to issue an Order to Cease and Desist pursuant to 32 M.R.S.A.
ß10602(1)(A) against LíHoir and PayDay to prohibit further violations of the
Revised Maine Securities Act.
Pursuant to 32 M.R.S.A. ß 10708(2), LíHoir and PayDay have thirty (30) calendar
days from the entry of this Notice of Intent to file a written request for a
Christine A. Bruenn
Christine A. Bruenn