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STATE
OF
OFFICE OF SECURITIES
121 STATE HOUSE STATION
AUGUSTA, ME 04333
NOTICE
OF INTENT TO ISSUE
CEASE AND
DESIST ORDER 04-095
ALLEGATIONS
1.
Marketing Solutions International, Inc. (“Marketing Solutions”)
was incorporated in Nevada on February 19, 2002. Its address is 619 South Bluff, St. George,
Utah 84770. Marketing Solution’s corporate
status was revoked in March 2005 due to failure to renew its license. Marketing Solutions’ registered agent is Ladd
Eldredge, located at the same address.
2.
Consolidated Marketing Group, LC (“Consolidated Marketing”)
was incorporated in Utah on August 6, 1998. Its
address is the same as the address of Marketing Solutions. As of August 11, 2005, Consolidated Marketing’s
corporate status was still active. During
the time when Marketing Solutions’ corporate status was active, Consolidated Marketing
was an officer and/or director of Marketing Solutions.
3.
Marketing Solutions has purported to offer an “internet success
coaching program” where “you will find ideas for your internet business, website
development and marketing both online and offline.”
4.
A Maine consumer attended a Marketing Solutions seminar held
in Portland, Maine, on or about May 19, 2003. At the seminar, the Maine consumer was induced
into entering into a Website Monthly Hosting Agreement with IrvineWebWorks, Inc.
to establish a website and hosting account in the Maine consumer’s name.
Pursuant to the terms of the Website Monthly Hosting Agreement, the Maine
consumer agreed to pay IrvineWebWorks, Inc. $29.95 per website per month
5.
Furthermore, on or about June 23, 2003, the Maine consumer
paid Consolidated Marketing $5,000.00 for the following products, as described
in its invoice, in order to start her home-based business:
Product Description
Quantity
Smart Web Stores
Marketing Package
1
Executive Mentoring
12
Web Traffic Solutions
– 2000 Unique Visitors 2
Search Engine
Submissions (10 pages)
1
6. Upon this payment,
the Maine consumer was provided a toll-free number to obtain her “executive mentoring,”
i.e., assistance from “web coaches” to set up her website. However, the assistance that the Maine consumer
received was minimal and inadequate.
7. Marketing Solutions
and Consolidated Marketing have accordingly sold services and products to the
Maine consumer for the purpose of enabling the Maine consumer to start a business
pursuant to 32 M.R.S.A. § 4691(3).
8.
Pursuant to 32 M.R.S.A. §
4696, the seller of a business opportunity shall register with the Administrator prior to selling, offering
to sell, advertising or undertaking any other act relating to the promotion of
business opportunities in Maine.
9. The Maine Office
of Securities (“the Office”) has no record that either Marketing Solutions or
Consolidated Marketing is, or was at all times relevant to this matter, registered
as a business opportunity in Maine.
10.
Pursuant to 32 M.R.S.A. §
4692, the seller of a business opportunity shall provide all purchasers with a
disclosure statement meeting the requirements of 32 M.R.S.A. § 4691 et seq.
11.
The Maine consumer never received any form of disclosure statement
from Marketing Solutions or Consolidated Marketing.
12.
Pursuant to 32 M.R.S.A. §
4699(1), it shall be unlawful for any seller of a business opportunity to fail
to comply with any provision of 32 M.R.S.A. §
4691 et seq., including, but not limited
to:
A.
failing to register pursuant to 32 M.R.S.A. §§ 4696 and 4697;
B.
failing to provide all purchasers of the business opportunity
with a disclosure statement as required by 32 M.R.S.A. §
4692.
13.On
June 1, 2004, the Office sent a certified letter to Marketing Solutions, notifying
it that it had been offering, selling, and advertising business opportunities
in Maine contrary to the provisions of 32 M.R.S.A. § 4691 et seq. The Office requested that Marketing Solutions
provide a list of all Maine persons who had purchased its business opportunity.
The Office further requested that Marketing Solutions make rescission offers
to all such Maine persons.
14. Marketing
Solutions has failed to respond to the Office’s letter.
15. On June 6,
2005, the Office sent a certified letter to Consolidated Marketing, notifying
it that it had been offering, selling, and advertising business opportunities
in Maine contrary to the provisions of 32 M.R.S.A. § 4691 et seq. The Office requested that Consolidated Marketing
provide a list of all Maine persons who had purchased its business opportunity.
The Office further requested that Consolidated Marketing make rescission
offers to all such Maine persons.
16.By letter
dated June 20, 2005, attorneys for Consolidated Marketing informed the Office
that Consolidated Marketing ceased operations in early 2004 and had no assets
from which the Maine consumer could be paid rescission.
17.For the reasons
stated above, the Administrator reasonably believes that Marketing Solutions and
Consolidated Marketing have engaged, are engaging or are about to engage in acts
or practices constituting violations of 32 M.R.S.A. § 4691 et seq.
18. Pursuant to 32 M.R.S.A.
§ 4700(5), whenever it appears to
the Administrator that any person has engaged in or is about to engage in any
act or practice constituting a violation of 32 M.R.S.A. § 4691 et seq., the
Administrator may issue an order directing the person to cease and desist from
continuing the act or practice.
NOTICE
Pursuant to 32 M.R.S.A. § 4700(5), notice is hereby given that the Administrator intends to issue an Order to Cease and Desist against Marketing Solutions and Consolidated Marketing to prohibit further violations of 32 M.R.S.A § 4691 et seq.
Pursuant to 32 M.R.S.A. § 4700(5), Marketing Solutions and Consolidated Marketing have thirty (30) calendar days from the entry of this Notice of Intent to file a written request for a hearing.
Date:
August 18, 2005 /s/ Michael J. Colleran
Michael J. Colleran
Securities Administrator
Reviewed by:
Date:
August 18, 2005 /s/ Bonnie E. Russell
Bonnie E. Russell
Assistant Securities Administrator
Date:
August 18, 2005 /s/ Michael W. Atleson
Michael W. Atleson
Staff Attorney
Presented by:
Date:
August 18, 2005 /s/ Christian D. Van
Dyck
Christian D. Van Dyck
Investigator/Examiner