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STATE OF MAINE
OFFICE OF SECURITIES
121 STATE HOUSE STATION
AUGUSTA, ME
04333
IN RE: Parasol Films II, Inc., Parasol Films II, LLC, Erik Baquero, Dean
McDaniel, Daniel Duarte, Nicholas Melisse
CONSENT ORDER
No. 03-016-CON
1.
This Consent Order applies to respondent Erik Baquero only.
2.
At all relevant
times, it has been unlawful for any person to offer or sell any security in
Maine unless the security is registered or exempt from registration pursuant to
the Revised Maine Securities Act, 32 M.R.S.A. §§ 10101-10710 ("the
Act").
3.
At all relevant
times, it has been unlawful for any person to transact business in Maine as a
broker-dealer unless licensed to do so or exempt from such licensing pursuant
to the Act, or for any broker-dealer to employ or contract with a person as a
sales representative in Maine unless the sales representative is licensed or exempt
from licensing under the Act.
4.
Parasol Films II, Inc., (“Parasol”) is a foreign business
entity with a last known business address of 5606 Hollywood Boulevard, Hollywood,
Florida 33021. Parasol was incorporated
in Florida on July 25, 2000, and is inactive as of September 19, 2003. Parasol is not licensed, and has not applied
for a license, as a broker-dealer in the State of Maine.
5.
Parasol Films II, LLC, (“LLC”) is a foreign business entity with
a last known business address of 5606 Hollywood Boulevard, Hollywood, Florida
33021. LLC is an active limited
liability company that filed with the Florida Department of State, Division of
Corporations on July 18, 2000.
6.
Erik Baquero (“Baquero”) is an individual who at all times
relevant to this matter has been the sole shareholder, Chairman, Chief
Executive Officer, President, and Director of Operations of Parasol and a
control person of Parasol and LLC, as defined in 32 M.R.S.A. §10602(3). Baquero’s last known business address is 5606
Hollywood Boulevard, Hollywood, Florida 33021.
7.
In May 2001
Parasol offered and sold securities to two Maine residents when those
securities were not registered for sale in Maine pursuant to the Act. Specifically, unlicensed sales
representatives of Parasol offered and sold the Maine residents $2,500 in LLC "units"
as an investment in the purported development of a motion picture. A portion of those funds, $1,125, was later
returned to the investors as part of a rescission agreement.
8.
On March 25,
2004, the Securities Administrator issued a Notice of Intent to Issue a Cease
and Desist Order ("Notice") against the respondents, giving each of
them thirty (30) days to request a hearing on the matter. None of the respondents requested a hearing
except for Baquero.
9.
On or about
August 19, 2004, Baquero repaid the Maine investors $1,719, the remaining
portion of their investment plus applicable interest.
10.
On August 25,
2004, the Securities Administrator issued a final Cease and Desist Order
against all respondents except for Baquero.
11.
The parties
desire an expeditious resolution of this matter.
12.
Without trial or
adjudication of any issue of fact or law, and without admitting or denying that
his conduct violated the Revised Maine Securities Act, Baquero waives his right
to a hearing and to judicial review and consents to the entry of this
order.
ORDER
NOW, THEREFORE, it is ORDERED that Baquero permanently
CEASE AND DESIST from violating any provisions of the Revised Maine Securities
Act, including the prohibitions against offering and selling unregistered
securities, transacting business as a broker-dealer or sales representative
unless licensed to do so, and employing or contracting with a person as a sales
representative unless the sales representative is licensed under the Act.
Baquero hereby waives his
right to a hearing and to judicial review and consents to entry of the order
set forth above.
Date: September 22, 2004 s/Erik
Baquero
Erik
Baquero
Ordered by:
Date: October 10, 2004 s/Christine A. Bruenn
Christine A. Bruenn
Securities Administrator
Reviewed by:
Date: September 27, 2004 s/Bonnie
E. Russell
Bonnie
E. Russell
Assistant
Securities Administrator
Presented by:
Date: September 27, 2004 s/Michael
W. Atleson
Michael W. Atleson
Staff
Attorney