Cease and desist order issued to Global Diversified Partners for offering unregistered securities
DENVER (Sept. 17, 2015) – Following an investigation by the Colorado Securities Division, part of the Department of Regulatory Agencies (DORA), a cease and desist order was issued to Global Diversified Partners, LLC (Global), and to managing members Daniel Kalenov and John Turley, for the sale of unregistered securities in the state of Colorado.
Headquartered in San Diego, California and registered in Wyoming, Global Diversified Partners is an investment firm that raises funds for real estate projects. However, the firm is neither licensed in the state of Colorado, nor has it registered any securities offerings in this state.
Yet, in January of 2015, the Division of Securities received a complaint that Global Diversified Partners was inviting potential investors to “educational” events in the Denver area in which the firm pitched a real estate project in Belize that claimed to offer returns of 12 to 16 percent for investors. Later in 2015, a second complaint to the Division of Securities involved an event where a fixed 15 to 17 percent return on investments in a local condo development was promoted by the firm.
As a result of an investigation, the Division of Securities learned that Global was soliciting funds for projects located both locally and abroad, and that manager Kalenov had been discussing business plans and attempting to gain investments through seminars. The investigation also revealed, however, that no registration, nor exemption from registration, has ever been filed with the state.
“The conditions under which this company was soliciting funds were in violation of the Colorado Securities Act, specifically because we require an offering to be registered or to qualify for an exemption from registration,” stated Colorado Securities Commissioner Gerald Rome. “When neither of those factors are being adhered to it can turn into a risky endeavor for an investor who doesn’t know better.”
Respondents Kalenov and Turley, along with Global Diversified Partners LLC, agreed to the cease and desist order made by the Commissioner, and are required to immediately stop offering unregistered, non-exempt investments in the state of Colorado.
Division of Securities