California man ordered to cease solicitation and sale of securities in Colorado
DENVER — A cease and desist order has been issued to Torrance, California resident Ronald Scovil following an investigation that revealed he sold unregistered securities in Colorado between August of 2011 and July of 2013.
The Colorado Division of Securities, part of the Department of Regulatory Agencies (DORA), discovered that for those two years Scovil had sold shares in stock for his companies Summit Wines, LLC and Summit Wines, Inc. Both companies, despite being located in Colorado, were neither registered nor exempt from registration with the Securities Commissioner.
A stipulation issued by the Division stated that Scovil sold stock and membership interests in the Summit Wine companies to approximately seven investors that amounted to around $175,000. The solicitation and/or sale of stock and investment contracts constitute securities under the Colorado Securities Act.
While neither company is still in operation, Scovil has agreed per the terms of the order to admit the allegations, and has agreed to cease all violations of the Colorado Securities Act. He also acknowledges that any further violation would result in additional disciplinary actions by the Division.
“This is another example of why you should always check with the state securities regulator about an investment opportunity before you hand over money,” commented Colorado Securities Commissioner Gerald Rome. “These private company investments can be extremely risky, and it’s always best to take a few minutes and do your homework.”