Securities sanctions imposed on Boulder-based company
DENVER — Colorado Securities Commissioner Gerald Rome signed the last of a series of cease and desist orders against Boulder company Ticonderoga Partners, principals John Charles Knight and Patrick Odrzywolski, and unlicensed sales representative William H. Hurlin. The orders are the result of allegations by the Division of Securities that Knight and Odrzywolski solicited funds from at least seven investors in three states that violated licensing and anti-fraud provisions of the Colorado Securities Act. Hurlin is alleged to have participated in one sale for which he received compensation.
An investigation conducted by the Division of Securities, part of the Department of Regulatory Agencies (DORA), concluded with the allegations that between February and April of 2011 investors solicited by the respondents contributed approximately $443,500 in limited partnership interests with Ticonderoga.
Investors were told that the partnerships would go toward development and service for the creation of a $400 million bond that was to be collateralized by life settlement policies. Investors were also promised that their investment would triple within 90 days, and that no money would be spent until an $800,000 threshold was met. Some investors were told that a separate party had already made a commitment for the other $400,000.
The Division alleges that in reality the $800,000 threshold was never met before the Respondents began spending investor funds. The bond was not created.
Further, the Division alleges that Knight engaged Odrzywolski and Hurlin, neither of whom had a license, to sell the Ticonderoga securities.
“The Respondents in this case did not use a licensed sales representative to offer or sell their securities, nor did they handle investor funds as promised,” stated Commissioner Rome. “Moving forward, we expect that they will follow the rules and abide by their duty to inform investors of all important material facts.”
The Respondents have been ordered to comply with all registration, licensing, and anti-fraud requirements of the Colorado Securities Act in the future.