RELEASE: SECURITIES COMMISSIONER ORDERS LAWRENCE STOGDELL AND COMPANIES TO CEASE AND DESIST SALE OF SECURITIES IN ALOHA PACIFIC CENTERPosted on Oct 4, 2017 in News Releases
DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
DAVID Y. IGE
CATHERINE P. AWAKUNI COLÓN
TY Y. NOHARA
FOR IMMEDIATE RELEASE
October 4, 2017
Securities Commissioner Orders Lawrence Stogdell and Companies to Cease and Desist Sale of Securities in Aloha Pacific Center
HONOLULU – The Department of Commerce and Consumer Affairs’ (DCCA) Commissioner of Securities issued a Preliminary Order to Cease and Desist and Notice of Right to Request a Hearing against Lawrence Stogdell and his companies Haumea Funding, LLC, Haumea Holdings, LLC, L.A. Anuenue, LLC, and L.A. Anuenue Holdings, LLC (Respondents), for violating state securities laws.
The order asserts, beginning in 2007 through 2011, Respondents sold at least $2.3 million of investments in an ostensible real estate project that Stogdell was purportedly developing called the “Aloha Pacific Center” (fka Haumea Professional Center). Respondents claimed that the investments were secured by ground leases on the property to be developed in Kapolei and guaranteed by Stogdell and his development company, L.A. Anuenue, LLC.
Respondents are accused of failing to disclose to investors that, during the time the investments were being offered and sold to Hawaii investors, Stogdell and his companies had multiple lawsuits against them, including foreclosures, judgments totaling millions of dollars, and a complaint for breaching one of the ground leases on the development site of the Aloha Pacific Center.
Although construction on the Aloha Pacific Center site has never commenced, Respondents continue to advertise the project.
State securities laws require that both securities and persons soliciting or transacting in securities be registered with the DCCA’s Securities Compliance Branch. The order asserts that the investments Respondents sold in the Aloha Pacific Center are unregistered securities. The order further alleges that the Respondents violated the anti-fraud provisions by employing deceptive schemes and devices to perpetuate fraud on the investors.
The order preliminarily orders Respondents to cease and desist from offering to sell or selling any investments in the Aloha Pacific Center, seeks rescission and refund of the investment funds to the investors, an administrative penalty of $500,000.00 against Respondents, and a bar against Respondents from transacting in securities in Hawaii in the future. The Cease and Desist order is available here.
Anyone who has been solicited to purchase or has purchased investments in the Aloha Pacific Center or who may otherwise have information regarding this matter is urged to contact the DCCA’s Securities Enforcement Branch (SEB) at 808-586-2740 or toll free at 1-877-HI-SCAMS.
The SEB receives and investigates complaints regarding potential violations of Hawaii securities laws and prosecutes securities fraud as well as other securities law violations.
Securities Enforcement Branch
Oahu: (808) 586-2740
Kauai: (808) 274-3141, followed by 62740 and the # sign
Maui: (808) 984-2400, followed by 62740 and the # sign
Hawaii: (808) 974-4000, followed by 62740 and the # sign
Lanai and Molokai: 1-800-468-4644 (toll free), followed by 62740 and the # sign
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Department of Commerce and Consumer Affairs