RELEASE: Securities Commissioner Issues a Cease and Desist Order Against Nathan McCotterPosted on Dec 6, 2017 in News Releases
DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
DAVID Y. IGE
CATHERINE P. AWAKUNI COLÓN
TY Y. NOHARA
FOR IMMEDIATE RELEASE
December 6, 2017
Securities Commissioner Issues a Cease and Desist Order Against Nathan McCotter
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 NATHAN MCCOTTER for violating state securities laws.
The order asserts that in 2011, McCotter induced a Hawaii investor, whom he met at a Christian conference on the Big Island, to invest $50,000.00 in a hotel development. McCotter personally guaranteed the investment, telling the investor that he’d receive his investment back in 30-45 days plus 9.4% interest. McCotter did not disclose to the investor that McCotter would receive a $5,000.00 commission for selling the investment. The order further alleges that when the investment failed, McCotter did not pay back the investor as he promised.
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 investment was not registered as a security and McCotter was not registered to sell securities in Hawaii. The order further alleges that McCotter violated the state’s securities anti-fraud provisions by employing deceptive schemes and devices to perpetuate fraud on the investor.
McCotter is preliminarily ordered to cease and desist from offering to sell or selling any securities in Hawaii, disgorge the $5,000.00 commission he received from selling the investment, pay a $25,000.00 administrative penalty, and is barred from transacting in securities in Hawaii in the future. The Cease and Desist order is available at this link.
Anyone who has been solicited to purchase or has purchased securities from McCotter 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
Email: [email protected]
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Department of Commerce and Consumer Affairs