RELEASE: Securities Commissioner Orders Cease and Desist Against Sheila Turner-Souza, Burt L. “Coach” Souza, and Their Affiliated CompaniesPosted on Dec 9, 2019 in News Releases
DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
DAVID Y. IGE
CATHERINE P. AWAKUNI COLÓN
TY Y. NOHARA
FOR IMMEDIATE RELEASE
December 9, 2019
Securities Commissioner Orders Cease and Desist Against Sheila Turner-Souza, Burt L. “Coach” Souza, and Their Affiliated Companies
Alleges Turner-Souza, Souza, Rich’s Daily Grinds & Bagel Co., LLC, and Rich’s Kona Coffee Co., Inc. d/b/a Royale Coffee & Bagel Co., Inc, violated state anti-fraud provisions
HONOLULU — The state Department of Commerce and Consumer Affairs’ (DCCA) Commissioner of Securities issued a Preliminary Order to Cease and Desist and Notice of Right to Hearing against Sheila Turner-Souza, Burt L. “Coach” Souza, Rich’s Daily Grinds & Bagel Co., LLC, and Rich’s Kona Coffee Co., Inc. d/b/a Royale Coffee & Bagel Co., Inc. (Respondents), for violating state securities laws.
The order alleges that, the Respondents solicited Oahu residents through Craigslist advertisements seeking investors in their proposed coffee businesses. At least four investors invested a total of $125,000.
The action against the Respondents alleges multiple misrepresentations to the investors and the failure to disclose to the investors that the investors’ funds would be used to pay back previous investors and to pay the personal expenses of the Souzas.
State securities laws include anti-fraud provisions and require both securities and persons soliciting or selling securities to be registered with the DCCA’s Securities Compliance Branch. The order asserts that the Souzas violated the anti-fraud provisions by employing deceptive schemes and devices to perpetrate a fraud and for failing to disclose material facts to investors. It further alleges that the investments they sold to the investors were unregistered securities.
Additionally, the Souzas failed to disclose to investors that Turner-Souza had been previously barred from offering and/or selling securities in Hawaii based on a prior Consent Order she entered into in 2010.
The order seeks rescission, refunds to the investors, $300,000 in penalties, in addition to a permanent injunction against Sheila Turner-Souza and Burt Souza, and their affiliated entities, from soliciting securities in the state.
A copy of the Cease and Desist order is available at https://cca.hawaii.gov/sec/souza-executed-cd-20191125/.
Anyone who has been solicited by Sheila Turner-Souza, Burt Souza, Rich’s Daily Grinds & Bagel Co., LLC, and/or Rich’s Kona Coffee Co., Inc. d/b/a Royale Coffee & Bagel Co., Inc., 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
Phone: (808) 586-7582