RELEASE: Securities Commissioner Orders Leilani Embernate and Joycelyn Embernate to Cease and DesistPosted on Jan 3, 2017 in News Releases
DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
DAVID Y. IGE
CATHERINE P. AWAKUNI COLÓN
TY Y. NOHARA
FOR IMMEDIATE RELEASE
January 3, 2017
Securities Commissioner Orders Leilani Embernate and Joycelyn Embernate to Cease and Desist
Asserts the Embernates and their company, Twin Stars of the Pacific, 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 Leilani Embernate, Joycelyn Embernate, and their financial consulting company, Twin Stars of the Pacific, Inc. (Respondents), for violating state securities laws.
The order asserts that, in March 2008, the Respondents solicited a Big Island resident to invest in a real estate development project they were planning, promising a 7 percent interest return after a year and a half. As a result, the Hawaii resident invested $100,000.00.
Leilani Embernate and Joycelyn Embernate are accused of failing to disclose to the investor that the funds would be used to pay back a previous investor; to make a “loan” to one of Leilani Embernate’s businesses; and, for telephone, credit card, and insurance payments. The real estate development project never came to fruition and the Hawaii investor remains unpaid.
State securities laws include anti-fraud provisions, requiring both securities and persons soliciting or transacting securities to be registered with the DCCA’s Securities Compliance Branch. The order asserts that the Respondents violated these anti-fraud provisions by employing deceptive schemes and devices to perpetuate fraud. It further alleges that the investment they sold to the investor was an unregistered security.
The order seeks $50,000.00 in penalties in addition to a permanent injunction against Leilani Embernate and Joycelyn Embernate from transacting securities in the state, rescission, and a refund to the investor.
The DCCA took previous action against Leilani Embernate in 2012, revoking both her mortgage solicitor’s license and real estate license. Joycelyn Embernate’s mortgage solicitor license was terminated in 2009, and she forfeited her real estate license in 2012.
Anyone who has been solicited by or transacted securities or investment-related business with Leilani Embernate, Joycelyn Embernate, or Twin Stars of the Pacific, 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 cease and desist order is available at https://cca.hawaii.gov/sec/files/2017/01/CD-Twin-Stars-Final.pdf.
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