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 Hawai‘i investor 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 money back in 30 to 45 days, plus 9.4% interest. McCotter did not disclose to the investor that McCotter would receive a $5,000 commission for selling the investment. The order further alleges that when the investment failed, McCotter did not pay back the investor as promised.
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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 Hawai‘i. 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 Hawai‘i, disgorge the $5,000 commission he received from selling the investment, pay a $25,000 administrative penalty and is barred from transacting in securities in the state in the future. The Cease and Desist order is available here.
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 (877) 447-2267.
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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 Branches:
Hawai‘i Island: (808) 974-4000, followed by 62740 and the # sign
O‘ahu: (808) 586-2740
Kaua‘i: (808) 274-3141, followed by 62740 and the # sign
Maui: (808) 984-2400, followed by 62740 and the # sign
Lāna‘i and Moloka‘i: 1-800-468-4644 (toll free), followed by 62740 and the # sign
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