Welcome to the State of California - Department of Corporations' website

Right Column

News Release: 01-12

GRAY DAVIS, Governor
Date: 06/08/01

DEMETRIOS A. BOUTRIS, Commissioner

Corporations Department Puts Fraudulent Bond Broker Out of Business

State Court Dismisses Challenge to Pacific Genesis' License Revocation

 

Sacramento, June 8, 2001 —California Corporations Commissioner Demetrios A. Boutris announced today that the suspension of Pacific Genesis Group’s securities license is now final and that Pacific Genesis’ challenge to the Department’s March 28, 2001 license suspension has been dismissed in State Court.

"Pacific Genesis is finally and completely barred from doing business in California," said Corporations Commissioner Boutris. "Unscrupulous operators beware - if you try to defraud California investors, the Department of Corporations will not rest until we shut you down."

Recent legal maneuvering by Pacific Genesis suggested that the firm was attempting to circumvent the Department’s March 28 summary license revocation so as to avoid the consequences in pending regulatory actions in other jurisdictions. The Department of Corporations stands shoulder to shoulder with federal and other states’ authorities and will coordinate with them to shut down perpetrators of fraud.

In a vigorous prosecution on behalf of California investors, the Department of Corporations convinced Sacramento Superior Court Judge Lloyd G. Connelly that the withdrawal of Pacific Genesis’ challenge of the March 28 license revocation gave immediate and full effect of the original revocation order.

The Department of Corporations is California's Investment and Financing Authority, reporting to the Business, Transportation and Housing Agency and the Governor. The Department is responsible for the regulation, enforcement and licensing of securities, franchises, off-exchange commodities, investment and financial services, independent escrows, consumer and commercial finance lending and residential mortgage lending. For further information or to obtain a complaint form, see the Department's Web site at www.corp.ca.gov.

###