BEFORE THE SECRETARY OF STATE OF WYOMING
STATE CAPITOL
CHEYENNE, WY 82002-0020
IN THE MATTER OF:) ) WellRich Associates, Inc.) 1301 Travis
Street) Suite 1800) Houston, TX 77002) Case #98-10 ) A
Broker Dealer, and) All agents known and unknown) Acting on
Behalf of the Broker Dealer) )
Verified Petition for ExParte Order to Cease and Desist
Violations of Wyoming's Uniform Securities Act
COMES NOW the Wyoming Securities Division and states as follows:
Unregistered Securities Broker-Dealer and Agent:
On June 12, 1998 the Securities Division of the Wyoming Secretary of
State's Office received a written complaint alleging that WellRich
Associates, Inc. (Broker-dealer) offered securities in Caribbean Motor
Works USA, Inc. in Wyoming.
1.Mr. Rob Prokos, representing himself as employed with WellRich
Associates, Inc., contacted a Wyoming investor by telephone during May
and June 1998 and obtained information from the Wyomming investor for
the purpose of opening an investment account.2.Mr. Rob Prokos offered a
Wyoming investor securities in Caribbean Motor Works USA, Inc.3.At no
time has Mr. Prokos been licensed as a securities agent with the Wyoming
Securities Division pursuant to Wyoming Statute (W.S.) § 17-4-103.4.At
no time has WellRich Associates, Inc. been registered as a broker-dealer
with the Wyoming Securities Division pursuant to W.S. § 17-4-103.5.W.S.
§ 17-4-103 states: (a)It is unlawful for any person to transact business
in this state as a broker-dealer or agent unless he is registered under
this act. (b)It is unlawful for any broker-dealer or issuer to employ an
agent unless the agent is registered...6.Mr. Prokos and WellRich
Associates, Inc. violated W.S. § 17-4-103 by transacting business in
Wyoming without proper registration.
Offer to Sell Unregistered Securities
7.The Caribbean Motor Works USA, Inc. stock offered by the respondents
is a security as defined by W.S. § 17-4-113 (a)(xi).8.W.S. § 17-4-107
states: (a)It is unlawful for any person to offer or sell any security
in this state unless: (i)It is registered under this chapter; (ii)The
security or transaction is exempted under W.S. §17-4-114; or (iii)It is
a covered security.9.Caribbean Motor Works USA, Inc. is neither
registered as a security with the Wyoming Securities Division, nor has
it filed for an exemption from registration.10.Wellrich Associates, Inc.
has not filed a securities registration for Caribbean Motor Works USA,
Inc. with the Secretary of State Securities Division.11.The securities
offered by Wellrich Associates, Inc. were not registered, were not
exempt from registration, and are not "covered" securities based on the
regular business records kept by the Wyoming Securities Division and
were offered in violation of W.S. §17-4-107 and 114.
Wherefore, the Wyoming Securities Division prays that an order issue
against WellRich Associates, Inc., its successors, affiliates,
controlling person, officers, agents, servants, employees and every
entity and person directly or indirectly controlled or organized by or
on its behalf to cease and desist from further offers or sales of
securities unless and until such securities, broker-dealer, and agents
are registered pursuant to the Wyoming Securities Act.
Done this _3rd__ day of _December_________, 1998.
I, Thomas Cowan, Wyoming Securities Division Director, Plaintiff,
being first duly sworn, state that I have read and understand the
forgoing Petition and know the allegations and contents thereof. The
same are true and correct to the best of my knowledge, information and
belief based on my personal knowledge and information obtained from the
files and records of the Wyoming Securities Division.
FOR THE STATE OF WYOMING SECRETARY OF STATE'S OFFICE SECURITIES
DIVISION _/s/____________________________ THOMAS COWAN, DIVISION
DIRECTOR,STATE OF WYOMING) )ss.COUNTY OF LARAMIE)
Subscribed and sworn to before me by Thomas Cowan, personally
known to me, this _3rd____ day of _December___, 1998.
Witness my hand and seal.
/official seal/
_/s/____________________________
Notary Public (Sally Simpson)My commission expires: 2/13/2000
STATE OF WYOMING) )ss.COUNTY OF LARAMIE)
AFFIDAVIT OF SERVICE
I, Thomas Cowan, being first duly sworn on my oath, state and
affirm as follows:
1.I am of legal age and am employed by the Secretary of State as the
Securities Division Director.2.On December _3___, 1998 I placed in the
United States Mail, registered receipt requested, a Verified Petition
for ExParte Order to Cease and Desist Violations of Wyoming's Uniform
Securities Act to WellRich Associates, Inc., 1301 Travis Street Suite
1800, Houston, Texas 77002.3.On December _3___, 1998 I placed in the
United States Mail, registered receipt requested, a certified copy of
Verified Petition for ExParte Order to Cease and Desist Violations of
Wyoming's Uniform Securities Act regarding WellRich Associates, Inc. to
the Texas Registered Agent for WellRich Associates, Inc., David E.
Brown, 1300 Main St., Ste. 1800, Houston, Texas 77002.4.On December _3
___, 1998 I personally delivered a certified copy of Verified Petition
for ExParte Order to Cease and Desist Violations of Wyoming's Uniform
Securities Act regarding WellRich Associates, Inc. to the Wyoming
Secretary of State, Corporations Division, State Capitol, Cheyenne, WY
82003.
Further Affiant Sayeth Not.
_/s/____________________________
Thomas Cowan
Securities Division DirectorSTATE OF WYOMING) )ss.COUNTY OF LARAMIE)
Before me, _/s/ (Sally Simpson)_, a Notary Public in and for
Laramie County, State of Wyoming, personally appeared _/s/ (Thomas
Cowan)_ a person personally known by me, and he being first duly sworn
by me upon his oath, says that the facts stated in the foregoing
instrument are true.
Witness my hand and official seal this _3rd_ day of _December___,
1998.
/official seal/
_/s/____________________________
Notary Public (Sally Simpson)My commission expires: 2/13/2000
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