CURRAN, NEW YORK AG MOVE TO STOP HAGERSTOWN INTERNET INVESTMENT FRAUD
Baltimore - Attorney General J. Joseph Curran, Jr. announced today that his office's Securities Division has joined the U. S. Securities & Exchange Commission and the New York State Attorney General's Office in taking action against a suspected internet investment fraud. The Securities Commissioner issued a Summary Order to Cease and Desist against a Washington County man and his company, Cellular Video Car Alarms Corporation, alleging violations of the Maryland securities laws in raising nearly half a million investor dollars in an unregistered and misleading offering conducted over the internet and through newspapers.
According to the order, Cellular Video Car Alarms Corporation, Cellularvideocaralarms.com, and its chairman and CEO, Carl Robinson, are ordered to cease and desist from selling unregistered securities, acting as unregistered securities brokers or investment advisers and from employing a scheme or device to defraud investors. The order alleges that Robinson and his company have violated Maryland law by offering and selling unregistered securities, acting as and employing an unregistered securities agent, and making material misrepresentations and omissions in the offer and sale of securities. Mr. Robinson and Cellular Video Car Alarms have 15 days in which to answer the allegations in the complaint and to request a hearing.
Curran's Securities Division alleges specifically that Cellular sold its securities on the basis of a two-page disclosure document that omitted to describe the many risks of the venture, the background of the company's management, and omitted financial statements altogether. According to the Summary Order, since January of this year, approximately 200 investors from all across the nation have invested in Cellular.
"We had to issue a Summary Order in this case because Mr. Robinson and his company have continued to raise money from unsuspecting investors," said Attorney General Curran. "By issuing a summary order, we can put a stop to these violations."
Meanwhile, the SEC's New York Regional Office obtained a Temporary Restraining Order and asset freeze against Cellular and Robinson, alleging similar violations of federal securities law. The SEC's filing indicated that virtually all of the monies raised from investors have been spent by Robinson, and that many of the agreements Cellular claims to have reached with potential suppliers and vendors are bogus. Concurrently, the New York Attorney General obtained from the Manhattan State Superior Court an order against Cellular and Robinson, as well as Veronica Bryant (Robinson's sister) and Darret Robinson (his brother), requiring them to appear in court for an examination of their activities. Cellular's securities were sold to a number of New York residents.
Curran emphasized that the Securities Division's investigation of this matter is continuing and urges anyone who invested funds with Cellular to call the Securities Division of his office at 410-576-7045.
Curran reminded investors to call the Securities Division at 410-576-6360 before they invest to find out whether the issuer, their investment adviser, broker and securities are registered. Even when an investment program looks reasonable, and friends and family trust the promoter, it's better to take a few minutes to verify the status of the promoters.