CURRAN SANCTIONS HAGERSTOWN INTERNET PROMOTER FOR INVESTMENT FRAUD
Baltimore - Attorney General J. Joseph Curran, Jr. announced that his officeís Securities Division issued today a Final Order To Cease and Desist and Order of Bar against an internet investment fraud. In October, a Summary Order to Cease and Desist was issued against Carl Robinson, 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. Mr. Robinson and Cellular Video Car Alarms did not answer the allegations in the complaint or request a hearing.
The promoter and the company are fined $60,000 each for 12 violations of the Maryland Securities Act. In addition, Cellular Video Car Alarms Corporation, Cellularvideocaralarms.com, and its chairman and CEO, Carl Robinson, are permanently barred from selling securities in the future and from conducting a securities or investment advisory business in or from Maryland.
The Final Order contained findings that Cellular sold its securities on the basis of a two-page disclosure document that failed to describe the many risks of the venture, the background of the companyís management, and omitted financial statements altogether. Since January of this year, approximately 200 investors from across the nation have invested in Cellular.
"My priority is to immediately stop the fleecing of investors by this company and its principals," Attorney General Curran said. "This Final Order prohibits Mr. Robinson and his company from continuing to raise money from unsuspecting investors in or from Maryland."
Previously, the U.S. Securities & Exchange Commissionís New York Regional Office obtained a Temporary Restraining Order and asset freeze against Cellular and Robinson, alleging similar violations of federal securities law. The SECís 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. Also in October, the New York Attorney General obtained from the Manhattan State Superior Court an order against Cellular and Robinson, as well as Veronica Bryant (Robinsonís sister) and Darret Robinson (his brother), requiring them to appear in court for an examination of their activities. Cellularís securities were sold to a number of New York residents. Both actions are pending.
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.