Securities Division Orders Halt to Ads Offering Unregistered Securities in the Form of “Secured Notes”

BALTIMORE, MD ( February 1, 2010) - Attorney General Douglas F. Gansler announced today that his Securities Division has issued a Summary Order to Cease and Desist against a Baltimore company advertising in a local paper, widely read by senior citizens, offering secured notes backed by real estate. The Order names Patuxent Management LLC, Patuxent Development Inc., and Antonio Almenara, and orders that they cease all offers and sales of the unregistered securities.

One ad, published in the January 2010 edition of The Beacon, presents an opportunity to, “INVEST AT 8% SECURED,” and adds that the “Notes [are] fully secured by local real estate.” The ad further states that “IRA or Pension funds are acceptable” for investment. Potential investors are told to call Patuxent Management LLC at a “301” telephone number or to use an apparent e-mail address. The Order asserts that the alleged “notes” constitute promissory notes or investment contracts, two types of passive investments that are defined as “securities” under the Maryland Securities Act. As such, they must be registered prior to offer or sale in Maryland.

“Ads in Maryland offering unregistered, non-exempt securities are unlawful,” said Attorney General Gansler. “But ads for something as potentially risky as real estate backed investments, aimed at our senior population, are particularly troubling.”

The Maryland Securities Division has no record of securities registration for an offering by the name of “Patuxent Management LLC” or “Patuxent Development Inc.,” and no claim of exemption from registration or status as a federal-covered security has been made with the Division. Furthermore, Patuxent Management LLC, Patuxent Development Inc., and Antonio Almenara are not registered with the Division as a broker-dealer, securities agent, investment advisor or investment advisor representative.

“The lure of a secured rate and the appeal to pension or IRA funds are clearly aimed at persons with concerns over retirement funding,” said Attorney General Gansler. “The absence of any filings with my office indicates the promoters are not adhering to State law, and may not even be identifiable should the investment go bad.”

The Office of Attorney General is asking anyone who purchased these notes to contact the Securities Division at 410-576-7047. Additionally, investors can contact the Securities Division at 410-576-6360 if they have questions concerning the status of investment promoters or the securities in which they plan to invest. Potential investors are always cautioned to call the Securities Division to thoroughly check out any securities broker-dealers, agents, investment advisors, investment advisor representatives, financial planners, the registration status of securities, or to report suspected fraud.