STATE OF MAINE SECURITIES DIVISION 121 STATE HOME FACILITY AUGUSTA, ME 04333
IN RE David Elliot L’Hoir, PayDay Today! Today U.S.A. Inc. and PayDay! U.S.A. Com, Inc.
NOTICE OF INTENT TO ISSUE CEASE AND DESIST PURCHASE 01-073
David Elliot LвЂ™Hoir (hereinafter named “LвЂ™Hoir”) may be the creator and present President and Chief Executive Officer of PayDay Today! U.S.A. Inc. and PayDay Today! U.S.A. Com, Inc. (hereinafter collectively referred to as “PayDay”). PayDay is incorporated pursuant to the rules associated with the State of Nevada. PayDay runs a string of economic facilities in Southern Ca and it has a national loan processing center in Fort Lauderdale, Florida. PayDay runs through an internet website target. and advertises it self as having stores that are retail-affiliated.
PayDay is when you look at the continuing business of providing deferred deposit loans to customers. These loans are little, short term loans that want payment within a fairly limited time period. In a quick payday loan deal, the customer provides PayDay with an individual check and receives cash less the attention and costs charged by PayDay. The check will be held for a scheduled duration of the time, generally speaking through to the consumerвЂ™s next payday, or a single or two-week duration, ergo the word “payday” loan. PayDay individuals are charged fees that are annual normal 360% for the financial obligation principal.
Fleetingly thereafter, this Maine resident received into the mail a package of investment product associated with PayDay. In this material, LвЂ™Hoir represented which he had been supplying a “4% month-to-month return collateralized by receivable (client Checks)” in substitution for at least investment in PayDay of $10,000. LвЂ™Hoir further represented which he ended up being searching for investors in purchase to improve money of $2,000,000 for PayDay. Pursuant to LвЂ™HoirвЂ™s investment scheme, investors get an email and wthhold the choice of retiring this note so long as ninety daysвЂ™ notice is offered.
By page dated, the Maine resident who had previously been solicited by LвЂ™Hoir, composed into the Securities Division to advise of LвЂ™HoirвЂ™s solicitation and supplied the Securities Division with all the package delivered by LвЂ™Hoir.
Due to becoming alert to this solicitation, the Securities Division penned to LвЂ™Hoir by page dated April 30, 2001 notifying him that, pursuant into the Revised Maine Securities Act, 32 M.R.S.A. 10101 et seq. (“the Act”), it really is illegal proper to market or provide to offer any protection in Maine unless the safety is registered, or even the protection or deal is exempt from enrollment underneath the Act. The Securities Division further notified LвЂ™Hoir that it’s additionally illegal underneath the Act to transact company in Maine being a broker-dealer or product sales agent unless certified or exempt from certification. Additionally, the Securities Division notified LвЂ™Hoir that misrepresentations and omissions of product reality manufactured in experience of an offer and purchase of securities constitute fraudulence underneath the Act.
In this page, the Securities Division requested LвЂ™Hoir to examine their records and supply the Securities Division with a summary of all Maine residents with who LвЂ™Hoir has already established contact whenever you want regarding the the offer or purchase of PayDay records.
Also, the Securities Division notified LвЂ™Hoir that, he should cease soliciting sales of PayDay notes until he complied with Maine law.
LвЂ™Hoir has didn’t react to the Securities DivisionвЂ™s page dated. In specific, LвЂ™Hoir has neglected to give you the Securities Division with a summary of all Maine residents with who LвЂ™Hoir has already established contact associated with the sale or offer of PayDay records or an assurance which he will stop soliciting Maine residents for product sales of PayDay records.
The solicitation and pooling of investorsвЂ™ monies using the expectation that the investors will get a return on the monies as being a total outcome of buying PayDay comprises a good investment agreement. A good investment agreement is just a protection under 32 M.R.S.A. В§10501 (18).
It really is illegal to provide or offer any safety in Maine unless the safety is registered, is exempt from enrollment or perhaps is a federal security that is covered 32 M.R.S.A. В§10401.
The Securities Division does not have any record that PayDay securities have already been registered for offer or purchase in Maine. Also, the Securities Division is certainly not alert to any relevant exemption from enrollment which is why PayDay securities might qualify, nor will be the securities federal covered securities.
It really is illegal for just about any person to transact company in Maine being a broker-dealer in Maine unless the broker-dealer is certified or exempt from licensing under 32 M.R.S.A. В§10301(2). The Securities Division does not have any record that either LвЂ™Hoir or PayDay is certified being a broker-dealer in Maine.
It really is illegal for just about any individual to transact company in Maine being a product sales agent unless exempt or licensed from licensing under 32 M.R.S.A. В§10301 (2). The Securities Division doesn’t have record that LвЂ™Hoir is certified being a sales agent in Maine which is maybe perhaps maybe not alert to any exemption that is applicable certification which is why he may qualify.
Pursuant to 32 M.R.S.A. В§10708, notice is hereby considering the fact that the Securities Administrator promises to issue a purchase to Cease and Desist pursuant to 32 M.R.S.A. В§10602(1)(A) against LвЂ™Hoir and PayDay to prohibit further violations associated with Revised Maine Securities Act.
Pursuant to 32 M.R.S.A. В§ 10708(2), LвЂ™Hoir and PayDay have actually thirty (30) calendar times through the entry for this Notice of Intent to register a written request a hearing.
Christine A. Bruenn ________________________________
Christine A. Bruenn Securities Administrator