The Colorado Securities Commissioner has sanctioned a Chicago company that was accused of selling unregistered securities.
The commissioner said that GHP Capital Corporation and its president George Just had been approaching potential investors, usually by phone, who had no prior contact with the company and were not expecting to be solicited.
The real estate company received a final cease and desist order.
At the time of the offering, GHP was trying to raise $1 million to purchase, redevelop and resale residential condominium developments in Chicago.
The Colorado Division of Securities claims that GHP failed to register its security offering, and by offering the investment opportunity to the public at large through the use of cold-calling techniques, the company was unable to claim any private offering exemption under the law.
“Soliciting investors through general advertising for private offerings of securities is a violation of the law, when those securities have not been registered,” said Fred Joseph, securities commissioner. “Investors should always be wary of stock offerings promoted through the use of general advertising.”
Joseph warns potential investors to contact his office to verify that securities have been properly registered before purchasing any security.
GHP and Just agreed to the order, which requires them to immediately and permanently cease and desist offering or selling any security in the state without first registering the securities.