STATE OF MAINE SECURITIES DIVISION 121 STATE HOME FACILITY AUGUSTA, ME 04333
IN RE David Elliot L’Hoir, PayDay Today! U.S.A. Inc. and PayDay Today! U.S.A. Com, Inc.
NOTICE OF INTENT TO ISSUE CEASE AND DESIST PURCHASE 01-073
David Elliot LвЂ™Hoir (hereinafter described as “LвЂ™Hoir”) may be the creator and present President and Chief Executive Officer of PayDay Today! Today U.S.A. Inc. and PayDay! U.S.A. Com, Inc. (hereinafter collectively referred to as “PayDay”). PayDay is incorporated pursuant to your legislation regarding the State of Nevada. PayDay runs a string of economic facilities in Southern Ca and has now a loan that is national center in Fort Lauderdale, Florida. PayDay runs through an internet website target. and advertises it self as having retail-affiliated stores nationwide.
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PayDay is into the continuing business of providing deferred deposit loans to customers. These loans are small, short term loans that need payment in just a time period that is relatively short. In an online payday loan deal, the buyer provides PayDay with an individual check and receives cash less the attention and charges charged by PayDay. The check will be held for a scheduled duration of the time, generally speaking before the consumerвЂ™s next payday, or a single or period that is two-week ergo the expression “payday” loan. PayDay individuals are charged fees that are annual normal 360% for the financial obligation principal.
Briefly thereafter, this Maine resident received into the mail a package of investment product associated with PayDay. In this material, LвЂ™Hoir represented which he ended up being providing a “4% month-to-month return collateralized by receivable (client Checks)” in substitution for the very least investment in PayDay of $10,000. LвЂ™Hoir further represented which he had been investors that are seeking purchase to increase 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 provided ninety daysвЂ™ notice is offered.
By page dated, the Maine resident who was simply solicited by LвЂ™Hoir, penned to your Securities Division to advise of LвЂ™HoirвЂ™s solicitation and offered the Securities Division with all the package delivered by LвЂ™Hoir.
As a consequence of becoming conscious of this solicitation, the Securities Division penned to LвЂ™Hoir by page dated April 30, 2001 notifying him that, pursuant towards the Revised Maine Securities Act, 32 M.R.S.A. 10101 et seq. (“the Act”), its illegal for anybody to market or provide to market any protection in Maine unless the protection is registered, or the protection or deal is exempt from enrollment beneath the Act. The Securities Division further notified LвЂ™Hoir that it’s additionally illegal beneath the Act to transact company in Maine as 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 built in experience of a sale and offer of securities constitute fraudulence beneath the Act.
In this letter, the Securities Division requested LвЂ™Hoir to examine their records and offer the Securities Division with a summary of all Maine residents with who LвЂ™Hoir has already established contact anytime associated with the offer or purchase of PayDay notes.
Moreover, the Securities Division notified LвЂ™Hoir that, he should cease soliciting sales of PayDay notes until he complied with Maine law.
LвЂ™Hoir has did not react to the Securities DivisionвЂ™s page dated. In specific, LвЂ™Hoir has did not supply the Securities Division with a summary of all Maine residents with who LвЂ™Hoir has received contact relating to the sale or offer of PayDay records or an assurance which he will stop soliciting Maine residents for sales of PayDay records.
The solicitation and pooling of investorsвЂ™ monies because of the expectation that the investors will get a return to their monies as being outcome of purchasing PayDay comprises a good investment agreement. A good investment agreement is really 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 protection 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 doesn’t have record that PayDay securities are registered for offer or purchase in Maine. Moreover, the Securities Division just isn’t alert to any relevant exemption from enrollment which is why PayDay securities might qualify, nor would be the securities federal covered securities.
It’s illegal for just about any individual to transact company in Maine as being a broker-dealer in Maine unless the broker-dealer is exempt or licensed 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 as a broker-dealer in Maine.
It really is illegal for just about any individual to transact company in Maine as being product sales agent unless certified or exempt from licensing under 32 M.R.S.A. В§10301 (2). The Securities Division does not have any record that LвЂ™Hoir is certified being a sales agent in Maine and it’s also maybe maybe maybe not conscious of any exemption that is applicable certification which is why he could 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 with this Notice of Intent to register a written ask for a hearing.
Christine A. Bruenn ________________________________
Christine A. Bruenn Securities Administrator