Paul Moore Coast Capital Management Hit with Cease and Desist Order by California’s Department of Business Oversight
On May 18, 2016 the State of California’s Department of Business Oversight issued a cease and desist order against Paul Moore of Coast Capital Management over allegations they participated in an unqualified offering of securities to California residents. The claim relates to an offering of securities in Paul Moore’s Coast Capital “Hedge fund” which sought outsized returns using high risk securities such as derivatives and options.
The Desist order states that beginning in October, 2010 Paul Moore sold interests in Coast Capital, which was an unqualified offering of securities. The order further states that the sale of securities was done via misrepresentations of material facts and omissions of material facts, including misrepresentations about Paul Moore’s investment management experience and success, and how the funds raised by Paul Moore and Coast Capital would be used. According to the allegations made by the Commissioner, Moore used funds raised in the offering in a manner inconsistent with prudent investment management, including using the funds to pay personal expenses.
As a result of the findings the Commissioner concluded that Paul Moore, Coast Capital violated the California Corporate Securities Laws by selling unqualified securities, and by selling securities by way of material omissions of fact. The cease and desist order also makes a claim that Paul Moore, Coast Capital acted as unregistered investment advisors, and demands that they cease engaging in fund raising activities.
The above allegations contained in the Department of Business Oversight’s cease and desist order have not been proven, and the issuance of a cease and desist order represents the Department’s initiation of a formal proceeding in which findings as to the allegations in the cease and desist order have not been made, and does not represent a decision as to any of the allegations contained in the cease and desist order.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery and our securities attorneys have successfully resolved over 1000 investment loss cases over the past 20 years. Recoveries for clients top $40 million. The types of claims we have successfully handled include those involving unsuitable investments (suitability claims), excessive trading or “churning”, misrepresentations and omissions, unauthorized trading, over-concentration of illiquid or overly risky investments, pump and dump scams involving “penny stocks”, direct participation programs (private placements) involving real estate investment trusts (REITS), oil and gas exploration programs, leasing equipment deals and receivable financing, promissory notes whether sold through a broker dealer or as part of the outside business activities of a registered representative, ponzi scheme losses, failure on the part of the broker dealer to perform due diligence, state securities law (blue sky) violations and failure to supervise.
If you have suffered investment losses please call The Law Office of David Liebrader at (702) 380-3131 for a free, confidential consultation