The owner of Shadow Beverages and Snacks, LLC, in Chandler has been found by the Arizona Corporation Commission to have violated securities laws and defrauded many of his investors.
In addition to restitution, the Commission ordered Lucio George Martinez and his company to pay an administrative penalty of $50,000 for their securities violations.
The Commission found that, while not registered as an Arizona securities salesman or dealer, Martinez and his company raised a total of $2.14 million from the sale of unregistered securities. The Commission found, that none of the 17 investments were repaid when they came due. The Commission also found in most of the transactions, investors were not told about the prior defaults before making their investments.
Additionally, some investors were not told about a prior judgement against Shadow Beverages and Snacks, LLC.
The Commission also determined that Martinez and his company repaid the full principal amount for five of the investments and partially repaid the principal for another five investments, paying out a total of $552,500.