Former Scottsdale resident Darrell G. Knoch and Imagine Enterprises, LLC have been hit with a default order for committing securities fraud in connection with unregistered “fix-and-flip” real estate investments.
The Corporation Commission’s default order requires Knoch and Imagine Enterprises to pay $906,641 in restitution and $50,000 in administrative penalties for their violations. The Corporation Commission found that, while not registered to sell securities in Arizona, Knoch and his company failed to disclose to at least six investors that he had suspended promised interest payments to a prior investor and failed to return that investor’s principal investment.
The Corporation Commission also found that Knoch failed to disclose to investors that he filed for bankruptcy in 2014.