A Laveen man, Carlton Lamont Fox, and his affiliated company, Fox First Services, have been ordered by the Arizona Corporation Commission to pay restitution and an administrative penalty for participating in the unlawful sale of securities as an unregistered salesperson or dealer.
According to the Commission, at least 17 investors were promised a return on their initial investment within 3-6 months, funding either the purchase of leads for prospective businesses that were interested in credit card reader terminals or for the purchase of the terminals that would be subsequently sold to interested businesses.
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The Commission found that none of the investors received a full return of their original investment, and that Fox used some of the money to pay telemarketers for their work in soliciting investor funds.
According to the Commission, as part of the settlement respondents neither admitted nor denied the Commission findings, but agreed to the entry of the Commission’s consent order.
Fox and his company must pay $15,200 in restitution and a $5,000 administrative penalty.