Arizona resident, Adam W. Child, agreed to pay $2,014,592 in restitution and a $25,000 administrative penalty for selling promissory notes and LLC membership interests to investors.
According to the Arizona Corporation Commission found that Child offered and sold notes and membership interests to at least 17 investors of Titan Funding Group I, LLC and Titan Capital Real Estate Fund I, LLC. The Commission found the investor funds were pooled to lend money to real estate developers who were to purchase and “flip” residential properties.
However, the Commission found that Child violated the Securities Act’s anti-fraud provisions when he failed to disclose to investors a previous judgment against him, that he had declared bankruptcy and that his prior mortgage-lending business had its license revoked.
As part of the settlement, Child agreed to the entry of the consent order and admitted to the Commission’s findings only for purposes of the administrative proceeding.