A Phoenix man, Theodore W. Fowler, and his company, Whispering Creek Investments, have been ordered to pay $1.16 million in restitution and a $50,000 administrative penalty for committing securities fraud.
The fraud was committed in connection with an unregistered real estate investment program.
According to the Arizona Corporation Commission, Fowler was a licensed insurance producer and real estate salesperson when he and his company, Whispering Creek Investments, raised funds from eight investors to fund fix-and-flip and new-build real estate transactions.
Fowler was also found by the Commission to have touted his business success while failing to disclose his bankruptcy to at least one investor.
The Commission also found that Fowler used a portion of investor funds on other expenses not related to the investments and on other real estate properties not disclosed to investors.
According to the Arizona Corporation Commission, “in settling this matter, the respondents admitted to the Commission’s findings only for the purposes of this proceeding and agreed to the entry of the consent order.”