PHOENIX – A New Mexico woman, Kerease Margita Gillman, has been ordered to pay $315,000 in restitution and $50,000 in administrative penalties for committing securities fraud in connection with her Arizona limited liability companies.
According to the Arizona Corporation Commission, Gillman sold 20 unregistered investment contracts to investors who purchased shares in three entities: 2009, 2010 and 2011 Arizona Acquisitions, LLC.
The Commission found that Gillman purchased some tax liens but used most of the investor capital contributions to pay for personal expenses unrelated to the three investment entities. Additionally, the Commission found that Gillman falsely represented that she would dissolve the three investment entities after five years and distribute the proceeds to investors.
To this day, none of the investors, most of whom who live in Arizona, have received any return on their investment.
In settling this matter, Mrs. Gillman admitted to the Commission’s findings and agreed to the entry of the consent order, according to the Commission.