A former Phoenix investment promoter, David Paul French, has been sanctioned for committing securities fraud a second time by the Arizona Corporation Commission.
The Commission ordered French and his affiliated companies to pay $851,030 in restitution and a $50,000 administrative penalty for defrauding investors for a second time.
The Commission found that French, Sun State Property Preservation, LLC and Wattenberg, LLC. fraudulently offered and sold company stocks, units or shares to at least 29 investors while not registered as a securities salesman or dealer. The Commission found French and his affiliated companies made multiple misrepresentations and material omissions to investors.
This is the second time the Corporation Commission’s Securities Division has taken legal action against French and his affiliated companies.
In August 2002, the Corporation Commission took action against French and others for their fraudulent offerings and sales of securities involving an automobile-sale-lease-back business. In 2003, French pled guilty to fraud schemes and theft. French was sentenced to three and a one-half years in prison and seven years’ probation.
In that case, the Corporation Commission found that French and his affiliated companies failed to disclose to investors his prior criminal fraud and theft conviction and administrative actions against him.
In settling this matter, French and his affiliated companies are admitting to the Commission’s findings.