This week, the Arizona Corporation Commission ordered a Scottsdale man, Tarleton J. Karry and Grand Oak Enterprises, LLC to pay $403,000 in restitution to investors and a $96,000 administrative penalty for fraudulently selling promissory notes.
The Commission found that Karry sold the unregistered notes to seven investors, some of whom were friends, acquaintances and one who was a former, financial services client. The Commission found Karry represented himself and his affiliated company as a middleman for a construction company that would use investor funds for real estate projects with promises of interest payments paid to investors from Karry and Grand Oak Enterprises, LLC.
However, the Commission found Karry and his affiliated company failed to disclose to investors the financial risks or provide documentation associated with the investments, and that Karry was not registered to offer or sell investments in Arizona at the time of the sale. Karry was formerly registered as a securities salesman with the Corporation Commission’s Securities Division until April 2016.