Arizona utilities regulators decide 2 must pay back nearly $400K in fraud cases

Oct 29, 2021, 11:15 AM
(Twitter Photo/Arizona Corporation Commission)...
(Twitter Photo/Arizona Corporation Commission)
(Twitter Photo/Arizona Corporation Commission)

PHOENIX – Public utilities regulators in Arizona have fined two men for fraudulent sales in separate cases, and ordered them to pay back nearly $400,000 combined.

The Arizona Corporation Commission said Thursday in a press release that William Melvin Hawkins and Scottsdale-based Biomed Pharma Group must pay $243,630 in restitution for fraudulently offering and selling unregistered company stock.

Mario Sosa of Phoenix must pay $155,300 in restitution for offering and selling an unregistered cryptocurrency investment.

Hawkins and Biomed Pharma weren’t registered with the commission as securities sellers or dealers, the panel said.

Hawkins also failed to tell investors that the commission had revoked his securities salesman registration in 2007. That banned him selling unregistered securities in the state.

The panel said Hawkins also still owed more than $1 million in restitution.

He and the company were also fined $30,000.

Sosa, the commission said, “touted investment returns of more than 300% when selling the crypto investments, claiming investor funds would earn income through the buying and selling of cryptocurrency or by the purchase of machines that would ‘mine’ various virtual currencies.”

Instead, the panel found that Sosa didn’t disclose the risks related to cryptocurrency and that he hadn’t mentioned that other investors hadn’t been able to withdraw principal and interest as he had promised.

Sosa was also assessed $20,000 in an administrative penalty.

Lifetime Windows & Doors

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

(AP Photo/Alex Brandon, File)...

Arizona Sen. Kyrsten Sinema leaves Democratic Party, registers as independent

Arizona Sen. Kyrsten Sinema announced Friday she is registering as an independent, leaving the Democratic Party but promising her work won't change.
6 hours ago
FILE - Border Patrol agents patrol along a line of shipping containers stacked near the border on A...
Kevin Stone

Arizona border sheriff backs protesters impeding shipping container installation

A southern Arizona sheriff said protesters have been keeping crews from stacking shipping containers at the U.S.-Mexico border, and he's good with it.
6 hours ago
(AP Photo/Oliver de Ros)...

Guatemalan man facing charges after allegedly assaulting Arizona border patrol agent

A Guatemalan man was arrested last week for allegedly assaulting a border patrol agent while he was illegally crossing the border.
6 hours ago
(Arizona Department of Transportation Flickr Photo)...

No scheduled closures on Phoenix-area freeways for third consecutive weekend

Phoenix-area drivers won't have to worry about closures on freeways for a third straight weekend as there are no scheduled projects.
6 hours ago
(Facebook Photo/Ballet Arizona -- Twitter Photo/@ArizonaCoyotes)...

Weekend guide: Here are the biggest events around metro Phoenix for Dec. 9-11

The Arizona Coyotes are back in town, more holiday festivities are underway and museums could be your next favorite winter go-to spot.
6 hours ago

Charles Barkley happy for Brittney Griner’s Russia release, feels for still-imprisoned Paul Whelan

Charles Barkley is happy fellow Valley basketball icon Brittney Griner was released from Russia in a prisoner swap, but feels for Paul Whelan.
1 day ago

Sponsored Articles

Quantum Fiber

How high-speed fiber internet edges out cable for everyday use

In a world where technology drives so much of our daily lives, a lack of high-speed internet can be a major issue.
Quantum Fiber

How high-speed fiber internet can improve everyday life

Quantum Fiber supplies unlimited data with speeds up to 940 mbps, enough to share 4K videos with coworkers 20 times faster than a cable.
Children’s Cancer Network

Children’s Cancer Network celebrates cancer-fighting superheroes, raises funds during September’s Childhood Cancer Awareness Month

Jace Hyduchak was like most other kids in his kindergarten class: He loved to play basketball, dress up like his favorite superheroes and jump as high as his pint-sized body would take him on his backyard trampoline.
Arizona utilities regulators decide 2 must pay back nearly $400K in fraud cases