Interlake Chemicals Consents to Order re Business Opportunity Fraud Statute
The State of Washington reports that Glen Stroud, Dan Hammond and Interlake Chemicals have consented to an order under the Business Opportunity Fraud Act of Washington.
None of the defendants admitted or denied the allegations made, viz. that they were selling unregistered business opportunities in the State of Washington.
"On December 3, 2007, the Securities Administrator of the State of Washington issued Statement of Charges, S-07-293-07-SC01, against the Respondents, Glen Stroud, Dan Hammond, and Interlake Chemicals International Ltd. Corp.The Securities Division and Glen Stroud, Dan Hammond, and Interlake Chemicals International Ltd. Corp. do hereby agree to this Consent Order in settlement of the above captioned matter.
The Securities Division has, in the Statement of Charges, made certain allegations and conclusions, set forth under the headings "Tentative Findings of Fact" and "Conclusions of Law."
Glen Stroud, Dan Hammond, and Interlake Chemicals International Ltd. Corp. neither admit nor deny the Tentative Findings of Fact and Conclusions of Law, which are hereby incorporated by reference into this Consent Order.
Nothing in this Consent Order is intended to be construed as an admission in another proceeding in which the Securities Division, Department of Financial Institutions, State of Washington is not a party."
The defendants have agreed to cease and desist from offering or selling business opportunities in violation of RCW 19.110.050, the registration section of the Business Opportunity Fraud Act of Washington.
Interlake Chemicals is located in Manitoba. And reportedly sells its distributorships to Americans.
I am unaware of any significant difference between the State of Washington's Business Opportunity Fraud Act and the other state's Business Opportunity Fraud Acts which would allow Interlake Chemicals to sell their distributions in a registration state.
Further, the new FTC Business Opportunity Rule, when passed would cover any holes between the registrant and non-registrant states.
If you are selling business opportunities, you have to register and in the short future provide an FTC disclosure document, tailored to business opportunities.
