State of California - Department of Corporations
STATE OF CALIFORNIA
BUSINESS, TRANSPORTATION AND HOUSING AGENCY
DEPARTMENT OF CORPORATIONS
TO: US Dinar Bank
US DinarEx
David http://iqd.me/l/11
165 West Maple Street
San Diego, CA 92103
DESIST AND REFRAIN ORDER
(For violations of sections 25110, 25401, 29520, 29535 and 29236 of the Corporations Code)
The California Corporations Commissioner (“Commissioner”) finds that:
1.
US Dinar Bank is an entity that does business and has offices located in California but is
not registered with the California Secretary of State. After the California Department of Financial Institutions contacted US Dinar Bank about the use of the word “bank” in its name, US Dinar Bank changed its name to US DinarEx on April 14, 2011. US Dinar Bank and US DinarEx (hereinafter “US Dinar”) have never been registered with the United States Commodity Futures Trading Commission (“CFTC”) or a member of the National Futures Association (“NFA”).
2.
David http://iqd.me/l/11 (“Pratt”) during relevant times resided in California and acted as the CEO
or manager of US Dinar and was responsible for the operations of US Dinar. http://iqd.me/l/11 solicited investors on the internet via US Dinar’s websites at www.usdinarbank.com and www.usdinarex.com. The websites offer investors an Iraqi bank account for dinar and dollar exchange. (The dinar is the currency of Iraq.) http://iqd.me/l/11 has never been registered with the CFTC or a member of the NFA.
3.
US Dinar and http://iqd.me/l/11 provided potential investors with an information package. http://iqd.me/l/11
told investors that US Dinar will open an interest (3%) bearing Iraqi savings account at a large commercial bank in Iraq, Al Warka Bank. This account would enable an investor to buy and sell dinars and have online review 24/7.
4. http://iqd.me/l/11 stated that the bank account is managed by William Burbank and that the return on an investment would be four times the initial investment within a short period of time and investors
would be charged 20% of the total profit for managing the account. http://iqd.me/l/11 offered dinars at a “discount” for between 75 and 85 cents and stated dinars would be listed on FOREX, the foreign exchange market. http://iqd.me/l/11 stated “the Dinar will open trading at between $1.50-$2.00 minimum.” http://iqd.me/l/11 projected the Dinar to rise “within days to the $3.00-$3.50 range.”
5. US Dinar solicits clients that are unsophisticated individuals with minimal or no
investment experience. A client receives and signs a customer agreement in which US Dinar agrees to accept a customer and to open and maintain accounts for dinar trading in which US Dinar is authorized to act as broker or agent, or as principal to execute a customer’s orders.
6.
US Dinar and http://iqd.me/l/11 violated provisions of the California Corporate Securities Law
of 1968 and the California Commodity Law of 1990, respectively set forth in Corporations Code section 25000 et seq. and section 29500 et seq.
7.
US Dinar’s offering of an interest bearing Iraqi “custodial” bank account is an
investment contract that is not exempt from the qualification requirements of the Corporate Securities Law of 1968. US Dinar and http://iqd.me/l/11 offered or sold investment contracts in violation of Corporations Code sections 25110.
8.
US Dinar and http://iqd.me/l/11 offered and sold commodity contracts or options to investors by
means of fraudulent acts, which are in violation of Corporations Code sections 25401 and 29536. These include, but are not limited to, the following misrepresentations and omissions of material fact: MISREPRESENTATIONS
a. US Dinar Bank was not a “Bank” or financial institution;
b. Investors would receive a return of three percent (3%) on the amount of their respective investment; OMISSIONS
a.
US Dinar Bank, US DinarEx and David http://iqd.me/l/11 were not registered with
the CFTC; and,
b. US Dinar Bank, US DinarEx and David http://iqd.me/l/11 did not qualify the investment offerings in California.
9.
US Dinar sold or purchased, offered to sell or purchase commodity contracts or options,
or offered to enter into, or entered into as a seller or purchaser commodity contracts or options in California.
10.
The commodity contracts and options that US Dinar sold or purchased, offered to sell
or purchase, or offered to enter into or entered into as a seller or purchaser on behalf of investors, were primarily for speculative or investment purposes, in that, the contracts were offered, purchased, sold, or entered into based on quoted price changes and fluctuations in particular contracts, rather than as a means of acquiring these physical commodities.
11.
The contracts or options US Dinar sold or purchased, offered for sale or purchased, or
offered to enter into or entered into as a seller or purchaser are commodity contracts and commodity options, as respectively defined in Corporations Code sections 29505 and 29510.
12.
US Dinar’s above-described transactions do not meet the exemptions found in sections
29530, 29531 and 29532 of the Corporations Code and are in violation of Corporations Code section 29520.
13.
Corporations Code section 29509 defines a commodity merchant as a futures
commission merchant, commodity pool operator, commodity trading advisor, introducing broker, leverage transaction merchant, an associated person of the foregoing, a floor broker and any other person required to register with the CFTC.
14.
Corporations Code section 29535 states no person shall engage in the trade or business
or otherwise act as a commodity merchant unless the person is registered or temporarily licensed with the CFTC for each activity constituting that person as a commodity merchant. US Dinar acted as a commodity merchant and is not exempt from the registration and licensing requirements.
15. Corporations Code section 29536 states it is unlawful for any person, directly or
indirectly, in connection with the purchase or sale of, the offer to sell, the offer to purchase, the offer to enter into, or the entry into, a commodity, commodity contract, or commodity option to do any of the following: (a) to willfully employ any device, scheme, or artifice to defraud, (B) to willfully make any false report, enter any false record, make any untrue statement of a material fact, or omit to state a material fact necessary in order to make the statements made, in the light of
the circumstances under which they were made, not misleading, © to willfully engage in any transaction, act, practice, or course of business which operates or would operate as a fraud or deceit upon any persons, or (d) to willfully misappropriate or convert the funds, security, or property of any other person.
16. US Dinar Bank, US DinarEx and David http://iqd.me/l/11 failed to comply with the qualification provisions when they offered and sold securities in violation of Corporations Code section 25110.
17. US Dinar Bank, US DinarEx and David http://iqd.me/l/11 made misrepresentations or omissions of material facts that violated Corporations Code section 25401.
Based upon the foregoing, the California Corporations Commissioner is of the opinion that US Dinar Bank, US DinarEx and David http://iqd.me/l/11 sold or purchased, or offered to sell or purchase commodities under commodity contracts or options, or offered to enter into, or entered into, as a seller or purchaser commodity contracts or options.
Pursuant to section 29542 of the Corporations Code, US Dinar Bank, US DinarEx and David http://iqd.me/l/11 are hereby ordered to desist and refrain from the further sale or purchase or offer to sell or purchase any commodity contract or under any commodity option, including, but not limited to, contracts and from the further offer to enter into, or entering into, as sellers or purchasers of any commodity contract or any commodity option in the State of California, unless and until such activity is not in violation of Corporations Code section 29520 of the law.
The Commissioner is of the opinion that US Dinar Bank, US DinarEx and David http://iqd.me/l/11 are engaged in a trade or business as a commodity merchant without registration or licensure, then in effect, in violation of Corporations Code section 29535.
Pursuant to Corporations Code section 29542, US Dinar Bank, US DinarEx and David http://iqd.me/l/11 are hereby ordered to desist and refrain from conducting business as a commodity merchant in the State of California, until registration or licensure has been made with the CFTC or unless exempt.
The Commissioner is of the opinion that US Dinar Bank, US DinarEx and David http://iqd.me/l/11 engaged in the above-described offer and sale of commodities, commodity contracts or commodity options in this State by willfully making an untrue statement of material fact or omitting to state a
material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading.
Pursuant to Corporations Code section 29542, US Dinar Bank, US DinarEx and David http://iqd.me/l/11 are hereby ordered to desist and refrain from offering or selling any commodity, commodity contracts or commodity options in the State of California by means of any fraudulent act including, but not limited to, willfully making an untrue statement of material fact or omitting to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading.
The California Corporations Commissioner is of the opinion that the activities of US
Dinar Bank, US DinarEx and David http://iqd.me/l/11 involve the unqualified offers or sales of securities in California that are subject to qualification under the CSL, without such offers or sales first being qualified or exempt, in violation of Corporations Code section 25110.
Pursuant to Corporations Code section 25532, US Dinar Bank, US DinarEx and David http://iqd.me/l/11 are hereby ordered to desist and refrain from the further offer or sale of securities including, but not limited to, investment contracts, unless and until the offers and sales have been duly qualified under the Corporate Securities Law or unless exempt.
The California Corporations Commissioner is also of the opinion that such offers and sales of securities in this state were made by means of written or oral communications which included an untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, in violation of Corporations Code section 25401.
Pursuant to Corporations Code section 25532, US Dinar Bank, US DinarEx and David http://iqd.me/l/11 are hereby ordered to desist and refrain from offering or selling or buying or offering to buy any security in the State of California by means of any written or oral communication which includes an untrue statement of a material fact or omits to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading.
/ / /
This Order is necessary, in the public interest, for the protection of investors and consistent with the purposes, policies, and provisions of the California Commodity Law of 1990 and the Corporate Securities Law of 1968.
Dated: June 10, 2011
Los Angeles, California
PRESTON DuFAUCHARD
California Corporations Commissioner
By________________________________
ALAN S. WEINGER
Deputy Commissioner Enforcement Division
http://www.corp.ca.g...inarBank_dr.pdf
Read more: http://dinarvets.com/forums/index.php?/topic/75869-desist-and-refrain-order-for-david-httpiqdmel11legal-document/?s=f46a79968c633f3034c3498e31f028cd#ixzz1Sh1hnrpb
STATE OF CALIFORNIA
BUSINESS, TRANSPORTATION AND HOUSING AGENCY
DEPARTMENT OF CORPORATIONS
TO: US Dinar Bank
US DinarEx
David http://iqd.me/l/11
165 West Maple Street
San Diego, CA 92103
DESIST AND REFRAIN ORDER
(For violations of sections 25110, 25401, 29520, 29535 and 29236 of the Corporations Code)
The California Corporations Commissioner (“Commissioner”) finds that:
1.
US Dinar Bank is an entity that does business and has offices located in California but is
not registered with the California Secretary of State. After the California Department of Financial Institutions contacted US Dinar Bank about the use of the word “bank” in its name, US Dinar Bank changed its name to US DinarEx on April 14, 2011. US Dinar Bank and US DinarEx (hereinafter “US Dinar”) have never been registered with the United States Commodity Futures Trading Commission (“CFTC”) or a member of the National Futures Association (“NFA”).
2.
David http://iqd.me/l/11 (“Pratt”) during relevant times resided in California and acted as the CEO
or manager of US Dinar and was responsible for the operations of US Dinar. http://iqd.me/l/11 solicited investors on the internet via US Dinar’s websites at www.usdinarbank.com and www.usdinarex.com. The websites offer investors an Iraqi bank account for dinar and dollar exchange. (The dinar is the currency of Iraq.) http://iqd.me/l/11 has never been registered with the CFTC or a member of the NFA.
3.
US Dinar and http://iqd.me/l/11 provided potential investors with an information package. http://iqd.me/l/11
told investors that US Dinar will open an interest (3%) bearing Iraqi savings account at a large commercial bank in Iraq, Al Warka Bank. This account would enable an investor to buy and sell dinars and have online review 24/7.
4. http://iqd.me/l/11 stated that the bank account is managed by William Burbank and that the return on an investment would be four times the initial investment within a short period of time and investors
would be charged 20% of the total profit for managing the account. http://iqd.me/l/11 offered dinars at a “discount” for between 75 and 85 cents and stated dinars would be listed on FOREX, the foreign exchange market. http://iqd.me/l/11 stated “the Dinar will open trading at between $1.50-$2.00 minimum.” http://iqd.me/l/11 projected the Dinar to rise “within days to the $3.00-$3.50 range.”
5. US Dinar solicits clients that are unsophisticated individuals with minimal or no
investment experience. A client receives and signs a customer agreement in which US Dinar agrees to accept a customer and to open and maintain accounts for dinar trading in which US Dinar is authorized to act as broker or agent, or as principal to execute a customer’s orders.
6.
US Dinar and http://iqd.me/l/11 violated provisions of the California Corporate Securities Law
of 1968 and the California Commodity Law of 1990, respectively set forth in Corporations Code section 25000 et seq. and section 29500 et seq.
7.
US Dinar’s offering of an interest bearing Iraqi “custodial” bank account is an
investment contract that is not exempt from the qualification requirements of the Corporate Securities Law of 1968. US Dinar and http://iqd.me/l/11 offered or sold investment contracts in violation of Corporations Code sections 25110.
8.
US Dinar and http://iqd.me/l/11 offered and sold commodity contracts or options to investors by
means of fraudulent acts, which are in violation of Corporations Code sections 25401 and 29536. These include, but are not limited to, the following misrepresentations and omissions of material fact: MISREPRESENTATIONS
a. US Dinar Bank was not a “Bank” or financial institution;
b. Investors would receive a return of three percent (3%) on the amount of their respective investment; OMISSIONS
a.
US Dinar Bank, US DinarEx and David http://iqd.me/l/11 were not registered with
the CFTC; and,
b. US Dinar Bank, US DinarEx and David http://iqd.me/l/11 did not qualify the investment offerings in California.
9.
US Dinar sold or purchased, offered to sell or purchase commodity contracts or options,
or offered to enter into, or entered into as a seller or purchaser commodity contracts or options in California.
10.
The commodity contracts and options that US Dinar sold or purchased, offered to sell
or purchase, or offered to enter into or entered into as a seller or purchaser on behalf of investors, were primarily for speculative or investment purposes, in that, the contracts were offered, purchased, sold, or entered into based on quoted price changes and fluctuations in particular contracts, rather than as a means of acquiring these physical commodities.
11.
The contracts or options US Dinar sold or purchased, offered for sale or purchased, or
offered to enter into or entered into as a seller or purchaser are commodity contracts and commodity options, as respectively defined in Corporations Code sections 29505 and 29510.
12.
US Dinar’s above-described transactions do not meet the exemptions found in sections
29530, 29531 and 29532 of the Corporations Code and are in violation of Corporations Code section 29520.
13.
Corporations Code section 29509 defines a commodity merchant as a futures
commission merchant, commodity pool operator, commodity trading advisor, introducing broker, leverage transaction merchant, an associated person of the foregoing, a floor broker and any other person required to register with the CFTC.
14.
Corporations Code section 29535 states no person shall engage in the trade or business
or otherwise act as a commodity merchant unless the person is registered or temporarily licensed with the CFTC for each activity constituting that person as a commodity merchant. US Dinar acted as a commodity merchant and is not exempt from the registration and licensing requirements.
15. Corporations Code section 29536 states it is unlawful for any person, directly or
indirectly, in connection with the purchase or sale of, the offer to sell, the offer to purchase, the offer to enter into, or the entry into, a commodity, commodity contract, or commodity option to do any of the following: (a) to willfully employ any device, scheme, or artifice to defraud, (B) to willfully make any false report, enter any false record, make any untrue statement of a material fact, or omit to state a material fact necessary in order to make the statements made, in the light of
the circumstances under which they were made, not misleading, © to willfully engage in any transaction, act, practice, or course of business which operates or would operate as a fraud or deceit upon any persons, or (d) to willfully misappropriate or convert the funds, security, or property of any other person.
16. US Dinar Bank, US DinarEx and David http://iqd.me/l/11 failed to comply with the qualification provisions when they offered and sold securities in violation of Corporations Code section 25110.
17. US Dinar Bank, US DinarEx and David http://iqd.me/l/11 made misrepresentations or omissions of material facts that violated Corporations Code section 25401.
Based upon the foregoing, the California Corporations Commissioner is of the opinion that US Dinar Bank, US DinarEx and David http://iqd.me/l/11 sold or purchased, or offered to sell or purchase commodities under commodity contracts or options, or offered to enter into, or entered into, as a seller or purchaser commodity contracts or options.
Pursuant to section 29542 of the Corporations Code, US Dinar Bank, US DinarEx and David http://iqd.me/l/11 are hereby ordered to desist and refrain from the further sale or purchase or offer to sell or purchase any commodity contract or under any commodity option, including, but not limited to, contracts and from the further offer to enter into, or entering into, as sellers or purchasers of any commodity contract or any commodity option in the State of California, unless and until such activity is not in violation of Corporations Code section 29520 of the law.
The Commissioner is of the opinion that US Dinar Bank, US DinarEx and David http://iqd.me/l/11 are engaged in a trade or business as a commodity merchant without registration or licensure, then in effect, in violation of Corporations Code section 29535.
Pursuant to Corporations Code section 29542, US Dinar Bank, US DinarEx and David http://iqd.me/l/11 are hereby ordered to desist and refrain from conducting business as a commodity merchant in the State of California, until registration or licensure has been made with the CFTC or unless exempt.
The Commissioner is of the opinion that US Dinar Bank, US DinarEx and David http://iqd.me/l/11 engaged in the above-described offer and sale of commodities, commodity contracts or commodity options in this State by willfully making an untrue statement of material fact or omitting to state a
material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading.
Pursuant to Corporations Code section 29542, US Dinar Bank, US DinarEx and David http://iqd.me/l/11 are hereby ordered to desist and refrain from offering or selling any commodity, commodity contracts or commodity options in the State of California by means of any fraudulent act including, but not limited to, willfully making an untrue statement of material fact or omitting to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading.
The California Corporations Commissioner is of the opinion that the activities of US
Dinar Bank, US DinarEx and David http://iqd.me/l/11 involve the unqualified offers or sales of securities in California that are subject to qualification under the CSL, without such offers or sales first being qualified or exempt, in violation of Corporations Code section 25110.
Pursuant to Corporations Code section 25532, US Dinar Bank, US DinarEx and David http://iqd.me/l/11 are hereby ordered to desist and refrain from the further offer or sale of securities including, but not limited to, investment contracts, unless and until the offers and sales have been duly qualified under the Corporate Securities Law or unless exempt.
The California Corporations Commissioner is also of the opinion that such offers and sales of securities in this state were made by means of written or oral communications which included an untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, in violation of Corporations Code section 25401.
Pursuant to Corporations Code section 25532, US Dinar Bank, US DinarEx and David http://iqd.me/l/11 are hereby ordered to desist and refrain from offering or selling or buying or offering to buy any security in the State of California by means of any written or oral communication which includes an untrue statement of a material fact or omits to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading.
/ / /
This Order is necessary, in the public interest, for the protection of investors and consistent with the purposes, policies, and provisions of the California Commodity Law of 1990 and the Corporate Securities Law of 1968.
Dated: June 10, 2011
Los Angeles, California
PRESTON DuFAUCHARD
California Corporations Commissioner
By________________________________
ALAN S. WEINGER
Deputy Commissioner Enforcement Division
http://www.corp.ca.g...inarBank_dr.pdf
Read more: http://dinarvets.com/forums/index.php?/topic/75869-desist-and-refrain-order-for-david-httpiqdmel11legal-document/?s=f46a79968c633f3034c3498e31f028cd#ixzz1Sh1hnrpb
