Oklahoma Dept. of Securities Administrator Irving Faught: Car Note Firms Broke Law

Article excerpt

OKLAHOMA CITY - The Oklahoma Department of Securities has accused the online investment website Buy Car Notes.com of violating state law by selling unregistered securities, ending a months-long investigation into the company's business practices.

"The results of the investigation have led us to believe there has in fact been a violation of state securities law," said Irving Faught, administrator for the Department of Securities.

Buy Car Notes has until the end of the month to respond to a cease-and-desist order Department of Securities has issued ordering the company to halt its operations in the state.

The Department of Securities could additionally order the company to pay up to $5,000 for each time it has violated state law by selling unregistered securities or a one-time fine of $250,000.

A Houston investor named David Hamer sued Buy Car Notes.com's sister company, Invest in Car Notes.com Inc., in August for breach of contract. Hamer claims in his lawsuit the he had stopped receiving monthly checks for the interest on $25,000 he invested with the company.

Faught declined to comment on whether the Department of Securities had received complaints from any other investors in the two companies. …