State says Ontario man fined for selling fraudulent securities – investment scam – and it’s still going on…
From Oregon Department of Consumer and Business Services:
The Oregon Department of Consumer and Business Services (DCBS), Division of Financial Regulation has fined an Ontario man and his companies for securities fraud and perpetuating a community-wide investment scam. The division fined Robert D. Doughty of Ontario and his companies — Inland Pacific Energy Center and Global Alternative Energies Centers — $35,000 for selling fraudulent securities to at least 12 people.
Oregonians should beware that Robert D. Doughty — who goes by Bob Doughty — is still soliciting investments into the scam.
In a cease-and-desist order issued on Sept. 21st, the department levied the $35,000 fine and ordered Doughty to stop violating Oregon securities law.
Starting in 2005, Doughty convinced at least 12 people to invest a total of $250,000 into a biodiesel and ethanol refinery in Stanfield, Oregon – a facility that did not exist. The investment money was used to promote the scheme and pay for extensive travel, lodging, and food expenses for Doughty.
The scheme involved community meetings and pitches and pleas for support to the local press, Oregon State University, and city council members.
Doughty claimed to own land in Stanfield, and that he was going to build a refining plant that produced biodiesel, ethanol, industrial chemicals, agriculture feed, and pharmaceutical ingredients. At various times since 2005, Doughty claimed to have $120 million in equity funding committed, $545 million in funding committed, and $5.6 billion in pending financing, implied that local governments were involved with the project and said he applied for permits to begin construction.
None of these claims were ever true and Doughty continues to solicit investments via Linkedin.com.
In addition, Doughty does not have the required securities license to solicit or sell investments, nor are his investments registered in Oregon, both required by state securities law. Anyone considering an investment with Doughty or his companies — Inland Pacific Energy Center and Global Alternative Energies Centers — should immediately call the division at 866-814-9710 (toll-free).
“This is another reminder of how important it is to check out proposed investments and the person promoting them,” said Jean Straight, acting DCBS director. “Renewable energy, gold, silver, oil, gas, new tech ventures, and legal marijuana are all buzzworthy industries that scammers like to use to take your money. We urge anyone considering an investment to contact us to verify the information.”
Information about licensing, registration, and enforcement history for individuals and companies can be found on the division website at dfr.oregon.gov or by calling 866-814-9710 (toll-free).
The full order can be read at http://dfr.oregon.gov/AdminOrders/enf-orders-2017/S-17-0063.pdf.