ALABAMA SECURITIES
COMMISSION
770 WASHINGTON AVE, SUITE 570
MONTGOMERY, ALABAMA 36130-4700
TELEPHONE (334) 242-2984
1-800-222-1253
FAX (334) 242-0240
E-MAIL asc@asc.state.al.us
FOR IMMEDIATE RELEASE
Investor
Protection Alert
ASC Halts
UNITE1--Looks Like MN Partners Scam
MONTGOMERY, ALABAMA
(May 9, 2001) Joseph P. Borg, Director of the Alabama Securities
Commission, announced today that the Alabama Securities Commission has issued a
Cease and Desist Order against UNITE1 Investments, an Arizona Business entity,
to stop conducting business in the state of Alabama. UNITE1 Investments has used the following addresses: 2733 North Power Road, Suite 102-410, Mesa
Arizona 85206 and Box 20370, Mesa Arizona 85277.
The Alabama Securities Commission (ASC) received
information that UNITE1 engaged in the offer and/or sale of securities in the
form of units in a twelve month term loan agreement in the states of Alabama
and Arizona. Mr. Borg said,
"UNITE1 is not registered as a dealer or agent in the state of Alabama
which is a violation of Section
8-6-3(a), Code of Alabama 1975."
Mr. Borg also noted,
"This has a striking resemblance to MN Partners, Inc., an illegal Ponzi
and pyramid loan scam that was operating out of Phenix City, Alabama--which was
just recently shut down by the Commission." The UNITE1 loan program claims to pay investors up to $125,000
within twelve months for a one-time advance fee ranging from $250.00 to
$750.00. Borg said, "Does this sound
to good to be true? Yes, which is the
first indication that this may be a scam.
In this type of scheme the first few investors at the top of the pyramid
receive the promised returns, while the rest of the investors lose their
money."
- more -
"I suspect these numbers will show that you would quickly exceed the world
population for membership requirements in order to fund a small portion of
investors--just like in the MN Partners, Inc. loan scam."
The Alabama Securities
Commission is dedicated to promoting financial literacy and fraud
prevention. The Director of the Alabama
Securities Commission cautions potential investors to thoroughly check out any
investment opportunity. For inquiries
regarding securities dealers, to report suspected fraud, or obtain consumer
information call 1-800-222-1253.
There is a vast amount of free investment information on the Internet, the best starting point is at the NASAA website (http://www.nasaa.org/), take the main menu to Investor Education and enter into the Investor Tips section. Numerous articles are provided at this website for free or you may call or write the Alabama Securities Commission - Division of Training and Public Affairs. Phone 1-800-222-1253 or send your request to the Alabama Securities Commission, Training and Public Affairs, 770 Washington Ave., Suite 570, Montgomery, Alabama 36130-4700.
###
FOR
ADDITIONAL INFORMATION CONTACT:
Joseph P. Borg
Director
Alabama Securities Commission
(334) 242-2984
Daniel G. Lord
Training and Public Affairs
Alabama Securities Commission
(334) 242-2984