NOTE: This is an OCR copy of the original agency document at the following link: http://www.securities.state.ut.us/dockets/03006301.pdf
Eric Krieg's information on Geet
Division of Securities
Utah Department of Commerce
160 Fast 300 South
P.O. Box 146760
Salt Lake City, Utah 84114-6760
Telephone: 801 530-6600
Facsimile: 801 530-6980
BEFORE THE DIVISION OF SECURITIES
OF THE DEPARTMENT OF COMMERCE
OF THE STATE OF UTAH
IN THE MATTER OF: EMERGENCY ORDER TO CEASE AND
DESIST AND ORDER TO SHOW CAUSE
PAUL PANTONE Docket No. SD-03-0063
GEET Docket No. SD-03-0062
Respondent.
This matter comes before the Director ("Director") of the Utah Division of Securities ("the Division") upon allegations of Division staff that Paul Pantone and Global Environmental Energy Technology (GEET) have engaged in acts and practices that constitute violations of the Utah Uniform Securities Act, Utah Code Ann. § 61-1-1, et seq. ("the Act").
Pantone does business under numerous variations on the GEET company name. These GEET companies are referred to collectively in this order as "GEET".
Having reviewed the relevant facts discovered in the course of the matter, the Division staffs investigation of this matter, the Director finds and concludes that Respondents' conduct presents an immediate and significant danger to the public welfare, and that the threat requires immediate action by the Division. The Director issues this Emergency Order in accordance with the provisions of Utah Code Ann. § 63-46b-20. The Director issues this Order to Show Cause in accordance with the provisions of § 61-1-20 (1) of the Act.
FINDINGS
In support of this Order, the Division's staff has received evidence establishing the following facts:
1. The records of the Department of Corporations and Commercial Code revealed GEET International, Corp. ("GEET") was incorporated on July 9, 2001. Paul Pantone ("Pantone” was listed on the corporation records as the President and Registered Agent for GEET.
2. Glenn Robertson ("Robertson") resides at 358 Cardinal Leger Blvd. in Pincourt, Quebec.
3. Robertson wanted to build a solar home and was referred to Pantone and GEET.
4. Pantone told Robertson he had invented technology that enabled two or three times the gas mileage while reducing emissions by 90 percent.
5. Pantone told Robertson the GEET technology was patented. Pantone also told Robertson he could invest in GEET.
6. Robertson had approximately five telephone conversations with Pantone about the investment. The phone calls were made while Pantone was in Utah.
7. Pantone said he was offering certificates in GEET for $25,000 each. Pantone said each certificate represented 1/25th of 1 percent in GEET and as an investor, Robertson would receive a percentage of worldwide profits of the GEET corporation.
8. Pantone told Robertson there were billions of dollars to be made and discussed how GEET would receive money on every device that was fitted with the GEET technology.
9. Pantone told Robertson he would give Robertson a bay for a car or truck to retrofit engines with the GEET device if Robertson invested $25,000.
10. Pantone described the investment as passive and Robertson's only role was to supply capital.
11. Pantone told Robertson he was only selling seven certificates and Pantone had already sold six certificates.
12. Pantone told Robertson that GEET was being bought out by another company for $12 million dollars. Pantone said be was receiving faxes regarding the buyout and Pantone was going to sign papers that night.
13. Pantone told Robertson he needed a deposit to hold the certificate and told Robertson to wire money for the investment Pantone e-mailed Robertson a two-page agreement for the investment.
14. On September 10, 2003, Robertson invested $1,000 by credit card to the GEET website at Pantone's instruction. On September 11, 2003, Robertson sent a check for $24,000 to Pantone and mailed the check through UPS to Pantone at River Oaks Apartments located at 9035 South 1075 West Apt. #114 in West Jordan, Utah 84088.
15. In connection with the offer and sale of the investment in GEET, Pantone failed to disclose to Robertson the following facts:
a. Pantone had been charged with four second-degree felony counts of Securities Fraud, one third-degree felony count of Securities Fraud, one third-degree felony count of Selling an Unregistered Security and one second-degree felony count of Pattern of Unlawful Activity and those criminal charges are pending.
b. On March 14, 2002, the State of Utah Division of Consumer Protection issued a Cease and Desist Order against Pantone and GEET concluding that Pantone committed a deceptive act or practice by failure to ship goods within the time he represented, prohibited by Utah Code Ann. §13-1 l-4(2)(1);
c. Pantone failed to cash out a previous investor;
d. In January 2000, Pantone had pledged the GEET patent to John McBride as collateral to secure a $200,000 investment;
e. On July 5, 2002, Pantone filed for a Chapter 13 Bankruptcy in Idaho; the bankruptcy was later dismissed.
f. In the bankruptcy, Pantone disclosed he owned a bare patent with no beneficial interest or value;
g. The bankruptcy court required Pantone to file a federal tax returns for the years 1990 through 2001;
g. In October 2002, Pantone transferred ownership of the GEET technology to Robert Fackrell;
h. Previous and pending litigation involving Pantone and/or GEET;
i. The identity of the officers, directors or managers of GEET and their related experience;
j. The business and operating history of GEET;
k. The number of investors;
i. Performance to previous investors;
m. Liquidity;
n. Whether the investment was registered or exempt from registration; and
o. The true degree of risk,
16. The investment offered by Respondents is a security as defined in §61-1-13(24)(a) of the Act.
17. Section 61-1-1 of the Act states:
It is unlawful for any person, in connection with the offer, sale or purchase of any security, directly or indirectly to:
1) employ any device, scheme, or artifice to defraud;
2) make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, fn the light of the circumstances under which they are made, not misleading; or
3) engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person.
18. Respondents made misleading statements and failed to disclose material information, as stated above, upon which Robertson could make an informed decision. Respondents are therefore in violation of § 61-1-1 of the Act.
EMERGENCY ORDER
In light of the foregoing, and in order to prevent or avoid danger to the public welfare, it is hereby ORDERED in accordance with Utah Code Ann. § 63-46b-20 that:
1. Respondents, together with their employees, agents, affiliates, assignees, successors, and associated entities, shall immediately CEASE AND DESIST from offering or selling securities in or from this State, and from directly or indirectly aiding or assisting other individuals or entities from offering or selling investment interests in securities in this State;
2. Respondents, together with their employees, agents, affiliates, assignees, successors, and associated entities, shall immediately CEASE AND DESIST from soliciting finders to promote the investments; and
3. Respondents, together with their employees, agents, affiliates, assignees, successors, and associated entities, shall immediately CEASE AND DESIST from any and all other or further violations of the Act.
4. Respondents are advised that, pursuant to Utah Code Ann § 61-1-21(1), any violation of this ORDER is punishable as a third-degree felony.
ORDER TO SHOW CAUSE
The Director, pursuant to Utah Code Ann. § 61-1-20, hereby orders Respondents to appear at a formal hearing to be conducted in accordance with Utah Code Ann. §§ 63-46b-4 and 63-46b-6 through -10, and held before the Utah Division of Securities. The hearing will occur at the date, time and place set forth in the attached Notice of Agency Action. If Respondents fail to appear at the hearing, an order to cease and desist may be issued and a fine imposed by default against Respondents, as provided by Utah Code Ann. § 63-46b-11. At the hearing, Respondents may show cause, if any they have:
1. Why Respondents should not be ordered permanently to cease and desist from engaging in any further conduct in violation of Utah Code Ann §§ 61-1-1, 6-1-3, 61-1-7 or any other section of the Act; and
2. Why Respondents should not be ordered to pay fines to the Division in an amount to be determined at the hearing.
DATED this 3rd day of October, 2003.
S. Anthony Taggart, Director
Utah Division of Securities
Approved:
Assistant Attorney General
Division of Securities
Utah Department of Commerce
160 East 300 South
Box 146760
Salt Lake City, UT 84114-6760
Telephone: (801) 530-6600
FAX: (801) 530-6980
BEFORE THE DIVISION OF SECURITIES
OF THE DEPARTMENT OF COMMERCE
OF THE STATE OF UTAH
IN THE MATTER OF: NOTICE OF AGENCY ACTION
PAUL PANTONE Docket no. SD-03-0063
GEET Docket no. SD-03-0062
Respondents.
THE DIVISION OF SECURITIES TO THE ABOVE-NAMED RESPONDENTS:
The purpose of this Notice of Agency Action is to inform you that the Division hereby commences a formal adjudicative proceeding against you as of the date of mailing of the mailing of the Emergency Order to Cease and Desist and Order to Show Cause The authority and procedure by which this proceeding is commenced are provided by Utah Code Ann. §§63-46b-3 and 63-46b-6 through 11. The facts on which this action is based are set forth in the foregoing Emergency Order to Cease and Desist and Order to Show Cause.
Within thirty (30) days of the date of this notice, you are required to file a written response with the Division. The response you file may be help in clarifying, refining or narrowing the facts and violations alleged in the Emergency Order to Cease and Desist and Order to Show Cause.
After your response is filed, a hearing will be set at a date and time agreed upon by the parties.
If you fail to file a written response, as set forth herein, or fail to appear at the hearing, you will be held in default, a permanent order to cease and desist will enter, and a fine will be imposed against you in accordance with Utah Code Ann. §64-46b-l1.
The presiding officer in this case is S. Anthony Taggart, Director, Division of Securities, 160 East 300 South, P.O. Box 146760, Salt Lake City, UT 84114-6760, telephone (801) 530-6600. The Administrative Law Judge will be J. Steven Eklund, Utah Department of Commerce, 160 East 300 South, P.O. Box 146701, Salt Lake City, UT 84114-6701, telephone (801) 530-6648. At such hearing, the Division will be represented by the Utah Attorney General's Office, 160 East 300 South, P.O. Box 140872, Salt Lake City, UT 84114-0872, telephone (801) 366-0310. At the hearing, you may appear and be heard and present evidence on your behalf.
You may attempt to negotiate a settlement of the matter without filing an answer or proceeding to a hearing. Should you so desire, please contact the Utah attorney General's Office. Question regarding the Emergency Order to Cease and Desist, Order to Show Cause and Notice of Agency Action should be directed to Jeff Buckner, Assistant Attorney General, 160 E. 300 South, P.O. Box 140872, Salt Lake City, UT 84114-0872, telephone (801) 366-0310.
DATED this 3rd day of October, 2003.
S. Anthony Taggart
Director, Division of Securities
Utah Department of Commerce
Certificate of Mailing
I certify that on the 3rd day of October, 2003, I mailed, by certified mail, a true and correct copy of the Emergency Order to Cease and Desist, Order to Show Cause and Notice of
Agency Action to:
Paul Pantone
3509 E Kings Hill Dr.
Salt Lake City UT 84121
Certified Mail # 70022410000361273598
Paul Pantone
9035 South 1075 West Apt. #114
West Jordan, Utah 84088
Certified Mail # 70022410000361273604
GEET
625W 5300 S A136
Salt Lake City UT 84123
Certified Mai1 #70022410000361273611
Executive Secretary