Cash 4 Cars Wholesalers

Agency: California Department of Business Oversight~Description: The following describes a government action that has been resolved by either a settlement or a decision by a court or an administrative agency. If the matter is being appealed it will be noted below.~~On October 2 2012 the California Department of Corporations filed a Desist & Refrain Order against this company and its principal Charles Riordian. The company engages in the business of making consumer loans associated with a borrower’s vehicle to California residents. ~~According to the DOC beginning in or about 2009 the defendants offered and sold securities in the form of investment contracts to California residents. Pursuant to the terms of these investment contracts a California investor in exchange for a monthly profit on the capital invested would pay the defendants a lump sum of capital between approximately $5 000.00 to $10 000.00 for the purpose of investing in the company and for investing in the storage or redemption of borrower’s vehicles. California investors would not have any other involvement with the investment or the defendants other than providing investment capital for profit. ~ ~Beginning in or about 2009 the defendants offered and sold the above described Securities in the form of investment contracts in the State of California. These securities were offered and sold in California in issuer transactions. The Department of Corporations has not issued a permit or other ~form of qualification authorizing any person to offer and sell these investment contracts in California. ~~Beginning in or about 2009 the defendants allegedly misrepresented to investors that the investment was a "no risk" investment; investors would receive a profitable return on their investment; and each investor would receive monthly income as profit from their initial investment. ~~The defendants were also found to be engaged in the business of making consumer loans to California residents. Specifically the defendants offered quick cash or fast cash loans from $100.00 to six (6) figure amounts to California residents at varying interest rates for thirty (30) days. In return the defendants took possession and title of the borrower’s vehicle for the duration of the loan. Specifically borrowers were required to store. their vehicles with the company for thirty (30) days. At the termination of the loan term of thirty (30) days borrowers were required to repay the principle amount of the loan in addition to interest at the percentage rate of approximately 13% for the amount borrowed. This interest was referred to by the company as a storage fee and a paperwork fee. Upon receipt of all monies the company would then return the borrower’s vehicle to the borrower. ~~The defendants were not issued licenses by the Commissioner authorizing them to engage in the business of finance lending under the California Finance Lenders Law. The defendants are not exempt from the licensing requirements of California ~Financial Code section 22100. Based on these findings the California Corporations Commissioner determined that the investment contracts sold by the defendants are securities subject to qualification under the California Corporations Code. These securitiesr were offered and sold without being qualified or exempt in violation of California law.~~The defendants are ordered to desist and refrain from the further offer or sale in the State of California of securities including investment contracts unless and until qualification has been made under the law or unless exempt. ~~Further the California Corporations Commissioner is of the opinion that the securities in the form of investment contracts were offered or sold in this State by means of a written or oral communication which included an untrue statement of material fact or omitted to a state material fact necessary to make the statement made in the light of the circumstances under which they were made not misleading The defendants were ordered to desist and refrain from offering or selling or buying or offering to buy any security in the State of California including but not limited to investment contracts by means of any written or oral communication which includes an untrue statement of material fact or omits to state a material fact necessary in order to make the statements made in the light of circumstances under which they were made not misleading. ~~Finally by reason of the foregoing the California Corporations Commissioner finds that each defendant has engaged in business as a finance lender without having first obtained a license from the Commissioner. Pursuant to state law the defendants are hereby ordered to desist and refrain from engaging in the business of a finance lender in the State of California without first obtaining a license from the Commissioner or otherwise being exempt. The Order was filed in the public interest for the protection of investors and consistent with the purposes policies and provisions of the California Corporations Code and the California Financial Code. This order shall remain in full force and effect until further order of the Commissioner. ~ ~~Date of Action: 10/2/2012