The state Department of Commerce and Consumer Affairs’ (DCCA) Commissioner of Securities, Ty Nohara, issued a preliminary order to cease and desist and notice of right to hearing against concert promoters Ferdinand C. Jacobe, Gina T. Carlos, and P.B.C. Productions, LLC for violating state securities laws.
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The order asserts that, between January 2012 and June 2013, Jacobe and P.B.C. Productions solicited investors among the local Filipino community to fund three concerts in Hawaii, guaranteeing returns of 10 to 40 percent within days of each concert. The order asserts that P.B.C. Productions enlisted the assistance of an agent, Carlos, to solicit investors for the first two concerts. As a result, more than 30 Hawaii residents invested a combined total of $666,000 into the concerts. Nearly two years have passed since the last concert took place, and many investors remain unpaid.
Jacobe and P.B.C. Productions are accused of failing to disclose to investors that they were substantially in debt to numerous past investors, and the proceeds of a future concert, as well as a portion of new investors’ funds, were needed to repay past investors, and investors’ funds would not be returned by the guaranteed deadline.
Jacobe, Carlos, and P.B.C. Productions also failed to inform the investors who were solicited by Carlos that Carlos would be receiving a 5 to 15 percent commission on the funds she collected from them.
State securities laws include anti-fraud provisions, requiring both securities and persons soliciting or transacting securities to be registered with DCCA’s Securities Compliance Branch. The order asserts that Jacobe and P.B.C. Productions violated these anti-fraud provisions by employing deceptive schemes and devices to perpetuate fraud. It further alleges that neither Jacobe nor Carlos was registered to transact securities in Hawaii, and the securities they sold to investors were also unregistered.
The order seeks total penalties of $200,000 in addition to a permanent injunction against Jacobe and Carlos for transacting securities in the state, disgorgement of commissions received, and rescission of the sales of the securities.
Anyone who has been solicited by Jacobe, P.B.C. Productions, or Carlos to invest in a concert or who may otherwise have information regarding this matter is urged to contact the DCCA’s Securities Enforcement Branch (SEB) at 808-586-2740 or toll free 1-877- HI-SCAMS.
SEB receives and investigates complaints regarding potential violations of Hawaii securities laws and prosecutes securities fraud as well as other securities law violations.
Filed under: Announcements, Hawaii, Legal, State Affairs | Tagged: Ferdinand C. Jacobe, Gina T. Carlos, P.B.C. Productions | Leave a comment »