1300 W. Washington Street
Phoenix, AZ 85007-2996
The Corporation Commission ordered former Phoenix resident David Paul French and his affiliated companies to pay $851,030 in restitution and a $50,000 administrative penalty for defrauding investors for a second time.
The Commission found that French, Sun State Property Preservation, LLC and Wattenberg, LLC. fraudulently offered and sold company stocks, units or shares to at least 29 investors while not registered as a securities salesman or dealer. The Commission found French and his affiliated companies made multiple misrepresentations and material omissions to investors.
This is the second time the Corporation Commission’s Securities Division has taken legal action against French and his affiliated companies. In August 2002, the Corporation Commission issued Decision No. 65162 against French and others for their fraudulent offerings and sales of securities involving an automobile-sale-lease-back business. In 2003, based upon the activities outlined in the 2002 Decision, French pled guilty to fraud schemes and theft. French was sentenced to three and a one-half years in prison and seven years’ probation. The Corporation Commission found that French and his affiliated companies failed to disclose to investors his prior criminal fraud and theft conviction and administrative actions against him.
In settling this matter, French and his affiliated companies admit to the Commission’s findings and agree to the entry of the consent order. All documents related to this agenda item can be found in the Corporation Commission’s online docket at https://edocket.azcc.gov and entering docket number S-21105A-20-0114.