Maine State News: Article
Office of Securities issues warning on Almighty Wind, Inc.
July 21, 2008
Professional & Financial Regulation - Securities
Office of Securities issues warning on Almighty Wind, Inc.
FOR IMMEDIATE RELEASE
For information contact Alyson Cummings, 1-877-624-8551
(Augusta, Maine)
With the price of oil soaring this summer, the Maine Office of Securities is warning Maine investors to be wary of investment pitches for hot, new alternative energy technology companies. The Office decided to issue this warning after receiving information that at least ten Maine residents have invested in two Nevada corporations, Almighty Wind, Inc., and Apostles, Inc., supposedly developing new technologies using windmills. These investments were sold to the investors by James Rivera, who operates out of offices in Carson, California.
Acting Securities Administrator Bonnie E. Russell indicated that several factors have raised concerns about these investments. For starters, contracts signed by James Rivera give investors the right to “inspect the books of the Company once per quarter,” but investors have told the Office of Securities that Mr. Rivera has refused to give their representative access to the company’s books. In addition, Mr. Rivera has not responded to a letter from the Office, sent to him a month ago, seeking information about his activities.
Based on information received from investors, Mr. Rivera appears to have used his participation in a non-denominational Christian church in California to identify potential investors, who in turn recommend other investors based in part on their shared religious beliefs. Investors reported that sales pitches were made over the internet in so-called “webinars,” or teleconferences conducted by Mr. Rivera.
“While we have not yet completed our investigation of this case and have not determined whether these are legitimate investments, we are concerned because it is not unusual for people to use a connection, such as shared religious beliefs, to promote illegitimate investments,” said Jacqueline Drouin, an investigator with the Office of Securities. “In this instance, investors were told that their investment was part of God’s plan to help people, and they trusted Mr. Rivera because he appeared to share their Christian beliefs.”
Ms. Russell added that the investments are not registered with her office and Mr. Rivera is not licensed to sell securities in Maine. “While there are limited circumstances in which registration and licensing are not required, Mr. Rivera’s failure to respond to our inquiry has prevented us from determining whether that is the case here.”
Although this matter is still under investigation, Maine law authorizes the administrator to disclose investigations when she determines that disclosure is necessary for the protection of investors or the public.
“To date, Maine residents have invested at least $215,000 in these ventures, and we do not want to see more money put at risk until it is determined that these investments can lawfully be sold in Maine.”
More generally, Ms. Russell noted that there are steps Maine investors can take to reduce the possibility of becoming a victim of investment fraud. “The key to avoid getting burned by any investment is to make sure you understand the product being offered and to thoroughly check both the salesperson and the product with our office before investing. You should check to find out if the person who is offering the investment is licensed in Maine even if you believe the person is the most trustworthy person you know. Remember, if it sounds too good to be true, it usually is.”
Consumers may contact the Office of Securities to check an adviser, salesperson, or investment, or for other information related to investing by calling the Office toll-free at 1-877-624-8551 (TTY 1-888-577-6690), by visiting the Office’s website at www.investors.maine.gov, or by mail, Maine Office of Securities, 121 SHS, Augusta, ME 04333-0121.
The Office of Securities is part of Maine’s Department of Professional and Financial Regulation, which encourages sound ethical business practices through the regulation of insurers, financial institutions, creditors, investment providers, and numerous professions and occupations for the purpose of protecting the citizens of Maine. Consumers can learn more about the Department online at www.maine.gov/pfr.
MAINE NEWS ARTICLE: http://news.mainetoday.com/updates/030549.html
State warns investors of possible energy scams E-mail this page Reader Comments (below) By tux turkel Portland Press Herald Staff Writer July 21, 2008 12:20 PM Recent Updates 12:00 AM With the price of oil soaring this summer, the Maine Office of Securities is warning Maine investors to be wary of investment pitches for hot, new alternative energy technology companies.
The office decided to issue this warning after receiving information that at least 10 Maine residents have invested in two Nevada corporations, Almighty Wind, Inc., and Apostles, Inc., supposedly developing new technologies using windmills. These investments were sold to the investors by James Rivera, who operates out of offices in Carson, Calif.
Based on information received from investors, Rivera appears to have used his participation in a non-denominational Christian church in California to identify potential investors, who in turn recommend other investors based in part on their shared religious beliefs. Investors reported that sales pitches were made over the internet in so-called "webinars," or teleconferences conducted by Rivera.
The investments are not registered with the office and Rivera is not licensed to sell securities in Maine.
Consumers may contact the Office of Securities to check an adviser, salesperson, or investment, or for other information related to investing by calling toll-free at 1-877-624-8551 (TTY 1-888-577-6690), by visiting the office's website at www.investors.maine.gov, or by mail, Maine Office of Securities, 121 SHS, Augusta, ME 04333-0121.
A lie blended with the truth is harder to determine than either an outright lie or the complete truth.
