Enforcement Information
Enforcement Results Demonstrate Continuing Risk of Financial Fraud – Financial fraud
investigations conducted by the Department during 2007 involved an aggregate potential
financial impact estimated at nearly $30 million. As a result of the Department’s
enforcement efforts, Idaho residents were offered, or awarded in judgments by the
courts, in excess of $2.9 million in refunds. This total includes amounts refunded
to Idaho investors due to administrative, civil and criminal actions initiated or
supported by the Department and also includes voluntary rescission and refund offers
made in compliance with the laws administered by the Department.
The Department’s investigations and enforcement actions are varied and complex.
During the most recent fiscal year, the Department initiated or completed more than
140 enforcement actions. This past fiscal year saw the Department shut the doors
of an Idaho-based collection agency engaged in significant fraud and self-dealing
(Court Issues Permanent Injuction Against
Bannock Collections, Inc. release date 6/25/07), while other actions initiated
or completed include:
- A web-based identity theft/money transmitter scheme emanating from the former Soviet
Union; (Phony Financial Firm
Ordered to Cease and Desist 12/14/2006)
- An alleged fraudulent Iraqi currency investment scheme; (State
Finance Department Files Fraud Complaint Against Coeur D'Alene Promoter of Iraqi
Currency Investment Program 4/23/07)
- A phony on-line escrow company falsely claiming to be Idaho’s largest escrow company;
(Phony Online Escrow Companies Claiming
to Be Licensed in Idaho Have Their Websites Shut Down 6/29/06)
- A no risk, high yield investment and trading program with an international twist;
(Nampa Man Sued For Securities Law Violations
5/15/07); and
- An evangelical minister whose work included falsely promising handsome investment
returns; (Post Falls Minister Agrees to Sanctions
10/16/06)
The Department also referred and assisted in two criminal prosecutions this past
year, one under the Idaho Collection Agency Act and one securities fraud case.