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:

1. 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)
2. 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)
3. 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)
4. A no risk, high yield investment and trading program with an international twist; (Nampa Man Sued For Securities Law Violations 5/15/07); and
5. 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.