ChristianChirp Founder’s Fraud Complaint
Seems James Paris, founder of ChristianChirp.com, has a little problem with the law. Securities fraud.
In or about January of 1998, Paris solicited a loan from JLPFS client and Maine resident Harry Stred III. In or about November of 1999, Paris solicited another loan from JLPFS client and Maine resident Kim Polak. Paris represented to Stred and Polak that the loans were for the purpose of expanding JLPFS’s business. As a result of Paris’ solicitations, Stred and Polak loaned Paris and JLPFS a total of $25,000.
6. In soliciting the loans, Paris did not disclose that JLPFS was losing money and that Paris was not involved in the day-to-day operations of JLPFS or in oversight of its finances.
7. On or about October 2, 2000, Paris solicited an extension of the loan he had received from Stred. In his solicitation, Paris represented that the loan provided “the necessary capital for the expansion of [Paris’] business that is already underway.” Paris again did not disclose that JLPFS was losing money and that Paris was not involved in the day-to-day operations of JLPFS or in oversight of its finances. As a result of the solicitation, Stred agreed to the extension.
8. At no time prior to obtaining the Polak loan or the Stred extension did Paris disclose that his brother Carmen Paris, who Paris had left in charge of JLPFS’s finances without supervision, had been systematically embezzling funds from JLPFS from the beginning of 1999 at a rate of approximately $500,000 a year.
9. At least in part due to the embezzlement, Paris and JLPFS defaulted on the loans.
10. On August 4, 2003, the Securities Administrator issued a Notice of Intent to take administrative action against Paris, JLPFS, and Carmen Paris for violations of the Revised Maine Securities Act in conjunction with the loans and Stred extension.
11. In February of 2004, Paris entered into a Consent Agreement with the Securities Administrator resolving the administrative action. A true and correct copy of the Consent Agreement is attached hereto as Exhibit A and incorporated herein by reference. Among other things, the Consent Agreement requires Paris to pay a total of $22,000 in restitution pursuant to a specified payment schedule. The Consent Agreement also provides that:
If any payment is not received within one week after the due date, it shall be considered a breach of this consent agreement, and, within thirty days, Paris shall pay to the Office of Securities the balance of the amounts due to the two Maine investors. . . .
If Paris fails to comply with any provision of this Consent Agreement, the Securities Administrator, at her sole and unreviewable discretion, may declare this entire Consent Agreement null and void.
12. Paris paid a total of $12,000 in restitution under the Consent Agreement. However, Paris ceased making payments in September of 2004. Despite demand, Paris has failed to pay any portion of the remaining $10,000 due under the Consent Agreement.
The resolution of the complaint may be found here:
Paris, without admitting or denying the allegations in the Complaint, consents to judgment containing the following relief:
1. Paris shall not apply for any license in Maine as a broker-dealer, investment adviser, sales representative, agent, or investment adviser representative, nor shall he otherwise act as, or associate with, a securities issuer, broker-dealer, or investment adviser, or otherwise engage, participate, or assist others in the issuance, offer, sale, or purchase of securities in Maine. Further, Paris shall not apply for any license in Maine to sell real estate, insurance, or other investments, nor shall he otherwise act in Maine as a financial planner or as any other financial or investment professional.
2. Paris shall pay $10,000 in restitution to the Securities Administrator for distribution to Harry Stred III and Kim Polak based upon the amounts of their un-reimbursed losses. Paris shall pay this restitution according to the following schedule:
a. $1000 on or before September 1, 2005; and
b. $1000 on or before the first day of each succeeding month until the entire $10,000 has been paid.
That’s right, it took a court order to get this fine, upstanding Christian to pay his debts.
But for only $159, you can learn how to earn money on the Internet as a Christian! Oh, and don’t miss his website on Christian money management.
I wonder if there’s a Securities Fraud How-To buried on his sites?