Securities Division

News

California Law Firm Settles Commission Lawsuit, Pays $2.2 Million

The Arizona Corporation Commission settled a securities violation lawsuit with California-based law firm, Wilson Sonsini Goodrich and Rosati, PC with the firm agreeing pay to $2,206,998 in restitution to the Commission.

The Commission will distribute the funds to investors in two, start-up internet companies, Mobile Corp.and Quepasa Corp. Located in Arizona, Mobile and Quepasa had hired Wilson Sonsini to represent them.

On July 9, 2020, the Commission’s Securities Division filed an enforcement action against Mobile and Quepasa and the principals of those companies—Jeffrey Scott Peterson, Michael D. Silberman, Justin C. Billingsley and Wilson Sonsini.

The Commission’s Securities Division alleged that the respondents’ actions had violated the Arizona Securities Act. The Securities Division further alleged that Wilson Sonsini made, participated in and induced Mobile’s and Quepasa’s allegedly unlawful sales. Wilson Sonsini denies all wrongdoing and any liability.

While this settlement resolves the case against Wilson Sonsini, the Commission’s Securities Division continues to pursue its action against the remaining parties.

All documents relating to this agenda item can be found in the Corporation Commission's online docket at https://edocket.azcc.gov and entering docket number S-21111A-20-0202.

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