For Immediate Release | 10-25-18      
  Media Contact | Nick Debus      
  Direct | 602-542-0728      
  E-Mail | ndebus@azcc.gov      
         
 

Securities Division Prevails in Maricopa County Superior Court Ruling

 
 

PHOENIX — The Maricopa County Superior Court recently ruled in favor of the Arizona Corporation Commission in an appeal of a case brought in 2016 against Bart Ellis and Oak Capital Partners, LLC, for investor fraud. Arizona Corporation Commission Decision No. 76541, dated January 3, 2018, was then appealed by the defendants in Maricopa County Superior Court, who on Tuesday ruled in favor of the Corporation Commission’s original decision.

The Corporation Commission’s Securities Division found that Bart Ellis, and his registered entity, Oak Capital Partners, LLC, committed violations of the Arizona Securities Act and the Investment Management Act, for investor fraud and not being registered as a securities salesman. Mr. Ellis was found to have defrauded investors out of approximately $1.1 million dollars over a period of four years beginning in the Fall of 2012. Securities Division staff concluded that roughly half of the investor funds were used by Mr. Ellis to pay his personal expenses, the other half was lost on day-trading activities.

The Corporation Commission ordered payment of full restitution to investors and an administrative penalty of $100,000. Additionally, the Corporation Commission found that the marital community of Bart and Colleen Ellis was jointly and severely liable for the restitution and penalties. Ms. Ellis appealed this portion of the decision in Maricopa County Superior Court, who, on appeal upheld the Corporation Commission’s decision. Mr. Ellis was also prosecuted by the United States Attorney’s Office. He was found guilty, ordered to pay restitution and penalties, and in October 2017 was sentenced to two years in prison.

To view all documents related to this matter please visit the Corporation Commission’s online docket at http://edocket.azcc.gov and enter docket number S-20949A-16-0002.

To learn more about how to protect yourself from investment fraud visit http://azinvestor.gov
 
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ABOUT US:

The Arizona Corporation Commission was established by the state’s constitution to regulate public utilities and business incorporation. The five Commissioners elected to the Corporation Commission oversee executive, legislative, and judicial proceedings on behalf of Arizonans when it comes to their water, electricity, telephone, and natural gas resources as well as the regulation of securities, pipeline, and railroad safety. To learn more about the Arizona Corporation Commission and its Commissioners, visit http://azcc.gov.