News Release

PHOENIX – The Arizona Corporation Commission met on October 26 and 27, 2021 to discuss and vote on various securities items. Below please find the highlights from the October meeting:

Commission Finds Phoenix Man Sold Unregistered Cryptocurrency Investment

The Corporation Commission ordered Mario Sosa of Phoenix to pay $155,300 in restitution and a $20,000 administrative penalty for fraudulently offering and selling an unregistered cryptocurrency investment.

The Corporation Commission found that Sosa touted investment returns of more than 300 percent when selling the crypto investments, claiming investor funds would earn income through the buying and selling of cryptocurrency or by the purchase of machines that would “mine” various virtual currencies.

However, the Commission found that Sosa failed to disclose the risks associated with cryptocurrency and with a multilevel marketing business. Also, the Commission found Sosa failed to disclose that earlier investors had not been able to withdraw principal and interest as promised.

In settling this matter, the respondent neither confirms nor denies the Commission findings, but agrees to the entry of the consent order. 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-21108A-20-0181.

Commission Sanctions Former Securities Salesman for Unlawful Securities Sales

The Corporation Commission ordered respondents William Melvin Hawkins and Biomed Pharma Group, Inc. to jointly and severally pay $243,630 in restitution and a $30,000 administrative penalty for fraudulently offering and selling unregistered company stock.

The Commission found that Hawkins and Biomed Pharma Group sold unregistered Biomed stock while neither Hawkins nor Biomed were registered with the Commission as a securities salesman or dealer.

The Commission also found that Hawkins did not disclose to an investor that in 2007 the Commission revoked his securities salesman registration, ordered him to pay restitution and a penalty and prohibited him from selling unregistered securities in Arizona.

The Commission found that Hawkins misled an investor by making a personal guarantee on her investment even though Hawkins still owed more than a million dollars in restitution, could not find gainful employment, and had filed for bankruptcy.

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-21091A-19-0332.