The Securities Division of the Washington State Department of Financial Institutions has ordered Paul Doyle and Columbia City Cinema (CCC) to halt stock sales:
The order denies CCC’s application to register its common stock under the Washington Securities Act and gives notice of the Division’s intent to order CCC and Doyle to cease and desist from violating the Securities Act, to impose fines, and to recover investigative costs.
Doyle started the stock sale earlier this fall in a desperate attempt to raise $50,000 by the end of the year.
“We need to make up back bills, taxes and rent by December 31 or the landlord will evict us and turn the cinema into a storage unit,” he said in a November email.
The Securities Division says Doyle failed to provide potential purchasers of its stock with material information regarding the offering, such as financial statements to substantiate claims that the cinema has a “successful track record,” specific use of investor funds, and the risks inherent in purchasing the stock.
“The securities registration process protects investors by requiring investors receive the information they need to evaluate the investments offered to them,” said DFI Director of Securities Bill Beatty.
According to the Securities Division, Doyle has a right to request a hearing on the DFI’s allegations.
Columbia City Cinema – located at 4816 Rainier Ave. S. – is an RVP sponsor. Photo/do communications